Jack in the Box (JACK) earns its revenue from company-operated restaurant sales, franchise fees, and royalties collected from franchisees for the Jack in the Box and Qdoba Mexican Eats brands.
In fiscal 4Q16, JACK posted revenues of $398.4 million, a rise of 12.5% from $354.1 million in fiscal 4Q15. In 4Q16, the Jack in the Box brand posted a rise in revenue of 9.9%, while Qdoba Mexican Eats posted a rise of 19.9%.
In the last 12 months, the Jack in the Box brand has increased the unit count of its company-owned restaurants by four and its franchised restaurants by 12. This, along with a systemwide same-store sales growth of 2.0%, drove Jack in the Box’s revenue.
Qdoba’s revenue growth was driven by a rise in the unit count of company-owned restaurants by 45 and a systemwide same-store sales growth of 0.80%. However, the unit count of franchised restaurants fell by seven, which offset some of the gains in revenue.
Analysts expect the company to post revenue of $1.6 billion in fiscal 2017. That figure represents a fall in revenue of 1.4% from 2016. Due to its optimization strategy, the company has been refranchising its restaurants to decrease the unit count of company-owned restaurants 10.0%. Fewer company-owned restaurants are expected to lower the company’s revenue in fiscal 2017. However, positive same-store sales growth is expected to offset the lower count.
Next, we’ll look at same-store sales growth for the Jack in the Box brand in fiscal 4Q16.