Jack In The Box Inc JACK reported a third-quarter 2023 sales decline of 0.35% year-on-year to $396.9 million, beating the analyst consensus estimate of $393.89 million.
The San Diego-based company's same-store sales increased 7.9% in the third quarter, comprised of an increase in company-operated same-store sales of 6.9% and an increase in franchise same-store sales of 8%. Systemwide sales for the quarter increased 8%.
Del Taco Systemwide sales increased 1.6% driven by positive results in both franchise and company-operated same-store sales. Same-store sales increased 1.2% in the quarter.
Selling, general and administrative expenses slipped 1% Y/Y to $39.6 million.
The operating margin was 16%, and operating income for the quarter rose 22.5% to $63.5 million.
Adjusted EBITDA was $79.4 million compared with $73.2 million in the prior year quarter.
Adjusted EPS of $1.45 beat the consensus estimate of $1.34.
On Aug. 4, the board declared a cash dividend of $0.44 per share, to be paid on Sept. 18, to shareholders of record on Sept. 6.
Jack In The Box also confirmed that a new CFO, Brian Scott, will join the company on Aug. 14.
The fast-food chain held $182 million in cash and equivalents as of July 9.
Outlook: Jack In The Box sees 2023 Operating EPS $5.90 - $6.10 versus the consensus of $6.12.
It plans to refranchise 90-120 Del Taco restaurants in FY 2023, up from previous guidance of 65-85 restaurants.
The company now plans to execute at least $80 million in share repurchases in FY23.
Price Action: JACK shares are trading lower by 3.90% at $90.05 on the last check Wednesday.
Image: Jack in the Box, Pixabay
Editor's Note: The story has been updated to correct a typo
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
