Back to top

Image: Bigstock

Jack in the Box (JACK) to Post Q1 Earnings: What's in Store??

Read MoreHide Full Article

Jack in the Box Inc. (JACK - Free Report) is scheduled to report first-quarter fiscal 2021 results on Feb 17, after market close. In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 41.2% and 2.5%, respectively.

How Are Estimates Placed?

The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $1.72 per share, indicating an increase of 47% from $1.17 recorded in the year-ago quarter. For revenues, the consensus mark is pegged at $333.8 million, suggesting an 8.5% increase from the year-ago figure of $307.7 million.

Factors to Note

Jack in the Box’s first-quarter revenue performance is likely to have benefited from strong same-store sales on average check growth. The company is also likely to have gained from robust digitalization. Its partnerships with DoorDash, Postmates, Grubhub and Uber Eats bode well. It is also expanding its mobile application in a few markets that support order-ahead functionality and payment. Notably, delivery sales, which more than doubled in fourth-quarter fiscal 2021 on the back of high mobile application usage, are likely to have increased.

Notably, the company is focusing on food packaging and portability that contributed to customer growth and repetitive guest ordering. Expanding its mobile application network and social media marketing, the company is entering a few unexplored markets.

The Zacks Consensus Estimate for franchise rental revenues, and franchise and royalties and other are pegged at $99 million and $58 million, indicating year-over-year growth of 16.5% and 9.4%, respectively. The consensus estimate for the restaurant revenue is pegged at $116 million, suggesting a rise of 10.5% from the year-ago figure.

Jack In The Box Inc. Price and EPS Surprise

 

Jack In The Box Inc. Price and EPS Surprise

Jack In The Box Inc. price-eps-surprise | Jack In The Box Inc. Quote

However, high costs for delivery fees and supplies related to various sales-boosting initiatives during COVID-19, labor inflation and rise in commodity cost are expected to have negatively impacted margins.

What the Zacks Model Unveils

Our proven model conclusively 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.

Earnings ESP: Jack in the Box has an Earnings ESP of +5.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: It currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combination

Here are a few other stocks from the Zacks Retail - Restaurants space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:

Darden Restaurants, Inc. (DRI - Free Report) has a Zacks Rank #3 and an Earnings ESP of +35.49%.

Wingstop Inc. (WING - Free Report) has an Earnings ESP of +15.17% and a Zacks Rank #3.

Bloomin' Brands, Inc. (BLMN - Free Report) has a Zacks Rank #3 and an Earnings ESP of +6.25%.

The Hottest Tech Mega-Trend of All                

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Published in