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Apr 16, 2023
Jack in the Box Q2 2023 Earnings Report
Jack in the Box Inc. reported strong sales and positive net unit growth.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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