Jack In The Box Analysts Cut Their Forecasts After Q2 Results

Jack In The Box Inc JACK reported better-than–expected second-quarter FY24 adjusted EPS on Tuesday.

The company reported a second-quarter FY24 sales decline of 7.7% year-on-year to $365.35 million, missing the analyst consensus estimate of $368.64 million. Adjusted EPS of $1.46 beat the consensus estimate of $1.42, according to data from Benzinga Pro.

Jack In The Box same-store sales decreased 2.5% in the second quarter, consisting of a decline in company-operated same-store sales of 0.6% and a decrease in franchise same-store sales of 2.6%. Systemwide sales for the quarter dropped 1.6%.

"I am proud of the execution by our Jack and Del Taco teams, delivering better-than-expected earnings and margin performance while navigating through increasing macro headwinds, pressure on low-income consumers and the implementation of California's minimum wage legislation," said CEO Darin Harris. "Top-line performance was impacted by the shift in consumer behavior and an unexpected delay in our Smashed Jack launch, but sales have improved since its introduction in mid-March. We have a clear plan to regain same store sales traction through a strong marketing calendar, new LTO's, and an expanded value menu throughout the remainder of 2024."

Jack In The Box slashed the upper end of its FY24 EPS outlook, revising the range from $6.25 – $6.50 to $6.25 – $6.40. The company now sees FY24 adjusted EBITDA of $325 million – $330 million (previously $325 million – $335 million).

Jack In The Box shares closed at $53.07 on Tuesday.

These analysts made changes to their price targets on Jack In The Box after the company reported quarterly results.

• Wedbush cut the price target on Jack In The Box from $78 to $68. Wedbush analyst Nick Setyan maintained an Outperform rating.
• TD Cowen slashed Jack In The Box price target from $73 to $59. TD Cowen analyst Andrew Charles maintained a Hold rating.
• B of A Securities slashed the price target on Jack In The Box from $87 to $83. B of A Securities analyst Sara Senatore maintained a Buy rating.
• Morgan Stanley lowered the price target on Jack In The Box from $75 to $70. Morgan Stanley analyst John Glass maintained an Equal-Weight rating.

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