Shares of Jack in the Box Inc. sank 8.2% in premarket trading Tuesday, after the burger chain reported fiscal fourth-quarter results that beat expectations but provided a downbeat full-year outlook, amid continued headwinds from the inflationary impact on margins. Net income for the quarter to Oct. 2 rose to $45.9 million, or $2.17 a share, from $38.9 million, or $1.80 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.36. Revenue grew 44.6% to $402.8 million, above the FactSet consensus of $392.0 million. Same-store sales rose 4.0%, as a higher average check, as increased pricing and traffic to company-operated restaurants offset a decrease in traffic for franchise. Restaurant margin fell to 16.2% from 20.1%, as wage inflation of 11.3% and increases in utilities and maintenance costs offset menu price increases. For fiscal 2023, the company expects EPS of $5.25 to $5.65, compared with the FactSet consensus of $6.59. The stock has lost 4.0% over the past three months through Monday, while the shares of rival burger chain McDonald's Corp. has gained 4.4% and the Dow Jones Industrial Average has tacked on 1.9%.
(END) Dow Jones Newswires
November 22, 2022 08:52 ET (13:52 GMT)
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