Financial Data and Key Metrics Changes - The company reported consolidated GAAP diluted earnings per share for Q1 2025 at $1.75, down from $1.93 in the prior year, while operating earnings per share was $1.92 compared to $1.95 in the previous year [16] - Restaurant level margin percentage remained flat year-over-year at 23.2%, aided by the completion of a new beverage partner contract [13] Business Line Data and Key Metrics Changes - Jack in the Box achieved positive same-store sales growth of 40 basis points for the quarter, despite challenges from California wildfires and unusual weather, which negatively impacted sales by approximately 20 basis points [11] - Del Taco faced a challenging quarter with pressured same-store sales and is also expected to post negative same-store sales in Q2, although a menu optimization initiative has shown encouraging results [14] Market Data and Key Metrics Changes - The company opened five restaurants and closed six in Q1, with expectations to open between 35 and 45 restaurants for fiscal year 2025 [13] - Del Taco's restaurant count at the end of the quarter was 589, with one opening and six closures [15] Company Strategy and Development Direction - The company is focused on capital allocation and cash flow improvement, with a slight reduction in capital expenditure guidance for the year [17][18] - The strategy includes a barbell approach to marketing, value leadership, and digital evolution to drive sales [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro pressures and anticipated negative same-store sales results for Q2, but expressed confidence in the marketing calendar and digital capabilities to drive future sales [12][39] - The leadership transition is seen as an opportunity to build on a strong foundation for growth and maximize long-term potential [9][22] Other Important Information - The company repurchased 124,000 shares for $5 million during the quarter, but plans to halt further repurchase activity for the year to focus on reducing leverage [16][17] - An updated capital expenditure range for the year is set at $100 million to $105 million, reflecting a slight reduction [18] Q&A Session Summary Question: Capital allocation and cash flow focus - Management confirmed a sharpened focus on capital allocation and cash flow, indicating that further announcements regarding free cash flow acceleration opportunities are expected in May [27][30] Question: Company store openings strategy - Management stated that while there is a place for company store builds, the focus will be on complementing franchisee growth rather than leading it [36] Question: Consumer environment and sales strategy - Management acknowledged the cautious consumer environment but expressed confidence in their sales strategy, emphasizing value and menu innovation to reestablish positive momentum [38]

For the quarter ended December 2024, Jack In The Box (JACK) reported revenue of $469.44 million, down 3.7% over the same period last year. EPS came in at $1.92, compared to $1.95 in the year-ago quarter.The reported revenue represents a surprise of -0.17% over the Zacks Consensus Estimate of $470.22 million. With the consensus EPS estimate being $1.71, the EPS surprise was +12.28%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Core Insights - Jack In The Box (JACK) reported quarterly earnings of $1.92 per share, exceeding the Zacks Consensus Estimate of $1.71 per share, but down from $1.95 per share a year ago, indicating a 1.5% year-over-year decline [1] - The company achieved an earnings surprise of 12.28% for the quarter, following a previous surprise of 4.50% [1][2] - Revenue for the quarter was $469.44 million, slightly missing the Zacks Consensus Estimate by 0.17% and down from $487.5 million year-over-year [2] - Jack In The Box has consistently surpassed consensus EPS estimates over the last four quarters, but has not beaten revenue estimates during the same period [2] Earnings Outlook - The future performance of Jack In The Box shares will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.19, with projected revenues of $353.57 million, and for the current fiscal year, the EPS estimate is $5.32 on revenues of $1.54 billion [7] Industry Context - The Retail - Restaurants industry, to which Jack In The Box belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Jack in the Box (JACK) Q1 2025 Earnings Call February 25, 2025 05:00 PM ET Company Participants Chris Brandon - Vice President-Investor RelationsLance Tucker - Interim Principal Executive OfficerLauren Silberman - Director Conference Call Participants Brian Bittner - Senior Equity Analyst - RestaurantsGregory Francfort - Director - Lead Restaurant Analyst Operator Thank you for standing by, and good day, everyone. My name is Arzih, and I will be your conference operator today. At this time, I would like to ...

