Overview

* Jack in the Box Q3 revenue falls 9.8%, driven by lower sales and refranchising

* Adjusted EPS of $1.02 misses analyst expectations, per LSEG data

* Same-store sales decline 7.1% for Jack in the Box, 2.6% for Del Taco

Outlook

* Jack in the Box expects FY same-store sales to decline low- to mid-single digits

* Company projects FY adjusted EBITDA of $270 mln to $275 mln

* Jack in the Box plans 30 to 35 gross restaurant openings in FY

* Company-owned restaurant level margin expected at 19% to 21%

Result Drivers

* SAME-STORE SALES DECLINE - Jack in the Box same-store sales fell 7.1% in Q3, with declines in both franchise and company-owned locations, driven by a drop in transactions and mix, partially offset by price increases

* HIGHER COSTS - Restaurant-level margin decreased to 17.9% from 21% due to lower sales, higher labor costs, commodity inflation, and increased utility and other operating costs, with some offset from favorable beverage funding contracts and increased prices

* RESTAURANT CLOSURES - Net restaurant count decreased by 15 units, with 13 closures related to the 'JACK on Track' block closure program

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $140.93

Company mln

Restaura

nt Sales

Q3 Miss $1.02 $1.17

Adjusted (18

EPS Analysts

)

Q3 EPS $1.15

Q3 Net $22.03

Income mln

Q3 $61.60

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Jack in the Box Inc ( JACK ) is $25.00, about 22% above its August 5 closing price of $19.50

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)