Fast-food restaurant chain Jack in the Box (Nasdaq: JACK) reported higher earnings and revenues for the second quarter. Earnings topped expectations, while revenues missed. The company also provided its guidance for fiscal 2019. The stock moved up modestly after the announcement on Wednesday.
Earnings, excluding one-off items, rose to $0.99 per share from $0.80 per share in the second quarter of 2018, exceeding Wall Street’s consensus estimate. The improvement reflects a 3% increase in revenues to $215.73 million. Analysts had predicted a higher top-line number.
Reported profit was $25.09 million or $0.96 per share, down from $47.61 million or $1.62 per share reported a year earlier. Total same-store sales moved up 0.6%, with franchise sales and system sales rising 0.1% and 0.2%, respectively.
Lenny Comma, CEO of Jack in the Box, said, “Our greater emphasis on bundled value in the second quarter resulted in a sequential improvement in traffic and sales without sacrificing restaurant margins. We’re pleased that this momentum has accelerated through the first four weeks of our third quarter as same-store sales have increased by more than two percent.”
For fiscal 2019, the company currently forecasts total same-store sales to be flat to up 1%. It is looking for full-year adjusted EBITDA between $260 million and $270 million. Capital expenditure is expected to be in the range of $30 million to $35 million. The management plans to open 25-35 new restaurants this year.
Rival fast-food company Chipotle Mexican Grill (CMG) last month reported strong first-quarter results that beat the Street view. Earnings surged 60% annually to $3.4 per share on revenues of $1.3 billion, which was up 14%.
Shares of Jack in the box hit a two-year low recently and are currently trading below their long-term average. The stock, which lost about 3% since last year, closed Wednesday’s trading session higher and continued to gain in the after-hours on Wednesday.