Fast-food chain Jack in the Box (NASDAQ: JACK) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
Jack in the Box missed analysts’ revenue expectations last quarter, reporting revenues of $254.3 million, down 4.3% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance topping analysts’ expectations but a slight miss of analysts’ same-store sales estimates.
Is Jack in the Box a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Jack in the Box’s revenue to be flat year on year, improving from the 28.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Jack in the Box’s peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Starbucks’s revenues decreased 1.4% year on year, beating analysts’ expectations by 1.5%, and Dutch Bros reported revenues up 32.5%, topping estimates by 4.7%. Starbucks traded up 1.6% following the results while Dutch Bros was down 18.7%.
Read our full analysis of Starbucks’s results here and Dutch Bros’s results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices flat over the last month. Jack in the Box is up 16.3% during the same time and is heading into earnings with an average analyst price target of $16.35 (compared to the current share price of $17.59).
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