Jack in the Box Stock Rose on Strong Fiscal 4Q16 Earnings



Jack in the Box’s 4Q16 performance

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

Jack in the Box announced its fiscal 4Q16 results on November 21, 2016. It posted revenues of $398.4 million, a rise of 12.5% from its fiscal 4Q15 revenues. Its adjusted EPS (earnings per share) of $1.03 rose 41.3% from $0.73 in 4Q15.

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Market response

Analysts were expecting JACK to post adjusted EPS of $0.90 on revenues of $398.7 million. The better-than-expected earnings boosted investor confidence, leading to a rise in JACK stock. The company’s share price closed on November 22, 2016, at $107.80, a rise of 6.1% from the previous day’s closing price.

Year-to-date performance

In fiscal 2015, JACK’s share price fell 4.0%. However, measures taken by the company to improve the quality of its products appear to have paid off. Year-to-date, the company’s stock has risen 43.6%.

During the same period, peers Wendy’s (WEN), Restaurant Brands International (QSR), and McDonald’s (MCD) returned 19.0%, 34.6%, and 1.8%, respectively.

The broader comparative index, the iShares US Consumer Services (IYC), has risen 7.0% since the beginning of 2016. IYC invests 11.3% of its holdings in restaurants and travel companies.

Series overview

In this series, we’ll look at Jack in the Box’s fiscal 4Q16 earnings call and notes as well as its performance on key metrics during the quarter. We’ll also cover management’s guidance and analyst estimates for fiscal 2017.

Let’s start by looking at revenue growth for Jack in the Box (JACK) in fiscal 4Q16.


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