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What's in Store for Jack in the Box's (JACK) Q2 Earnings?

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Jack in the Box Inc. (JACK - Free Report) is scheduled to report second-quarter fiscal 2022 results on May 26. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 2.6%.

Q2 Expectations

The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.36, lower than $1.48 reported in the prior-year quarter. Over the past 30 days, the company’s earnings estimates have remained stable. The consensus mark for revenues stands at $262.3 million, suggesting growth of 2% from the year-ago quarter.

Factors to Note

Jack in the Box’s fiscal second-quarter performance is likely to have benefited from regular menu innovation, increased focus on delivery channels and marketing strategies. Average check growth and transactions might have contributed to the company’s performance in the quarter to be reported.

The Zacks Consensus Estimate for company restaurant sales and franchise rental revenues is pegged at $101 million, suggesting year-over-year growth of 17.4%. The consensus mark for franchise royalties and other revenues stands at $46.8 million, which indicates a decline of 0.8% from the year-ago quarter.

Increased focus on unit expansion, off-premise business, drive-thru enhancements and aggressive brand marketing may have driven performance in the fiscal second quarter.

However, the rise in labor and commodity costs might have weighed on margins in the quarter to be reported. The company anticipates operating margin pressures due to labor and supply chain challenges to persist for the remainder of fiscal 2022. The increase in the price of beef, pork, sauces and oil has been hurting the company.

What Does the Zacks Model Say

Our proven model does not conclusively predict 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. But that's not the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Jack in the Box has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks Poised to Beat Estimates

Here are some stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these have the right combination of elements to beat on earnings this season:

Designer Brands Inc. (DBI - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Designer Brands have declined 23.2% in the past year. DBI’s earnings topped the consensus mark in each of the trailing four quarters. The company has a trailing four-quarter earnings surprise of 112.8%, on average.

Casey's General Stores, Inc. (CASY - Free Report) has an Earnings ESP of +7.07% and a Zacks Rank #3.

Shares of Casey's have declined 9.5% in the past year. CASY’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 21.6%.

AutoZone, Inc. (AZO - Free Report) has an Earnings ESP of +2.54% and a Zacks Rank #3.

Shares of AutoZone have gained 22.3% in the past year. AZO’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 25.9%, on average.

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

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