Sales Performance - Jack in the Box's same-store sales decreased by 0.4% for the sixteen weeks ended January 19, 2025, compared to an increase of 2.0% in the same period of 2024[89] - Del Taco's same-store sales decreased by 2.5% for the sixteen weeks ended January 19, 2025, compared to an increase of 1.8% in the same period of 2024[89] - Jack in the Box's company-operated restaurant sales increased by $1.7 million, or 1.3%, to $133.755 million for the sixteen weeks ended January 19, 2025[91] - Del Taco's company-operated restaurant sales decreased by $24.3 million, or 26.5%, to $67.651 million for the sixteen weeks ended January 19, 2025, primarily due to refranchising[102] Franchise Revenue - Franchise rental revenues for Jack in the Box increased by $0.2 million, or 0.2%, to $105.781 million for the sixteen weeks ended January 19, 2025[98] - Franchise royalties for Jack in the Box increased by $0.3 million, or 0.4%, to $61.825 million for the sixteen weeks ended January 19, 2025[99] - Franchise rental revenues increased by $3.1 million, or 41.3%, compared to the prior year, primarily due to higher rental income from 60 refranchised restaurants[5] - Total franchise revenues rose to $30.7 million, an increase of $3.5 million, or 12.9%, compared to the prior year[5] Cost Management - Food and packaging costs for Jack in the Box as a percentage of company restaurant sales decreased by 3.8% compared to the prior year, primarily due to a new beverage contract[95] - Payroll and employee benefit costs for Jack in the Box increased by 2.5% as a percentage of company restaurant sales, driven by wage inflation of approximately 14.7%[96] - Del Taco's food and packaging costs as a percentage of company restaurant sales decreased to 25.1% from 27.0% in the prior year[102] - Menu price increases of approximately 7.6% contributed to a 1.9% decrease in food and packaging costs as a percentage of restaurant sales compared to the prior year[1] - Labor inflation was 15.4% in the quarter, leading to a 2.9% increase in payroll and employee benefit costs as a percentage of restaurant sales compared to the prior year[2] Restaurant Count - The total number of Jack in the Box restaurants decreased by 1 to 2,190, while Del Taco's total number of restaurants decreased by 3 to 589 as of January 19, 2025[89] Financial Performance - Operating cash flows increased by $128.3 million compared to a year ago, primarily due to a favorable change in working capital of $132.5 million[122] - Interest expense, net decreased by $0.1 million, primarily due to a decrease of $0.4 million in interest expense from lower average borrowings[117] - The effective tax rate increased to 29.8% from 26.9% in the prior fiscal year, driven by higher tax expenses on share-based compensation[118] - Total capital expenditures decreased by $3.7 million to $35.1 million, primarily due to a decrease in the number of properties acquired for refranchising[123] Shareholder Returns - The company repurchased 0.1 million shares of common stock for an aggregate cost of $5.0 million, with $175.0 million remaining under authorized share repurchase programs[128] - The company declared a cash dividend of $0.44 per share, totaling $8.4 million, with an additional dividend declared on February 21, 2025[128][129] Debt and Liquidity - The Company completed the sale of $550.0 million of Series 2022-1 Fixed Rate Senior Secured Notes, with anticipated repayment dates in February 2027 and February 2032[130] - As of January 19, 2025, the Company had available borrowing capacity of $95.7 million under its Variable Funding Notes, net of letters of credit issued of $54.3 million[131] - The Company had restricted cash of $29.7 million as of January 19, 2025, primarily for payments of interest and commitment fees required for the Class A-1 and A-2 Notes[134] - The Company was in compliance with all debt covenant requirements as of January 19, 2025, and was not subject to any rapid amortization events[135] - Del Taco entered into a syndicated credit facility with an aggregate principal amount of up to $75.0 million, maturing on February 28, 2025, with no outstanding borrowings as of January 19, 2025[136] - The Company has had a leverage ratio greater than 5.0x since the issuance of the 2022 Notes, resuming scheduled amortization payments in the second quarter of 2022[133] - The securitized debt instruments issued by certain wholly-owned subsidiaries have restrictive terms, and failure to comply could result in default[142] Business Risks - The Company has significant competition in the food service industry, which could adversely affect its business[140] - The Company faces risks associated with its highly franchised business model, which could negatively impact its operations if franchisees fail to operate successfully[141] - The Company is dependent on information technology and digital service providers, and any material failure could adversely affect its business[141]

