Jack in the Box stock dives after profit miss, surprise same-store sales drop

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Shares of Jack in the Box Inc. JACK, +3.50% dove 11.2% toward a 2-year low in premarket trading Thursday, after the fast-food restaurant chain reported a fiscal second-quarter profit miss, a surprise decline in same-store sales and a downbeat full-year earnings outlook, citing continued “inflationary pressure” facing the industry. Net income dropped to $7.8 million, or 37 cents a share, from $35.9 million, or $1.58 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share slipped to $1.16 from $1.40 and missed the FactSet consensus of $1.33. Revenue grew 25.3% to $322.3 million, above the FactSet consensus of $273.8 million. But systemwide same-store sales fell 0.8% to miss expectations of 1.4% growth, as a 1.7% rise in company-operated same-store sales was offset by a 1.1% decline in franchise same-store sales, with decreases in traffic only partially offset by increases in average check. Expenses jumped 47.7% to $284.1 million, with food and packaging costs surging 95.8% and payroll and employee benefits costs climbing 92.5%. For fiscal 2022, the company expects adjusted EPS of $5.80 to $6.10, below the FactSet consensus of $6.47. The stock has dropped 18.9% year to date through Wednesday, while the S&P 500 SPX, +0.95% has shed 16.5%.

This article was originally published by Marketwatch.com. Read the original article here.

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