Jack in the Box
The 10-second takeaway
For the quarter ended Jan. 22 (Q1), Jack in the Box missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share shrank significantly.
Gross margins expanded, operating margins shrank, and net margins dropped.
Jack in the Box logged revenue of $652.7 million. The one analyst polled by S&P Capital IQ looked for a top line of $682.2 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $664.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.25. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.24 per share on the same basis. GAAP EPS of $0.27 for Q1 were 56% lower than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.1%, 2,950 basis points better than the prior-year quarter. Operating margin was 4.2%, 30 basis points worse than the prior-year quarter. Net margin was 1.8%, 310 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $502.3 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $1.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 325 members out of 358 rating the stock outperform, and 33 members rating it underperform. Among 133 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 124 give Jack in the Box a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Jack in the Box is hold, with an average price target of $22.86.
Over the decades, small-cap stocks like Jack in the Box have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Jack in the Box to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Attention Pot Smokers: This Fast-Food Giant Has a Meal Deal for You
Big companies are paying close attention to California's multibillion-dollar marijuana market.
Jack in the Box Pushes Qdoba Out of the Box
The fast-food company sold its Mexican chain to private equity firm Apollo Global.
There's Lots of Growth to Go Around
The Dow made never-before-seen gains this year, but it’s hardly the only growth story in this podcast.