Jack In The Box Inc ( JACK ) shares are trading higher after the company reported better-than–expected second-quarter FY24 adjusted EPS.

The company reported a second-quarter FY24 sales decline of 7.7% year-on-year to $365.35 million, missing the analyst consensus estimate of $368.64 million.

Jack In The Box same-store sales decreased 2.5% in the second quarter, consisting of a decline in company-operated same-store sales of 0.6% and a decrease in franchise same-store sales of 2.6%. Systemwide sales for the quarter dropped 1.6%.

Del Taco systemwide sales for the fiscal second quarter decreased 1.3%, and the same-store sales decreased 1.4%.

Selling, general and administrative expenses dropped 4.8% Y/Y to $37.5 million. Jack In The Box restaurant level margin was 23.6%, up 220 basis points from prior year.

The company’s operating margin was 14.8%, and operating income for the quarter fell 12.1% to $54.2 million.

Adjusted EBITDA was $75.7 million compared with $80.6 million in the prior year quarter. Adjusted EPS of $1.46 beat the consensus estimate of $1.42.

On May 10, 2024, the Board of Directors declared a cash dividend of $0.44 per share, to be paid on June 25 to shareholders of record as of the close of business on June 6. The fast-food chain held $49 million in cash and equivalents as of April 14.

“I am proud of the execution by our Jack and Del Taco teams, delivering better-than-expected earnings and margin performance while navigating through increasing macro headwinds, pressure on low-income consumers and the implementation of California’s minimum wage legislation,” said CEO Darin Harris.

“Top-line performance was impacted by the shift in consumer behavior and an unexpected delay in our Smashed Jack launch, but sales have improved since its introduction in mid-March. We have a clear plan to regain same store sales traction through a strong marketing calendar, new LTO’s, and an expanded value menu throughout the remainder of 2024.”

Outlook: Jack In The Box slashed the upper end of its FY24 EPS outlook, revising the range from $6.25 – $6.50 to $6.25 – $6.40.

The company now sees FY24 adjusted EBITDA of $325 million – $330 million (previously $325 million – $335 million).

Price Action: JACK shares are trading higher by 9.25% at $57.98 at the last check Tuesday.