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Jul 07, 2024

Jack in the Box Q3 2024 Earnings Report

Jack in the Box Inc. reported a net loss due to a goodwill impairment charge for Del Taco, despite operational improvements and strategic initiatives.

Key Takeaways

Jack in the Box Inc. announced third-quarter results with a diluted loss per share of ($6.26), impacted by a $162.6 million non-cash goodwill impairment charge for Del Taco. Operating EPS was $1.65. Systemwide sales decreased for both Jack in the Box and Del Taco brands. The company is focusing on value, innovation, and late-night offerings to improve transactions and drive momentum into 2025.

Jack in the Box same-store sales decreased by 2.2%.

Del Taco same-store sales decreased by 3.9%.

Diluted loss per share was ($6.26), including a $162.6 million non-cash goodwill impairment charge for Del Taco.

Operating EPS was $1.65.

Total Revenue
$369M
Previous year: $397M
-7.0%
EPS
$1.65
Previous year: $1.45
+13.8%
Company Same-Store Sales
0.1%
Previous year: 6.9%
-98.6%
Franchise Same-Store Sales
-2.4%
Previous year: 8%
-130.0%
System Same-Store Sales
-2.2%
Previous year: 7.9%
-127.8%
Gross Profit
$96.5M
Previous year: $120M
-19.3%
Cash and Equivalents
$21.6M
Previous year: $182M
-88.1%
Free Cash Flow
$20.6M
Previous year: $68.5M
-69.9%
Total Assets
$2.75B
Previous year: $2.95B
-7.0%

Jack in the Box

Jack in the Box

Jack in the Box Revenue by Segment

Forward Guidance

Jack in the Box Inc. provided updated guidance for the fiscal year ending September 29, 2024, including Adjusted EBITDA of $320-$325 million and Operating EPS of $6.10-$6.25. The company also offered segment-specific guidance for Jack in the Box and Del Taco.

Positive Outlook

  • Adjusted EBITDA of $320-$325 million
  • Operating EPS of $6.10-$6.25
  • Jack in the Box Same Store Sales of approximately (1.0%)
  • Company-Owned Restaurant Level Margin of approximately 22%
  • Del Taco Same Store Sales of approximately (1.5%)

Challenges Ahead

  • SG&A (excluding COLI gains/losses) of approximately $160 million
  • Jack in the Box Same Store Sales of approximately (1.0%)
  • Del Taco Same Store Sales of approximately (1.5%)
  • Company-Owned Restaurant Level Margin of approximately 22%
  • Company-Owned Restaurant Level Margin of approximately 14%

Revenue & Expenses

Visualization of income flow from segment revenue to net income