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Jack in the Box to Post Q2 Earnings: What's in Store for the Stock?

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Jack in the Box (JACK - Free Report) is scheduled to report second-quarter fiscal 2025 results on May 14, after the closing bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 12.3%.

How are Q2 Estimates Placed for JACK?

The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.13 per share, indicating a decline of 22.6% from $1.46 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $341.2 million. The metric implies a 6.6% decline from the year-ago quarter’s figure. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

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

Factors at Play for JACK’s Q2 Results

Jack in the Box’s fiscal second-quarter performance is likely to have been hurt by dismal traffic and macroeconomic pressures. Closures of underperforming stores are also likely to have hurt the top line. During the first-quarter fiscal 2025 conference call, the company said that it is currently trending negative for the quarter to date and anticipates a decline in same-store sales in second-quarter fiscal 2025.

Del Taco is also expected to have delivered negative same-store sales in the second quarter. However, there are early signs of progress from its menu optimization initiative, which was implemented systemwide midway through the first quarter. This effort has begun to yield positive results, contributing to improved attach rates and higher average check values.

The consensus estimate for JACK’s company-owned same-store sales is pegged at a decline of 3.5%, whereas Del Taco’s company-owned same-store sales are likely to witness a decline of 2.8%.

On the other hand, menu innovation and new market expansion bode well. This and enhancements in marketing and restaurant technology stack are likely to have aided restaurant-level economics in the to-be-reported quarter. Emphasis on digital innovation bodes well.

What Does the Zacks Model Say for JACK?

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 exactly 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 +1.96% and a Zacks Rank #3.

Other Stocks With Favorable Combination

Here we present a few other stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this season.

Monster Beverage (MNST - Free Report) currently has an Earnings ESP of +0.54% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company is expected to register growth in both top and bottom lines when it reports first-quarter 2025 results. The Zacks Consensus Estimate for MNST’s quarterly earnings has been stable in the past 30 days at 46 cents per share, indicating 9.5% growth from the year-ago quarter's number. The consensus estimate for Monster Beverage’s quarterly revenues is pegged at almost $2 billion, implying a rise of 3.7% from the figure reported in the prior-year quarter. MNST reported a negative earnings surprise of 5.8%, on average, in the trailing four quarters.
 
Dollar General Corporation (DG - Free Report) presently has an Earnings ESP of +4.30% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter fiscal 2025 earnings per share is pegged at $1.46, implying an 11.5% year-over-year decline.

Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $10.26 billion, which indicates an increase of 3.5% from the figure reported in the prior-year quarter. DG delivered a trailing four-quarter earnings surprise of 1.2%, on average.

Casey's General Stores, Inc. (CASY - Free Report) currently has an Earnings ESP of +5.05% and a Zacks Rank #3. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings per share is pegged at $1.93, calling for a 17.5% year-over-year decline.

Casey's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.97 billion, which indicates an increase of 10.3% from the figure reported in the prior-year quarter. CASY delivered a trailing four-quarter earnings surprise of 22.7%, on average.

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