On August 6, 2024, Jack In The Box Inc (JACK, Financial) released its 8-K filing detailing the financial results for the third quarter of fiscal 2024, ending July 7, 2024. Jack In The Box Inc operates quick-service and fast-casual restaurants under the brands Jack in the Box and Del Taco, offering a variety of customizable menu items and catering services.
Performance Overview
Jack In The Box Inc (JACK, Financial) reported a diluted loss per share of ($6.26), significantly impacted by a $162.6 million non-cash goodwill impairment charge for Del Taco. The company's operating EPS was $1.65, surpassing the analyst estimate of $1.42. However, total revenues fell short at $369.2 million, compared to the estimated $365.29 million.
Jack in the Box Segment
Same-store sales for Jack in the Box decreased by 2.2%, with franchise same-store sales declining by 2.4% and company-owned same-store sales slightly increasing by 0.1%. Systemwide sales decreased by 1.3%. The restaurant-level margin was 21.0%, down from 21.8% a year ago, primarily due to higher labor and operating costs.
| 12 Weeks Ended | July 7, 2024 | July 9, 2023 |
|---|---|---|
| Company | 0.1% | 6.9% |
| Franchise | (2.4%) | 8.0% |
| System | (2.2%) | 7.9% |
Del Taco Segment
Del Taco's same-store sales decreased by 3.9%, with franchise same-store sales down by 4.1% and company-operated same-store sales down by 3.5%. Systemwide sales for Del Taco decreased by 3.2%. The restaurant-level margin was 13.4%, down from 17.4% a year ago, driven by increased labor and utility costs.
| 12 Weeks Ended | July 7, 2024 | July 9, 2023 |
|---|---|---|
| Company | (3.5%) | 1.7% |
| Franchise | (4.1%) | 1.8% |
| System | (3.9%) | 1.7% |
Company-Wide Financials
Jack In The Box Inc (JACK, Financial) reported a net loss of ($122.3) million for the third quarter, compared to net earnings of $29.2 million in the prior year. Adjusted EBITDA was $78.9 million, down from $81.6 million. The company’s SG&A expenses decreased by $10.0 million to $29.6 million, primarily due to lower incentive-based compensation and favorable adjustments to reserves.
Capital Allocation and Guidance
The company repurchased 0.3 million shares for $15.1 million and declared a cash dividend of $0.44 per share, payable on September 19, 2024. Updated guidance for FY 2024 includes adjusted EBITDA of $320-$325 million and operating EPS of $6.10-$6.25.
"I am proud of our teams and how they continue to enhance the guest experience and deliver operational improvements during a challenging sales environment for our entire industry," said Darin Harris, Jack in the Box Chief Executive Officer.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Jack In The Box Inc for further details.
