Yahoo Finance What's in Store for Jack in the Box (JACK) in Q1 Earnings?
Jack in the Box Inc. JACK is scheduled to report first-quarter fiscal 2023 results on Mar 1. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 1.5%.
Q1 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.74 per share, lower than $1.97 reported in the prior-year quarter. Over the past seven days, the company’s earnings estimates have remained stable. The Zacks Consensus Estimate for revenues is pegged at $505.9 million, suggesting growth of 46.8% from the year-ago quarter.
Factors to Note
JACK’s top line is likely to have benefited from robust digitalization, menu innovation and sales-building efforts. The company continues to benefit from average check growth. An increase in company restaurant sales, franchise rental revenues and franchise royalties is likely to have aided the top line.
We expect restaurant sales, franchise rental revenues and franchise royalties to increase 98.8%, 9.6% and 19.9% year over year to $238.7 million, $113 million and $69.1 million, respectively. Increased focus on unit expansion, off-premise business, drive-thru enhancements and aggressive brand marketing may have driven performance in the to-be-reported quarter.
However, a rise in food and packaging costs, wage inflation, higher utilities and, maintenance and repair costs are expected to have weighed on margins in the quarter to be reported. We expect restaurant-level margin to be 15.5% compared with 18.3% reported in the prior-year quarter.
What Does the Zacks Model Say?
Our proven model predicts an earnings beat for Jack in the Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Jack in the Box has an Earnings ESP of +0.63% and a Zacks Rank #3.
Other Stocks Poised to Beat Estimates
Here are some other stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these too have the right combination of elements to beat on earnings this season:
Dine Brands Global, Inc. DIN has an Earnings ESP of +4.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Dine Brands have declined 6.9% in the past year. DIN’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 10.6%, on average.
Casey's General Stores, Inc. CASY has an Earnings ESP of +14.04% and a Zacks Rank #3.
Shares of Casey's have gained 13.1% in the past year. CASY’s earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 7.2%.
Shake Shack Inc. SHAK currently has an Earnings ESP of +1.63% and a Zacks Rank #3.
Shares of Shake Shack have declined 24.3% in the past year. SHAK’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 39.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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