Jack in the Box’s stock performance
San Diego-based restaurant chain Jack in the Box (JACK) is set to announce its 2Q16 results on May 11, 2016, after the market closes. The company operates the Jack in the Box brand, a fast-food restaurant chain, and Qdoba Mexican Eats, a Mexican-style fast casual restaurant chain.
JACK announced its 1Q16 results on February 17, 2016. JACK’s 1Q16 results were lower than analysts’ estimates, which dragged down the stock. Since that announcement, the share price of JACK has declined by 10.7%. During the same period, the share prices of peers McDonald’s (MCD), The Wendy’s Company (WEN), and Restaurant Brands International (QSR), which operates Burger King, have appreciated by 8%, 15%, and 14.7%. Meanwhile, the share price of the Guggenheim S&P 500 Pure Growth ETF (RPG) has risen by 8.6%. RPG has invested 44% of its holdings in restaurants and travel companies.
This pre-earnings release series will explore what we can expect from JACK’s 2Q16 earnings. The series will cover analysts’ estimates for revenue, EBIT (earnings before interest and tax) margins, and earnings per share. To wrap up this series, we’ll look at the company’s valuation and the expected stock price over the next 12 months. Let’s start by discussing JACK’s 2Q16 revenue expectations.