Jack in the Box Q4 Earnings Top Estimates, Revenues Lag, Stock Down

Core Viewpoint - Jack in the Box Inc. (JACK) reported mixed fourth-quarter fiscal 2024 results, with earnings exceeding expectations while revenues fell short and declined year over year, leading to a 3.3% drop in shares during after-hours trading [1] Earnings & Revenues Details - Operating earnings per share (EPS) for the fourth quarter was $1.16, surpassing the Zacks Consensus Estimate of$ 1.11, and increased by 5.5% from $1.10 in the prior-year quarter [2] - Quarterly revenues totaled$ 349.3 million, missing the consensus mark of $358 million, and represented a 6.2% decline year over year [3] - Franchise rental revenues rose by 1.5% year over year to$ 87.3 million, while franchise royalties and other revenues decreased by 1.3% to $54.5 million [3] - Company restaurant sales were$ 151.4 million, down from $175 million in the prior-year quarter [4] Comps Discussion - Company-owned same-store sales fell by 2.2% year over year, contrasting with a 4.4% growth in the prior-year quarter [5] - Same-store sales at franchised stores decreased by 2% year over year, compared to a 3.8% growth in the prior-year quarter [5] - Systemwide same-store sales declined by 2.1% year over year, against a 3.9% growth reported in the year-ago quarter, attributed to reduced transactions and an unfavorable mix shift [5] Operating Highlights - The total restaurant-level adjusted margin was 15.1%, down from 18% in the prior-year quarter, due to reduced transactions and rising costs from inflation [7] - Food and packaging costs as a percentage of company restaurant sales decreased by 80 basis points to 28.4% [7] - The total franchise level margin was 38.9%, slightly down from 39.2% in the prior-year quarter [8] - Selling, general and administrative expenses accounted for 8.6% of total revenues, down from 11.7% in the prior-year quarter [8] Balance Sheet - As of September 29, 2024, cash totaled$ 54.2 million, down from $185.9 million as of October 1, 2023 [10] - Long-term debt (net of current maturities) was$ 1.69 billion, slightly reduced from $1.72 billion as of October 1, 2023 [10] - The company repurchased 0.3 million shares in the fourth quarter and announced$ 180 million available under its share repurchase program [10] Dividend Declaration - The company declared a cash dividend of 44 cents per share, payable on December 30, 2024, to shareholders on record as of December 12 [11] Fiscal 2025 Outlook - For fiscal 2025, adjusted EBITDA is anticipated to be in the range of $288-$ 303 million, with depreciation and amortization expenses expected between $58 million and$ 60 million [12] - Jack in the Box Restaurant Level Margin is projected to be 20-22%, with same-store sales expected to be flat to up 1%, while Del Taco segment is expected to be flat to down 1% [12] - Company-wide operating EPS for fiscal 2024 is expected to be in the range of $5.05-$ 5.45 [13]