Jack In The Box Shares Plummet 11% After Q1 Profit, Revenue Misses And Disappointing Guidance

By Emma Court Markets MarketWatch Pulse

Jack in the Box Inc. shares plummeted 11% in post-market trade Wednesday after the company reported a first-quarter profit and revenue miss. Earnings for the latest quarter rose to $1.14 per share, or $37 million, from 94 cents per share, or $34 million, in the year-earlier period. The latest results include restructuring charges of $2 million, which include facility closing costs and employee severance pay, and lower-than-expected sales and margins at its Qdoba franchise, the company said. Adjusted earnings-per-share were $1.14, below the FactSet consensus of $1.24. Revenue rose to $488 million from $471 million, below the FactSet consensus of $500 million. Jack in the Box expects same-store sales of flat to down 2% at Jack in the Box restaurants and down 1% to 3% same-store sales at Qdoba restaurants in the second quarter. For fiscal year 2017, it said it expects a 2% same-store sales increase at Jack in the Box restaurants and about flat same-store sales at Qdoba restaurants. The company expects adjusted EPS of $4.25 to $4.45 for fiscal year 2017, below the FactSet consensus of $4.71. Jack in the Box shares have declined 3.9% over the last three months, compared with a 7.3% rise in the S&P 500 .

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