We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Jack in the Box (JACK) Poised to Ride on Growth Trajectory?
Read MoreHide Full Article
Jack in the Box Inc. (JACK - Free Report) is benefiting from solid performance of Tiny Taco, menu innovation and digitalization. Despite the coronavirus pandemic, the company’s shares have gained 19.8% in the past year, compared with the industry’s rally of 9.8%. In fact, prospects are looking even brighter for 2021. Over the past 60 days, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 13.6% to $5.6. Moreover, the Zacks Rank #1 (Strong Buy) companies have an impressive long-term earnings growth rate of 10.6%. Let’s delve deeper and find out factors driving growth.
Jack in the Box Vs Industry Scorecard
Growth Triggers
The company comps is gaining from increase in average check. Comps at Jack in the Box’s stores increased 9.6% in the fiscal fourth quarter compared with 4.1 and 2.8% growth in the fiscal third and second quarter of 2020, respectively. This upside can be attributed to average check growth of 21.9%. However, transactions declined 12.3% in the quarter. Same-store sales at franchised stores climbed 12.4% compared with increase of 3% in the prior-year quarter. Meanwhile, system-wide same-store sales increased 12.2% compared with growth of 3% in the year-ago quarter.
Jack in the Box is also increasingly focusing on delivery channels, which is a growing area for the industry. Given the high demand for this service, the company has undertaken third-party delivery channels to bolster transactions and sales. It has partnered with DoorDash, Postmates, Grubhub and Uber Eats. It is expanding its mobile application in a few markets that support order-ahead functionality and payment. Notably, delivery sales have more than doubled in the quarter on the back of high mobile application usage.
It is one of the largest hamburger chains in the country. The company makes regular menu innovations and provides limited period offers (LPO) at both its flagship restaurants to drive long-term customer loyalty. Notably, sales in the fourth quarter were primarily driven by solid performance of Tiny Taco, homestyle chicken sandwich and Classic Buttery Jack. It not only regained trust of its customers but also witnessed repetitive guest ordering.
Del Taco Restaurants has a three-five year earnings per share growth rate of 15%.
Arcos Dorados and Yum! Brands’ 2021 earnings are expected to rise 127.3% and 12.1%, respectively.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Bigstock
Is Jack in the Box (JACK) Poised to Ride on Growth Trajectory?
Jack in the Box Inc. (JACK - Free Report) is benefiting from solid performance of Tiny Taco, menu innovation and digitalization. Despite the coronavirus pandemic, the company’s shares have gained 19.8% in the past year, compared with the industry’s rally of 9.8%. In fact, prospects are looking even brighter for 2021. Over the past 60 days, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 13.6% to $5.6. Moreover, the Zacks Rank #1 (Strong Buy) companies have an impressive long-term earnings growth rate of 10.6%. Let’s delve deeper and find out factors driving growth.
Jack in the Box Vs Industry Scorecard
Growth Triggers
The company comps is gaining from increase in average check. Comps at Jack in the Box’s stores increased 9.6% in the fiscal fourth quarter compared with 4.1 and 2.8% growth in the fiscal third and second quarter of 2020, respectively. This upside can be attributed to average check growth of 21.9%. However, transactions declined 12.3% in the quarter. Same-store sales at franchised stores climbed 12.4% compared with increase of 3% in the prior-year quarter. Meanwhile, system-wide same-store sales increased 12.2% compared with growth of 3% in the year-ago quarter.
Jack in the Box is also increasingly focusing on delivery channels, which is a growing area for the industry. Given the high demand for this service, the company has undertaken third-party delivery channels to bolster transactions and sales. It has partnered with DoorDash, Postmates, Grubhub and Uber Eats. It is expanding its mobile application in a few markets that support order-ahead functionality and payment. Notably, delivery sales have more than doubled in the quarter on the back of high mobile application usage.
It is one of the largest hamburger chains in the country. The company makes regular menu innovations and provides limited period offers (LPO) at both its flagship restaurants to drive long-term customer loyalty. Notably, sales in the fourth quarter were primarily driven by solid performance of Tiny Taco, homestyle chicken sandwich and Classic Buttery Jack. It not only regained trust of its customers but also witnessed repetitive guest ordering.
Other key Picks
Some better-ranked stocks in the same space are Del Taco Restaurants, Inc. , Arcos Dorados Holdings Inc. (ARCO - Free Report) and Yum! Brands, Inc. (YUM - Free Report) , each carrying a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Del Taco Restaurants has a three-five year earnings per share growth rate of 15%.
Arcos Dorados and Yum! Brands’ 2021 earnings are expected to rise 127.3% and 12.1%, respectively.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>