Fast-food chain Jack in the Box (NASDAQ: JACK) will be reporting results this Wednesday after market close. Here’s what you need to know.
Jack in the Box missed analysts’ revenue expectations last quarter, reporting revenues of $349.5 million, down 5.8% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a 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 decline 3.5% year on year, improving from the 27.3% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. El Pollo Loco delivered year-on-year revenue growth of 5.9%, beating analysts’ expectations by 3.2%, and Starbucks reported revenues up 8.8%, topping estimates by 4.3%. El Pollo Loco traded up 3.8% following the results while Starbucks was also up 8.4%.
Read our full analysis of El Pollo Loco’s results here and Starbucks’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 17.5% during the same time and is heading into earnings with an average analyst price target of $21.24 (compared to the current share price of $13.38).
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