Sales Performance - Jack in the Box reported same-store sales growth of 0.4% in Q1 2025, with franchise same-store sales increasing by 0.5% and company-owned same-store sales declining by 0.4%[2][4][8] - Del Taco experienced a same-store sales decline of 4.5% in Q1 2025, with franchise same-store sales down 5.1% and company-operated same-store sales down 2.5%[11][12] - Systemwide sales for Jack in the Box reached $1,366,102 thousand, a slight increase from $1,358,807 thousand, reflecting a growth of 0.2%[41] - Company restaurant sales decreased to $201,406 thousand from $224,040 thousand, a decline of 10.1% year-over-year[30] - Company restaurant sales for the 16 weeks ended January 19, 2025, totaled $133.8 million, compared to $132.1 million for the same period in 2024, showing a growth of 1.3%[58] - Company restaurant sales decreased to $133,755 in 2025 from $132,057 in 2024, indicating a slight decline of 1.3%[63] Financial Performance - Total revenues for Jack in the Box decreased by 3.7% to $469.4 million compared to $487.5 million in the prior year quarter[16] - Diluted earnings per share for the first quarter were $1.75, while operating EPS was $1.92, down from $1.95 in the prior year quarter[16][18] - Net earnings fell to $33,686 thousand, down 13.0% from $38,683 thousand in the same period last year[30] - Basic net earnings per share decreased to $1.77 from $1.94, a decline of 8.8%[30] - Non-GAAP Adjusted Net Income for the 16 weeks ended January 19, 2025, was $36.8 million, down from $39.1 million in the prior year, representing a decline of 3.3%[48] - Adjusted EBITDA for the 16 weeks ended January 19, 2025, was $97.2 million, compared to $101.8 million for the same period in 2024, indicating a decrease of 4.5%[54] - Total earnings from operations for Del Taco were $10,546 in 2025, compared to $11,073 in 2024, a decrease of 4.8%[63] - The overall company reported a total loss of $49,485 in 2025 from other operations, compared to a loss of $49,300 in 2024, indicating a slight increase in losses[63] Margins and Expenses - Restaurant-Level Margin for Jack in the Box was $31.0 million, or 23.2%, up from $30.4 million, or 23.1%, a year ago[5][6] - Restaurant-Level Margin for Jack in the Box was 23.2% for the 16 weeks ended January 19, 2025, slightly up from 23.1% in the same period in 2024[58] - Franchise-Level Margin for the 16 weeks ended January 19, 2025, was $40.3 million, with a margin percentage of 20.0%[58] - Franchise-Level Margin for Jack in the Box was 40.9% in 2025, slightly down from 41.2% in 2024[63] - Franchise-Level Margin for Del Taco was 25.7% in 2025, down from 29.3% in 2024, indicating a decline of 3.6 percentage points[63] - Payroll and employee benefits expenses rose to $44,528 in 2025 from $40,689 in 2024, an increase of 9.0%[63] - Selling, general and administrative expenses totaled $50,671 in 2025, up from $46,274 in 2024, reflecting an increase of 9.6%[63] Development and Agreements - Jack in the Box signed 3 development agreements for 10 new restaurants in Q1 2025, while the net restaurant count decreased slightly with five openings and six closures[7][9] - Del Taco has signed 40 agreements for a total of 303 restaurants since being acquired by Jack in the Box, with 14 restaurants opened to date[13] Cash Flow and Assets - Cash flows provided by operating activities were $105,656 thousand, compared to a cash outflow of $22,675 thousand in the prior year[35] - Total current assets increased to $213,986 thousand, up 18.0% from $181,277 thousand[33] - Cash and restricted cash at the end of the period rose to $104,633 thousand, compared to $82,534 thousand, an increase of 26.7%[35] Stock and Buybacks - The company repurchased 0.1 million shares for an aggregate cost of $5.0 million in Q1 2025, with $175.0 million remaining under the stock buyback program[20] Taxation - The effective tax rate for the first quarter of 2025 was 29.8%, compared to 26.9% in the same quarter of the previous year[18] - The income tax rate increased to 29.8% from 26.9% year-over-year[38] - The tax impact of adjustments for the quarter was a benefit of $0.03 per share, compared to a benefit of $0.02 per share in the prior year[48]

Core Viewpoint - Analysts expect Jack In The Box (JACK) to report quarterly earnings of $1.71 per share, reflecting a year-over-year decline of 12.3%, with revenues projected at $470.38 million, down 3.5% from the previous year [1] Revenue Estimates - Franchise revenues are estimated to be $265.34 million, indicating a year-over-year increase of 0.7% [4] - Revenues from franchise contributions for advertising and other services are expected to reach $77.11 million, showing a change of 0.2% from the year-ago quarter [4] - Company restaurant sales are projected at $204.08 million, reflecting a decline of 8.9% from the previous year [5] - Franchise rental revenues are anticipated to be $113.57 million, with a slight increase of 0.3% from the year-ago quarter [5] Restaurant Counts - Total restaurant counts for Jack In The Box are expected to reach 2,195, compared to 2,192 in the same quarter last year [5] - Total system counts (Jack In The Box + Del Taco) are projected at 2,789, up from 2,784 year-over-year [6] - Franchised restaurant counts for Jack In The Box are estimated at 2,044, down from 2,048 in the same quarter last year [7] - Del Taco's franchised restaurant counts are expected to be 476, up from 413 in the same quarter of the previous year [8] Stock Performance - Jack In The Box shares have shown a return of -2.9% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [10]

