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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 2021 results on May 12, after market close. In the last reported quarter, the company delivered earnings surprise of 23.4%.

How are Estimates Placed?

The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.24 per share, indicating growth of 148% from 50 cents recorded in the year-ago quarter.

For revenues, the consensus mark is pegged at $249.2 million that suggests a 15.3% increase from the year-ago quarter’s figure.

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

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

 

Factors at Play

Jack in the Box’s fiscal second-quarter performance is likely to have reflected a rise in same-store sales on the back of new menu arrivals, re-introduction of products and strength in digital platform. Increased use of its mobile app for order placements coupled with initiatives regarding integration of POS systems with third-party vendors, are likely to have contributed to fiscal second-quarter top line.

Notably, the Zacks Consensus Estimate for company restaurant sales and franchise rental revenues is pegged at $85 million and $76 million suggesting year-over-year growth of 14.9% and 8.6%, respectively. The consensus mark for franchise royalties and other revenues is pinned at $42.7 million, which indicates growth of 13% from the year-ago quarter’s levels.

Moreover, increased focus on unit expansion, off-premise business, drive-thru enhancements as well as more aggressive brand marketing is likely to have driven performance in the fiscal second quarter.

However, rise in delivery and service fees and marketing expenses are likely to have hurt margins in the fiscal second quarter. This along with dismal footfall on account of the pandemic is likely to have affected the company’s performance in the to-be-reported quarter.

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 +4.18%. 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.

Peer Releases

Yum! Brands, Inc. (YUM - Free Report) reported strong first-quarter 2021 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The metrics increased year over year. The company’s adjusted earnings of $1.07 beat the Zacks Consensus Estimate of 85 cents. In the prior-year quarter, the company had reported adjusted earnings of 64 cents. Quarterly revenues of $1,486 million surpassed the consensus estimate of $1,461 million. The top line also rose 17.7% year over year. The upside can be attributed to increase in sales along with rise in franchise and property revenues.

McDonald's Corporation (MCD - Free Report) reported first-quarter 2021 results, with earnings and revenues outpacing the Zacks Consensus Estimate. The company reported adjusted earnings of $1.92 per share, which surpassed the Zacks Consensus Estimate of $1.81. Moreover, the bottom line rose 31% year over year. Quarterly revenues of $5,124.6 million beat the Zacks Consensus Estimate of $5,047 million. Moreover, the figure rose 9% year over year. The top line benefited from increase in global comparable sales.

Starbucks Corporation (SBUX - Free Report) reported second-quarter fiscal 2021 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The company reported adjusted EPS of 62 cents, which beat the Zacks Consensus Estimate of 52 cents. In the prior-year quarter, the company had reported adjusted EPS of 32 cents. Meanwhile, quarterly revenues of $6,668 million missed the Zacks Consensus Estimate of $6,803 million. However, the top line increased 11.2% from the year-ago quarter’s levels. The uptick was driven by growth in comparable store sales, partially offset by the unfavorable impact of Global Coffee Alliance transition-related activities.

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