Why Is Jack In The Box (JACK) Down 6.3% Since Last Earnings Report?

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Image: Bigstock Zacks Equity Research December 22nd, 2022 JACK WEN Trades starting at $1. You follow Realtime Blog - edit. Read MoreHide full article. It has been a month since Jack In The Box's last earnings report (JACK – Free Report). The shares have lost 6.3% over that period, which is below the S&P 500. Let's first look at the latest earnings report to see how analysts and investors have reacted. Jack in the box Q4 Earnings lag Estimates, Revenues TopJackin the Box reported mixed fourth quarter fiscal 2022 results. The earnings missed the Zacks Consensus Estimate, but revenues beat the same. The adjusted earnings from continuing operations were $1.33 per share in the fiscal fourth quarter. This was a rise year over year. This figure was below the Zacks Consensus Estimate (1.35). This metric fell 23.1% from $1.73 in the previous-year quarter. Quartly revenues of $402.8million beat the Zacks Estimate of $392million by 2.6%. On a year-overyear basis, the top line rose 44.6%. Franchise rental revenues decreased 4.4% year-over-year to $80.7million. Franchise royalties and other revenue increased 15.5% year-over-year to $56.9million. Franchise contributions to advertising and other service revenues increased 3.2% year-over-year to $50.7 million. Higher food and packaging costs, 11.3% wage inflation, higher utilities and maintenance-and repair costs were the main reasons for this downturn. This was partially offset by price increases. Food and packaging costs as a percentage of restaurant sales fell 10 bps to 30.9%. The quarter's commodity costs increased by 14.9% over the previous year. The increase in oil, proteins and sauces prices can be attributed as the reason for the quarter's upside. The quarter saw 9.3% of total revenues being attributed to selling, general, and administrative expenses, compared to 7.6% in the prior year quarter.Balance SheetAt Oct 2, 2022 cash was $108.9 million, compared to $55.3 million at Oct 3, 2021. The quarter's inventories were $5.3 million, compared to $2.3 million on Oct 3, 2021. The company purchased nearly 0.3 million shares at a total cost of $25 million during the fourth quarter. Long-term debt net of current maturities was $1,799.5million as of Oct 2, 2022. The company announced that $175 million was available under its repurchase plan as of October 2. The company declared a cash dividend at 44 cents per share. The company will pay the dividend to shareholders who were registered as of December 7, 2022. Fiscal 2023 OutlookThe company expects Jack in the Box Restaurant Level Margin in fiscal 2023 to be 18-20%. The Del Taco Restaurant Level Margin will be between 14-16%. The company anticipates same store sales for Jack in the Box as well as Del Taco to be in the single digits. In fiscal 2023, company-wide CapEx and Other Investments are expected to be in the range $75-90 millions. SG&A expenses for fiscal 2023 are expected to be between $160-170 Million. The company-wide operating earnings per shared EPS (for fiscal 2023) are expected to be in the range $5.25-5.65. The magnitude of these revisions indicate a downward shift. Jack In The Box is a Zacks #3 (Hold) stock. We anticipate an in-line return on the stock over the next few months. Performance of an Industry PlayerJack in The Box is part the Zacks Retail-Restaurants industry. Wendy's (WEN-Free Report) has increased 4.4% over the past month. The company's September 2022 quarter results were more impressive than the previous month. Wendy's reported revenue of $532.57million in the most recent quarter. This represents a +13.3% increase year-over-year. The $0.24 EPS for the same period is compared to $0.19 a decade ago. Wendy's expects earnings of $0.20 per stock for the current quarter. This represents a +25% increase year-over-year. The Zacks Consensus Estimate for Wendy's has changed by -0.8% over the past 30 days. This results in a Zacks Rank #3(Hold). Also, the stock has a VGM Score of D. earnings earnings-estimates earnings-performance earnings-report earnings-trend revenue zacks-consensus-estimate

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