Core Insights - Del Taco is reintroducing its Jumbo Shrimp to the menu alongside the Beer Battered Fish Taco, aiming to enhance its seafood offerings in the quick-service restaurant sector [3][5] - The new seafood lineup will be available for a limited time from February 20 to April 23, 2025, emphasizing premium quality at an affordable price [4][3] - Del Taco is promoting a digital-exclusive offer of $2 off a Fish Taco Meal every Friday during the promotional period, enhancing customer engagement [5] Product Offerings - The Jumbo Shrimp Tacos feature two tacos with crispy, seasoned Jumbo Shrimp, savory secret sauce, crunchy shredded cabbage, and fresh pico de gallo, served with lime wedges, priced at $6 for two [8] - The Jumbo Shrimp Burrito includes crispy Jumbo Shrimp with cilantro lime rice, shredded cabbage, and savory secret sauce in a warm flour tortilla, available for a limited time [8] - The Beer-Battered Fish Taco consists of wild-caught Alaska Pollock fillet in a crispy beer batter, served in a warm corn tortilla, with a promotional price of $7 for three tacos [8] Company Background - Founded in 1964, Del Taco operates nearly 600 restaurants across 17 states, serving over three million guests weekly [7] - The company focuses on providing real food made from scratch, emphasizing quality ingredients and value for money [7]

Core Points - Jack Henry & Associates, Inc. will host a live webcast for its second quarter 2025 earnings conference call on February 5, 2025 [1] - The press release for the second quarter 2025 earnings will be issued after market close on February 4, 2025 [1] - The company will also release quarterly deconversion revenue results on January 27, 2025, prior to the full earnings results [3] Company Overview - Jack Henry & Associates, Inc. is a financial technology company that connects financial institutions with their clients [4] - The company is part of the S&P 500 and emphasizes openness, collaboration, and user-centric solutions [4] - Jack Henry has been providing technology solutions for over 48 years, serving approximately 7,500 clients [4]

Core Points - Del Taco is enhancing its menu with the introduction of two new burritos and value bundles aimed at providing guests with more flavor and savings [3][4][5] - The new offerings include the Chipotle Grilled Chicken Burrito and the Bean, Rice & Cheese Burrito, both made with fresh ingredients [4][5] - Del Taco is also reintroducing its Dragon Fruit Blueberry Poppers beverages in new flavor combinations [5][9] Menu Enhancements - The Chipotle Grilled Chicken Burrito features freshly grilled marinated chicken, chipotle sauce, and sour cream, wrapped in a grilled tortilla [4] - The Bean, Rice & Cheese Burrito includes slow-cooked beans, cilantro lime rice, and house-grated cheddar cheese, all wrapped in a warm flour tortilla [3][4] - Both burritos are part of Del Taco's Real Deal menu, which offers popular items at competitive prices [3][5] Value Bundles - Del Taco is launching three new bundle options: - Del's BIG Bundle for $10, serving 1-2 people [5] - Del's BIGGER Bundle for $15, serving 2-3 people [6] - Del's MEGA Bundle for $20, serving 3-5 people [7] - Each bundle includes a combination of new burritos, tacos, quesadillas, and chips with guacamole, designed for individuals and small groups [5][6][7] Beverage Offerings - The new Dragon Fruit Blueberry Poppers beverages include: - Dragon Fruit Blueberry Sprite Poppers [8] - Dragon Fruit Blueberry Lemonade Poppers [9] - Dragon Fruit Blueberry Shake Poppers [9] - These beverages feature blueberry-flavored popping boba pearls and real dragon fruit pieces, available for a limited time [8][9] Company Overview - Del Taco has been recognized as the Best Fast Food Restaurant in USA Today's 2024 10 Best Reader's Choice Awards [10] - The company operates nearly 600 restaurants across 17 states, serving over three million guests weekly [11] - Del Taco emphasizes fresh preparation of menu items, using quality ingredients like grilled chicken and house-made guacamole [10][11]