Jack in the Box’s Share Price Surges on Strong 3Q16 Earnings



JACK’s 3Q16 performance

Based in San Diego, Jack in the Box (JACK) operates the Jack in the Box brand, a fast food restaurant chain, and Qdoba Mexican Eats, a Mexican-style fast casual restaurant chain.

Jack in the Box announced its fiscal 3Q16 results on August 3, 2016. JACK posted revenues of $368.9 million, an increase of 2.6% from its 3Q15 revenues. Its adjusted EPS (earnings per share) of $1.07 rose 33.3% increase from $0.8 in 3Q15.

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Stock performance

Jack in the Box beat Wall Street analysts’ EPS estimates of $0.87. This along with the rise in EPS and same-store sales growth guidance for fiscal 2016 has increased investors’ confidence, thus increasing its share price. As of August 5, 2016, Jack in the Box was trading at $96.99, 10.6% up from its previous day’s closing price.

Year-to-date performance

In fiscal 2015, JACK’s share price fell by 4%. However, the measures taken by the company to improve the quality of its products appears to have paid off. Year-to-date, the company’s share price has increased by 26%. During the same period, peers Wendy’s (WEN), Restaurant Brands International (QSR), and Chipotle Mexican Grill (CMG) have returned -8.1%, 25%, and -17.2%, respectively.

Series overview

In this series, we’ll look at Jack in the Box’s 3Q16 earnings call and notes, along with its performance on key metrics during the quarter. We’ll also cover management’s guidance and analysts’ estimates for the rest of 2016 and beyond.

Let’s start by looking at revenue growth for Jack in the Box in 3Q16.


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