Jack in the Box (JACK) reported mixed fourth quarter results. Earnings of $0.77 per share missed analysts’ estimates, while revenues of $177.5 million surpassed the analysts’ views. Company same-store sales increased 0.8% compared to the fourth quarter of 2017. The stock was up about 3% during the extended hours.
As expected, revenue for the final quarter of 2018 dropped annually. The company same-store sales increase of 0.8% was driven by average check growth of 2.8%. Jack in the Box completed its refranchising initiative during the quarter with the sale of 8 restaurants in Q4, and now the franchise mix stands at 94%.
For fiscal 2019, the restaurant operator expects system same-store sales of approximately flat to up 2%. Following the completion of longer-term financing plans, JACK expects to return more than $1 billion through FY 2022 to its shareholders in the form of share repurchases and dividends.
Growing no of refranchised restaurants likely to reduce Jack in the Box’s topline in Q4
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Shares of JACK, which were trading in the positive territory during the morning session, pared gains and turned into negative territory during the afternoon session. The stock ended the day at $79.64, down 1.24%.