Jack in the Box Reports Earnings; Updates Guidance
Wednesday afternoon, May 14, 2014, Jack in the Box (NASDAQ: JACK) reported its second quarter full year 2014 earnings and updated its guidance for the full year of 2014.
Shares of the fast food giant, JACK, are down 0.94 percent or $0.51 per share in after-hours trading.
The company reported earnings from continuing operations at $18.3 million, or $0.43 per diluted share, this compares to $15.1 million or $0.33 per share, for the same period a year ago.
Lenny Comma, chairman and chief executive officer, said, “Overall, our second quarter results were solid, with a 38 percent increase in operating earnings per share resulting from better than expected same-store sales growth at Qdoba Mexican Grill®, margin expansion and lower overhead, which overcame a shortfall in sales at Jack in the Box®.”
“Jack in the Box company same-store sales increased 0.9 percent for the quarter, as sales trends softened in the last half of the quarter, when we saw an increase in messaging around value promotions from our competitors,” Comma said. “Importantly, both late-night and breakfast dayparts remained strong, and sales have rebounded through the first four weeks of our third quarter. While our same-store sales performance at Jack in the Box was lower than our expectations, system same-store sales growth for the quarter of 0.7 percent exceeded that of the QSR sandwich segment by 1.2 percentage points for the comparable period, according to The NPD Group's SalesTrack® Weekly for the 12-week time period ended April 13, 2014. Included in this segment are 14 of the top QSR sandwich and burger chains in the country."
In addition, the company repurchased about 2.1 million shares in the second quarter of 2014 at an average price of $59.54, which equates to $125.0 million. The company will continue to repurchase shares that the company's Board of Directors had approved in February of 2014.
Additionally, the company announced that its Board of Directors has approved a regular quarterly cash dividend of $0.20 per share.
The fast food chain continued to update its guidance, and said the following for the third quarter of 2014.
Same-store sales are expected to increase approximately 2.0 to 3.0 percent at Jack in the Box company restaurants versus a 1.2 percent increase in the year-ago quarter.
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