Jack In The Box Stock Falls On Q4 Revenue Miss, Weak Margin

Jack In The Box Inc JACK reported fourth-quarter FY21 sales growth of 9% year-on-year, to $278.45 million, missing the consensus of $289.07 million. EPS of $1.80 beat the analyst consensus of $1.75.

• Systemwide sales grew 8.6% Y/Y, same-store sales increased 0.1%. Company-operated same-store sales declined 4.4%, while Franchise same-store sales rose 0.6%.
• Restaurant-Level margin was 20.1%, a decrease of 6.9% from the fourth quarter a year ago.
• Selling, general and administrative expenses rose 46.7% Y/Y to $21.6 million.
• The operating margin was 24.6%, and operating income for the quarter rose 4.2% to $68.7 million.
• The company held $73.6 million in cash and equivalents as of October 3, 2021. Cash flow provided by operating activities for the year totaled $201.1 million.
• On November 19, 2021, the company's board authorized an additional $200.0 million stock buy-back program that expires on November 20, 2023. It also declared a cash dividend of $0.44 per share, to be paid on December 23, 2021, to shareholders of record on December 9, 2021.
• Jack In The Box reported no change to its 3-5 year outlook as provided at Investor Day on June 29, 2021.
• Price Action: JACK shares are trading lower by 2.58% at $93.34 on the last check Tuesday.