NASDAQ$JACK

Jack in the Box Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Jack in the Box Inc. reported strong sales and positive net unit growth.

Jack in the Box Inc. announced positive financial results for Q2 2023, with same-store sales increasing for both Jack in the Box and Del Taco. The company's focus on strategic execution and expansion efforts, including a new agreement for expansion into Mexico, drove the positive results. Management updated the FY 2023 guidance and outlook, reflecting confidence in continued strength in the back half of the year.

  • Jack in the Box same-store sales increased by 9.5%, and Del Taco same-store sales increased by 3.2%.
  • Systemwide sales growth was strong for both Jack in the Box at 9.8% and Del Taco at 3.2%.
  • Diluted EPS reached $1.27, and Operating EPS was $1.47.
  • The company signed development agreements for 33 future restaurants, including expansion into Mexico.

Headline financials

Total Revenue

$396M

Previous: $322M+22.8%
EPS (adj)

$1.47

Previous: $1.16+26.7%
Company same-store sales change

10.8%

Previous: 1.7%+535.3%
Franchise same-store sales change

9.4%

Previous: -1.1%+954.5%
System same-store sales change

9.5%

Previous: -0.8%+1287.5%
Capital Expenditures

-$37.2M

Previous: -$20.8M-79.0%
Free Cash Flow

-$10.7M

Previous: -$13M+17.7%
Net Income

$26.5M

Previous: $7.8M+240.0%
Operating Income

$61.6M

Previous: $38.2M+61.2%
Gross Profit

$271M

Previous: $225M+20.9%
Cash & Equivalents

$94.9M

Previous: $55.7M+70.3%
Total Assets

$2.9B

Previous: $2.82B+2.8%
Stock-Based Comp

$2.4M

Previous: $2.92M-17.8%

Revenue & EPS history

Jack in the Box · Revenue · Quarterly

$396M

Q2 2023+22.8%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Jack in the Box · $396M total across 4 segments · Q2 2023

  • Company restaurant sales
    $203M+33.9%
  • Franchise rental revenues
    $83.5M+9.1%
  • Franchise contributions for advertising and other services
    $55.6M+17.6%
  • Franchise royalties and other
    $54M+14.6%

Forward guidance

The company updated its FY 2023 guidance, reflecting expectations for commodity and wage inflation, operating EPS, and same-store sales growth for both Jack in the Box and Del Taco.

Tailwinds

  • Jack in the Box expects positive net unit growth in FY 2023, led by 25-30 gross openings.
  • Del Taco expects positive net unit growth in FY 2023, led by 8-12 gross openings.
  • Jack in the Box Franchise Level Margin is expected to be 41-42%.
  • The company now plans to execute at least $70 million in share repurchases in FY 2023.
  • FY 2023 Operating EPS Guidance of $5.90-$6.10

Headwinds

  • SG&A Guidance of $170-180 million due to higher incentive-based compensation, as well as a year-to-date net legal charge of $5.0 million related to two litigation matters
  • Jack in the Box Restaurant Level Margin is impacted negatively by 125bps due to the remaining Evolving Markets
  • Del Taco Restaurant Level Margin includes the impact from refranchising
  • Del Taco Franchise Level Margin includes the impact from refranchising
  • FY 2023 Company-owned Commodity Guidance up 8-10% vs. 2022

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-3.5%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+20.0%

Q3 2019

Best reaction

-18.1%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-14.3%-10.6%+4.5%
Q1 2026-18.1%-20.9%-50.0%
Q4 2025+7.9%+35.3%+35.0%
Q2 2025-6.6%-14.3%-28.7%
Q1 2025+11.8%+5.5%-19.2%
Q4 2024+3.8%+4.2%-11.5%
Q3 2024-2.7%+1.3%-12.6%
Q2 2024+0.6%-0.4%+4.1%
Q1 2024-4.6%-4.0%-8.7%
Q4 2023+2.5%+0.6%+20.3%
Q3 2023-6.9%-10.3%-16.9%
Q2 2023-0.5%-3.5%-4.8%
Q1 2023+12.1%+11.3%+11.7%
Q4 2022-15.3%-14.7%-20.3%
Q3 2022+12.5%+17.8%+8.3%
Q2 2022-5.5%-3.7%-16.5%
Q1 2022-3.6%-2.8%+0.9%
Q4 2021-6.6%-8.2%-11.4%
Q3 2021-3.6%-4.9%+0.0%
Q2 2021-6.7%-5.1%-2.6%
Q1 2021-1.2%-1.9%+15.5%
Q4 2020+4.2%+4.1%+5.5%
Q3 2020-2.9%-7.0%-2.0%
Q2 2020-0.5%-3.1%+7.8%
Q1 2020-0.6%-1.5%-73.2%
Q4 2019-5.1%-8.1%-8.6%
Q3 2019+20.0%+20.9%+21.6%
Q2 2019+1.9%+5.9%+10.5%
Q1 2019-2.1%-1.5%-4.6%
Q4 2018+4.9%+8.6%-0.3%
Q3 2018+8.2%+3.9%+1.9%
Q2 2018-7.3%-8.6%-4.6%
Q1 2018+1.7%+2.1%-4.9%
Q4 2017+1.0%+4.1%-4.2%
Q3 2017+0.8%+3.3%-2.7%
Q2 2017+8.1%+4.5%+6.7%
Q1 2017-9.9%-11.7%-6.7%
Q4 2016+6.0%+5.9%+9.5%
Q3 2016+9.6%+9.4%+14.7%
Q2 2016+9.1%
Q1 2016-13.9%
Q4 2015+5.0%
Q3 2015-5.5%
Q2 2015-4.4%
Q1 2015+8.7%
Q4 2014+6.6%
Q3 2014+6.4%
Q2 2014-0.2%
Q1 2014+9.5%
Q4 2013+6.2%
Q3 2013+3.6%
Q2 2013-3.3%
Q1 2013+3.4%
Q4 2012+4.6%
Q3 2012-2.0%
Q2 2012+4.2%
Q1 2012-2.2%
Q4 2011-4.8%
Q4 2010-4.8%
Q3 2011+6.4%
Q2 2011+4.8%
Q1 2010-5.0%
Q1 2011+1.0%
Q2 2010-0.9%
Q4 2008-0.9%
Q4 2009-6.7%
Q3 2009-6.7%
Q3 2010-6.7%

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