Yahoo Finance Jack in the Box (JACK) to Post Q2 Earnings: What's in Store?
Jack in the Box Inc. JACK is scheduled to report second-quarter fiscal 2023 results on May 17. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 14.2%.
Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.16 per share, indicating to remain unchanged year over year. Over the past seven days, JACK’s earnings estimates have remained stable. The consensus mark for revenues is pegged at $382.7 million, suggesting growth of 18.8% from the year-ago quarter.
Factors to Note
Jack in the Box’s fiscal second-quarter top line is likely to have been aided by robust digitalization, menu innovation and sales building efforts. Average check growth, robust restaurant sales, franchise rental revenues and franchise royalties are likely to have benefited the company’s performance in the quarter to be reported.
Our model predicts restaurant sales, franchise rental revenues and franchise royalties to increase 16.2%, 28.1% and 9.9% year over year to $175.9 million, $98.1 million and $50.1 million, respectively. Increased focus on unit expansion, off-premise business, drive-thru enhancements and aggressive brand marketing might have driven performance in the quarter under review.
However, food and packaging costs, and payroll & employee benefits are likely to have affected margins. Per our model, food and packaging costs, and expenses related to payroll & employee benefits will increase 15.8% and 15.4% year over year, respectively.
What Does the Zacks Model Say?
Our proven model predicts an earnings beat for Jack in the Box this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Jack in the Box has an Earnings ESP of +5.60% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks Poised to Beat Estimates
Here are some other stocks worth considering from the Zacks Retail-Wholesale space, as our model shows that these too have the right combination of elements to beat on earnings this season.
Chuy's Holdings, Inc. CHUY has an Earnings ESP of +7.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Chuy's Holdings have declined 12.4% so far this year. CHUY’s earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 23.4%.
BJ's Restaurants, Inc. BJRI has an Earnings ESP of +0.63% and a Zacks Rank #2.
Shares of BJ's Restaurants have declined 27.4% in the past year. BJRI’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 93%.
Brinker International, Inc. EAT has an Earnings ESP of +0.13% and a Zacks Rank #3.
Shares of Brinker have declined 57.2% in the past year. EAT’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 14.6%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report
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Brinker International, Inc. (EAT) : Free Stock Analysis Report
Chuy's Holdings, Inc. (CHUY) : Free Stock Analysis Report
