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Jack in the Box (JACK) to Post Q3 Earnings: What's in Store?
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Jack in the Box Inc. (JACK - Free Report) is scheduled to report third-quarter 2023 results on Aug 9, 2023, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 22.5% and 3.4%, respectively. Earnings and revenues increased 26.7% and 23% from the year-ago quarter’s figures, respectively.
JACK surpassed earnings estimates twice in the trailing four quarters and missed on the other two occasions, the average surprise being 7.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $1.33, indicating a decline of 3.6% from $1.38 reported in the year-ago quarter.
The consensus mark for revenues is pegged at $394 million, suggesting a decrease of 1% from the prior-year quarter’s reported figure.
Factors to Note
Jack in the Box’s fiscal third-quarter performance is likely to have benefited from digital initiatives, expansion efforts and reimaging program. This and its focus on the barbell menu strategy and elevated market pricing model are likely to have aided the company’s performance in the to-be-reported quarter.
The emphasis on improving the omnichannel guest experience (with quality products and services) and the increase in orders through third-party delivery are catalysts for the company. The momentum is likely to be continued in the to-be-reported quarter.
Our model predicts both restaurant sales and franchise royalties & other revenues to increase 3.9% year over year to $223.6 million and $54.1 million, respectively. We expect franchise rental revenues to decline 23.2% year over year to $61.5 million .
Rising commodity inflation, advertising cost and wage inflation are likely to have affected the company’s margins in the to-be-reported quarter. Per our model, food and packaging costs and expenses related to payroll & employee benefits will drop 2.5% and 3% year over year, respectively. We expect occupancy & other costs to increase 2.2% year over year.
What the Zacks Model Unveils
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. This is precisely 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 an Earnings ESP of +0.60% and carries a Zacks Rank #2.
Other Stocks With Favorable Combinations
Here are some other companies in the Zacks Retail and Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
TJX’s earnings for the to-be-reported quarter are expected to increase 10.1%. The company reported better-than-expected earnings in three of the trailing four quarters and remained flat once, the average surprise being 4.4%.
Arhaus, Inc. (ARHS - Free Report) currently has an Earnings ESP of +7.69% and sports a Zacks Rank #2.
ARHS’s earnings for the to-be-reported quarter are expected to decline 7.1%. The company reported better-than-expected earnings in all the trailing four quarters, the average surprise being 82.4%.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank of #3.
COST’s earnings for the to-be-reported quarter are expected to increase 12.4%. The company reported better-than-expected earnings in three of the trailing four quarters and missed the mark once, the average surprise being 1.8%.
Image: Bigstock
Jack in the Box (JACK) to Post Q3 Earnings: What's in Store?
Jack in the Box Inc. (JACK - Free Report) is scheduled to report third-quarter 2023 results on Aug 9, 2023, before the opening bell.
In the last reported quarter, the company’s earnings and revenues surpassed the Zacks Consensus Estimate by 22.5% and 3.4%, respectively. Earnings and revenues increased 26.7% and 23% from the year-ago quarter’s figures, respectively.
JACK surpassed earnings estimates twice in the trailing four quarters and missed on the other two occasions, the average surprise being 7.9%.
The Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings per share (EPS) is pegged at $1.33, indicating a decline of 3.6% from $1.38 reported in the year-ago quarter.
The consensus mark for revenues is pegged at $394 million, suggesting a decrease of 1% from the prior-year quarter’s reported figure.
Factors to Note
Jack in the Box’s fiscal third-quarter performance is likely to have benefited from digital initiatives, expansion efforts and reimaging program. This and its focus on the barbell menu strategy and elevated market pricing model are likely to have aided the company’s performance in the to-be-reported quarter.
The emphasis on improving the omnichannel guest experience (with quality products and services) and the increase in orders through third-party delivery are catalysts for the company. The momentum is likely to be continued in the to-be-reported quarter.
Our model predicts both restaurant sales and franchise royalties & other revenues to increase 3.9% year over year to $223.6 million and $54.1 million, respectively. We expect franchise rental revenues to decline 23.2% year over year to $61.5 million .
Rising commodity inflation, advertising cost and wage inflation are likely to have affected the company’s margins in the to-be-reported quarter. Per our model, food and packaging costs and expenses related to payroll & employee benefits will drop 2.5% and 3% year over year, respectively. We expect occupancy & other costs to increase 2.2% year over year.
What the Zacks Model Unveils
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. This is precisely 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 an Earnings ESP of +0.60% and carries a Zacks Rank #2.
Other Stocks With Favorable Combinations
Here are some other companies in the Zacks Retail and Wholesale sector which, according to our model, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
The TJX Companies, Inc. (TJX - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank of #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
TJX’s earnings for the to-be-reported quarter are expected to increase 10.1%. The company reported better-than-expected earnings in three of the trailing four quarters and remained flat once, the average surprise being 4.4%.
Arhaus, Inc. (ARHS - Free Report) currently has an Earnings ESP of +7.69% and sports a Zacks Rank #2.
ARHS’s earnings for the to-be-reported quarter are expected to decline 7.1%. The company reported better-than-expected earnings in all the trailing four quarters, the average surprise being 82.4%.
Costco Wholesale Corporation (COST - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank of #3.
COST’s earnings for the to-be-reported quarter are expected to increase 12.4%. The company reported better-than-expected earnings in three of the trailing four quarters and missed the mark once, the average surprise being 1.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.