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Jack in the Box (JACK) to Post Q2 Earnings: What's in Store?

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Jack in the Box (JACK - Free Report) is scheduled to report second-quarter fiscal 2024 results on May 14, before the opening bell. In the last reported quarter, the company’s earnings matched the Zacks Consensus Estimate of $1.95.

How are Estimates Placed?

The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.43 per share, indicating a decline of 2.7% from $1.47 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $369.7 million. The metric suggests a 6.6% decline from the year-ago quarter’s figure.

Let's take a look at how things have shaped up in the quarter.

Factors at Play

Jack in the Box’s fiscal second-quarter performance is likely to have benefited from menu innovation, focus on delivery channels and marketing strategies. This and strategic investments in store improvements and new store build are likely to have aided restaurant-level economics in the to-be-reported quarter.

The company is focused on addressing opportunities within the breakfast segment, including reintroducing previously removed items. Efforts to enhance breakfast market share involve integrating breakfast into regular marketing activities, introducing innovative breakfast offerings, and experimenting with new promotions, primarily through digital platforms, to attract and re-engage customers. The initiatives are anticipated to have positively influenced the company's performance in the fiscal second quarter.

However, soft restaurant contributions due to a decline in transactions and menu mix are likely to have negatively influenced the top line in the fiscal second quarter. Our model predicts restaurant sales and franchise royalties & other revenues to depreciate 13% and 2.4% year over year to $176.2 million and $52.7 million, respectively.

Wage inflation and increases in food and packaging costs and utilities are discouraging. The headwinds are likely to have affected the company’s fiscal second-quarter bottom line on a year-over-year basis.

What Our Model Says

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.

Earnings ESP: Jack in the Box has an Earnings ESP of +0.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Retail-Wholesale Releases

Yum China Holdings, Inc. (YUMC - Free Report) reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. The upside can be attributed to robust total system sales growth and new unit contribution.

During the quarter, YUMC reported adjusted earnings per share (EPS) of 71 cents, beating the Zacks Consensus Estimate of 66 cents. The bottom line moved up 2.9% from 69 cents reported a year ago. Quarterly revenues of $2.96 billion outpaced the consensus mark of $2.94 billion. The top line inched up 1% on a year-over-year basis. Excluding foreign currency translation, revenues increased 7% year over year.

Chipotle Mexican Grill, Inc. (CMG - Free Report) released stellar first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis. During the quarter, the company reported benefits from enhanced throughput and effective marketing initiatives like Braised Beef Barbacoa and Chicken Al Pastor, leading to strong sales and transaction growth. CMG stated that the momentum continued into April.

During the quarter, CMG reported adjusted EPS of $13.37, outpacing the Zacks Consensus Estimate of $11.63. The bottom line increased 27.3% from $10.50 reported in the year-ago quarter. Quarterly revenues of $2.7 billion surpassed the consensus mark of $2.68 billion by 1%. The top line rose 14.1% on a year-over-year basis on the back of strong comparable restaurant sales growth and new restaurant openings.

McDonald's Corporation (MCD - Free Report) posted mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and the bottom line increased on a year-over-year basis.

During the quarter, MCD reported McDonald's reported adjusted EPS of $2.70, missing the Zacks Consensus Estimate of $2.71. EPS increased 2% year over year. Quarterly net revenues of $6,169 million beat the consensus mark of $6,168 million. The top line rose 5% year over year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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