Jack In The Box Inc

Unit growth isn’t the only factor that drives revenue. A restaurant can keep adding more restaurants. Eventually, it can capture newer markets. This is what Chipotle is doing.

Valuation multiple Investors should look at valuation multiples when deciding whether to enter or exit a stock. Valuation multiples are driven by perceived growth, risk and uncertainties, and investors’ willingness to pay for a stock. There are various multiples to evaluate a stock. In this article, we’ll use the PE (price-to-earnings) ratio due to its […]

Wall Street analysts are expecting McDonald’s (MCD) to post EBIT of $2.1 billion in 3Q16. This represents an EBIT margin of 33.2% compared to 30.7% in 3Q15.

So far in this series, we’ve discussed McDonald’s (MCD) estimated revenue, sources of revenue, and estimated EBIT (earnings before interest and tax) margins.

Jack in the Box (JACK) and Restaurant Brands International (QSR) are analysts’ favorites among the companies we’ve reviewed in this series.

McDonald’s (MCD) is scheduled to announce its 3Q16 results on October 21, 2016. As of October 13, 2016, it was trading at $115.40, a fall of 9.4% from July 25.

In the last four quarters, McDonald’s has beaten analysts’ estimates. In 3Q16, analysts are expecting the company to post EPS of $1.48, a year-over-year rise of 6.1%.

A New York–based fine casual restaurant chain, Shake Shack (SHAK) announced its 4Q15 results on March 7, 2016. SHAK reported an overall revenue of $51.1 million and earnings per share of $0.08.

For the next four quarters, analysts are expecting Shake Shack (SHAK) to post revenues of $427.9 million, which would be a 27.4% YoY (year-over-year) rise.

In 2Q16, Wendy’s posted EBIT of $71.7 million—an EBIT margin of 18.7% compared to 13.3% in 2Q15. Analysts expected the EBIT margin to be 16.7%.

McDonald’s (MCD) competition includes large international and national food chains as well as regional and local retailers of food products.

For the second quarter, analysts expect Jack in the Box to report revenue of $211.1 million—a fall of 2.1% from the second quarter of 2019.

More Americans are eating out, and they’re eating out more often. The restaurant industry’s share of the food dollar is 51%, up from 25% in 1955.

In the first quarter of 2019, analysts expect McDonald’s (MCD) revenue to fall 4.1% YoY (year-over-year) to $4.93 billion from $5.14 billion, likely due to its company-owned restaurant count falling.

In the first three quarters of 2018, McDonald’s (MCD) revenue fell 9.3% to $15.86 billion.

McDonald’s (MCD) has posted EBIT (earnings before interest and tax) of ~$8.9 billion, which represents an EBIT margin of 38.8%.

In 2017, McDonald’s (MCD) posted revenues of ~$22.8 billion, which represents a fall of 7.3% from ~$24.6 billion in 2016.

Revenue expectations In 2018, analysts expect McDonald’s (MCD) to post revenue of $21.1 billion, which represents a fall of 7.7% from its revenue of $22.8 billion in 2017. As part of its optimizing strategy, McDonald’s has been refranchising its company-owned restaurants. The refranchising is expected to lower the company’s revenue in 2018. However, some of […]

The initiatives taken by Wendy’s management to drive SSSG appear to have led to a rise in WEN stock and a higher valuation multiple.

Wendy’s (WEN) posted SSSG (same-store sales growth) of 1.3% in the North American region compared to 0.8% in 4Q16.

In this series, we’ll look at analysts’ earnings and revenue estimates for the next four quarters. We’ll also review Wendy’s valuation and analysts’ recommendations.

As of October 25, 2017, McDonald’s was trading at a forward PE multiple of 23.66x compared to 23.57x before the announcement of 3Q17 earnings.

Wendy’s (WEN) has been trading above its peers’ valuation multiple.

As of May 24, 2017, McDonald’s was trading at a PE multiple of 22.6x—compared to 21.3x before the announcement of its 1Q17 earnings.

As of April 19, 2017, McDonald’s was trading at a PE multiple of 21.1x, as compared to 19.9x before the announcement of its 4Q16 earnings.

In 2016, Domino’s Pizza (DPZ) paid dividends of $1.52—growth of 22.5% from $1.24 in 2015. In 2017, analysts expect its dividends to rise 7.9% to $1.64.

As of September 16, 2016, these five fast food restaurants were trading at a median PE multiple of 21.4x.

Wendy’s (WEN) posted its 2Q16 results on August 10, 2016. The company posted adjusted EPS (earnings per share) of $0.11 on revenue of $382.7 million.

In 2Q16, McDonald’s revenue declined by 3.6% from $6.5 billion to $6.3 billion.

According to Bloomberg, of the ten analysts surveyed, 45.5% have issued “buy” recommendations for Wendy’s, while 50% have issued “hold” recommendations.

According to a Bloomberg survey of 16 analysts, 62.5% have given “buy” recommendations for JACK, and 37.5% have given “hold” recommendations.

A company is greatly impacted by its management’s decisions. In this article, we’ll discuss The Cheesecake Factory’s (CAKE) management and its achievements.

In 1Q16, Shake Shack saw a 43.3% rise in revenue over $37.8 million in 1Q15, driven by unit growth and same-store sales growth.

Wendy’s Company (WEN) generates its revenue through company-owned restaurant sales, franchisee fees, rental income, and royalty collected from franchisees.

In 4Q15, MCD, YUM, WEN, QSR, JACK, SONC, PZZA, and DPZ generated an average revenue of $189 per square foot.

Jack in the Box (JACK) manages marketing funds that include contributions from both its franchise and company-owned restaurants.

To speed up service, Jack in the Box (JACK) used a two-way intercom when it opened its first restaurant in 1951.

Since Jack in the Box’s acquisition of brand Qdoba Mexican Grill, now named Qdoba Mexican Eats, the brand has grown from a mere 85 restaurants to 661.

In 2003, when Jack in the Box (JACK) acquired Qdoba Mexican Grill for $45 million, Qdoba was operating 85 outlets with a total revenue of $65 million.

Headquartered in San Diego, California, Jack in the Box (JACK), was founded by Robert O. Peterson in 1951.

Chipotle’s average restaurant size is about 2,550 square feet. With an average restaurant volume of $2.4 million, the revenue per square foot comes to $969.

Restaurant industry sales have experienced growth in the past 12 months. Sales are poised to grow to $709 billion.

While the absolute minimum wage has increased, when adjusted for inflation in 2015, its purchasing power has declined.