SAN DIEGO - Jack in the Box Inc. (NASDAQ: NASDAQ:JACK) reported mixed financial results for its first quarter ended January 21, 2024, with earnings slightly missing analyst expectations while revenue surpassed forecasts. The company announced a diluted EPS of $1.93, which was $0.03 below the analyst estimate of $1.96. However, revenue for the quarter was $487.5 million, exceeding the consensus estimate of $480.76 million.
The company's same-store sales showed modest growth, with Jack in the Box same-store sales increasing by 0.8% and Del Taco same-store sales rising by 2.2%. This performance was driven by growth in average check, despite declines in transactions and negative weather impacts toward the end of the quarter. Systemwide, Jack in the Box sales grew by 1.8%, while Del Taco saw a slight increase of 0.1%.
On the operational front, Jack in the Box's restaurant-level margin improved to 23.1%, up 3.3% from the prior year, primarily due to commodity deflation and sales leverage. The company also expanded its footprint, signing development agreements to open new markets in Florida and Michigan.
CEO Darin Harris commented on the quarter's achievements, stating, "The first quarter included notable progress on our long-term strategy and objectives we laid out at our recent Investor Day. We were also pleased with the sales rebound for Del Taco, the outperformance of Jack in the Box restaurant level margin, and the completion of development agreements with new franchisees to open new markets."
Despite the positive revenue figures, the slight miss on EPS expectations led to a muted market response. The stock did not experience a significant movement post-earnings release, indicating that investors may be taking a wait-and-see approach to the company's future performance.
Looking ahead, Jack in the Box provided no new guidance, maintaining its previously disclosed outlook for the fiscal year ending September 29, 2024. Investors will be keeping an eye on the company's ability to sustain growth and improve profitability in a competitive fast-food market.
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