Jack in the Box Reports Q4 2024 Financial Results
Overview
Jack in the Box Inc. (NASDAQ: JACK) released its financial results for the fourth quarter of the fiscal year 2024, ending September 29, 2024.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $349.3 million | $372.5 million | -6.2% | $471.71 million |
| Net Earnings | $21.9 million | $21.9 million | 0% | - |
| Diluted Earnings Per Share | $1.12 | $1.08 | +3.7% | $1.99 |
Interpretation: Although Jack in the Box reported a slight increase in diluted EPS by 3.7% year-over-year, the company observed a 6.2% decrease in total revenues, which missed the consensus estimates. This suggests challenges in achieving sales growth, possibly impacted by external economic conditions and competitive pressures.
Segment Revenue Performance
| Segment | Q4 2024 Same-Store Sales Change | Systemwide Sales Change |
|---|---|---|
| Jack in the Box | -2.1% | -1.7% |
| Del Taco | -3.9% | -3.3% |
Interpretation: Both Jack in the Box and Del Taco experienced declines in same-store and systemwide sales for Q4 2024, likely driven by decreased transactions and unfavorable menu mix, indicating challenges in consumer spending and menu appeal.
Operational Highlights
- Jack in the Box opened 30 restaurants in FY 2024, the highest since 2012.
- 60 site approvals for new Jack in the Box locations in FY 2024, highest since 2010.
- Del Taco refranchised 47 restaurants, with commitments for 42 new units.
- Jack in the Box plans to open 8 restaurants in Chicago in 2025 and enter Florida.
- Franchise development signed for 5 new Detroit restaurants.
Comments from Company Officers
Darin Harris, CEO of Jack in the Box, expressed satisfaction with the company's growth in restaurant openings for both brands, reflecting a decade-high level. Harris noted the company's progress on digital initiatives and the rollout of new point-of-sale systems, emphasizing the need to tackle macroeconomic pressures while pursuing strategies to invigorate sales and traffic moving forward.
Dividends and Share Repurchase
- A cash dividend of $0.44 per share was declared, payable on December 30, 2024.
- The company repurchased 0.3 million shares in Q4 2024 and 1.1 million shares in FY 2024, costing $70.0 million.
- $180.0 million remains available under the share repurchase program.
Forward Guidance
Jack in the Box provided guidance for FY 2025, with expectations for capital expenditures of $105-$115 million, adjusted EBITDA of $288-$303 million, and operating EPS between $5.05 and $5.45. The company anticipates flat to slight growth in same-store sales for Jack in the Box and largely flat same-store sales for Del Taco.
Stock Price Movement
Following the earnings release, Jack in the Box shares saw a -0.93% change, reflecting mixed investor reactions to the company's financial performance and growth prospects.
The financial results and operational developments underscore Jack in the Box's focus on expansion and strategic initiatives, albeit with ongoing challenges in sales growth. The guidance for FY 2025 suggests moderate optimism in navigating operating costs and competitive challenges.
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