Here's What to Expect From Jack in the Box's (JACK) Q1 Earnings
Jack in the Box Inc. JACK is scheduled to report its first-quarter fiscal 2024 results on Feb 21, after market close.
In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 5.2%, while revenues beat the same by 1.2%. The top and bottom lines declined on a year-over-year basis.
JACK’s earnings surpassed expectations in three of the last four quarters and missed on one occasion, the average surprise being 10.1%.
Q1 Expectations
The Zacks Consensus Estimate for earnings increased to $1.95 per share from $1.92 per share, over the past 30 days. The estimated value portrays a 3% year-over-year decline from earnings of $2.01 per share.
The consensus mark for revenues is pegged at $480.2 million, suggesting a decline of 8.9% from the year-ago quarter’s value of $527.1 million.
Factors to Consider
Jack in the Box’s fiscal first-quarter revenues are likely to have declined year over year because of soft restaurant contributions due to decreases in transactions and menu mix driven by fewer drink attachments and items per check. Our model predicts restaurant sales, and franchise royalties & other revenues to decrease 11.8% and 10.9% year over year to $238.2 million and $68.1 million, respectively. We expect franchise rental revenues to have declined 3.9% year over year to $104.6 million.
However, favorable pricing, digital initiatives, expansion efforts and reimaging programs are likely to have bode well for the company.
Meanwhile, rising commodity inflation, wage inflation and increases in food and packaging costs and utilities are discouraging. These headwinds are likely to have affected the company’s bottom line on a year-over-year basis in the quarter under discussion. We expect the restaurant-level margin for the to-be-reported quarter to have declined 10% year over year to $43.4 million.
What Does the Zacks Model Say?
Our proven model conclusively predicts an earnings beat for Jack in the Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Jack in the Box has an Earnings ESP of +1.30%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: JACK currently carries a Zacks Rank of 3.
Other Stocks Poised to Beat Earnings
Here are some other companies in the Zacks Retail-Wholesale sector, which according to our model, also have the right combination of elements to post an earnings beat in the quarter to be reported.
The Gap, Inc. GPS has an Earnings ESP of +24.44% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GPS’ earnings for the to-be-reported quarter are expected to have surged 125.3%. The company reported better-than-expected earnings in three of the last four quarters and missed on one occasion, the average surprise being 137.9%.
Dave & Buster's Entertainment, Inc. PLAY currently has an Earnings ESP of +3.51% and has a Zacks Rank of 2.
PLAY’s earnings topped the consensus mark in three of the last four quarters and remained flat on the remaining occasion, with the average surprise being 34.5%. Earnings for the to-be-reported quarter are expected to have gained 42.5% year over year.
Sweetgreen, Inc. SG presently has an Earnings ESP of +26.62% and a Zacks Rank of 3.
SG’s earnings for the to-be-reported quarter are expected to have increased 47.7%. The company reported better-than-expected earnings in one of the last four quarters and missed on other three occasions, the average negative surprise being 2.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
Dave & Buster's Entertainment, Inc. (PLAY) : Free Stock Analysis Report
Sweetgreen, Inc. (SG) : Free Stock Analysis Report
