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Apr 17, 2022
Jack in the Box Q2 2022 Earnings Report
Jack in the Box Inc. reported mixed Q2 2022 results, with systemwide sales growth offset by same-store sales decline, and welcomed Del Taco to the Jack in the Box family.
Key Takeaways
Jack in the Box Inc. announced its Q2 2022 financial results, which included the acquisition of Del Taco. Systemwide sales increased for both Jack in the Box and Del Taco, but Jack in the Box experienced a same-store sales decrease. The company is finalizing sale leasebacks and refranchising to accelerate return of cash to shareholders.
Jack in the Box systemwide sales grew by 0.1%, while Del Taco's increased by 2.9%.
Jack in the Box same-store sales decreased by 0.8%, but showed a two-year growth of 19.8%.
Del Taco same-store sales increased by 2.5%, with a two-year growth of 22.3%.
The company is working to finalize sale leasebacks and refranchising efforts to return cash to shareholders.
Jack in the Box
Jack in the Box
Jack in the Box Revenue by Segment
Revenue by Segment
Company Restaurant Sales Revenue
CapyFin.comFranchise Rental Revenues Revenue
CapyFin.comFranchise Royalties and Other Revenue
CapyFin.comFranchise Advertising Contributions Revenue
CapyFin.com Forward Guidance
The company provided FY 2022 guidance, including company-wide operating EPS of $5.80 to $6.10 and same-store sales guidance for Jack in the Box and Del Taco, but all guidance and outlook measures related specifically to Del Taco will debut in 2023.
Positive Outlook
- Company-wide Operating EPS Guidance of $5.80 to $6.10 for FY 2022.
- Jack in the Box: Flat to +1.0% same-store sales for FY 2022
- Del Taco +3.0% to +4.0% same-store sales for FY 2022
- Company-wide CapEx & Other Investments Guidance, including Del Taco, now $75-80 million
- Jack in the Box Commodity Guidance now up 12-14% vs. 2021
Challenges Ahead
- Company-wide SG&A Guidance, including Del Taco, now $120-130 million (Excludes net COLI gains/losses)
- Jack in the Box Commodity Guidance now up 12-14% vs. 2021
- Jack in the Box Company-owned Wage Rate Guidance now up 12-13% vs. 2021
- Overall Restaurant Level Margin is now expected to be ~17%
- All guidance and outlook measures related specifically to Del Taco will debut in 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income