Company probably would have come in close to the 40 cents estimate for the first quarter had a large chunk of refranchising income been included. Management indicates this amount just fell into the second quarter rather than the first as previously anticipated. This shift will result in an improvement in refranchising income for this second quarter compared to last year's quarter.
Because they kept guidance the same, the stock should stabilize accordingly after the first quarter operating results are digested by the investment community.
JACK can now continue utilizing that $47 million alloted to share buybacks, probably at a lower price per share than if they had beat this quarter.
On balance, just about how I expected things to be going at this point. I am especially encouraged by the stabilization in the California market. In the second half of this calendar year we should start to see meaningful improvement in their comp experience.