Jack in the Box(JACK) ZACKS·2024-12-20 17:31Core Insights - Jack in the Box reported mixed fourth-quarter fiscal 2024 results, with earnings per share (EPS) of $1.16 exceeding estimates but revenues of $349.3 million falling short of expectations [1][9][10] Financial Performance - Operating EPS for the quarter was $1.16, up 5.5% from $1.10 in the prior-year quarter [1] - Quarterly revenues of $349.3 million missed the consensus mark of $358 million, representing a year-over-year decline of 6.2% [10] - Franchise rental revenues increased by 1.5% year over year to $87.3 million, while franchise royalties and other revenues decreased by 1.3% to $54.5 million [4] - Company-owned same-store sales declined by 2.2% year over year, contrasting with a growth of 4.4% in the prior-year quarter [5] - Systemwide same-store sales fell by 2.1% year over year, down from 3.9% growth reported in the year-ago quarter [6] Margins and Costs - The total restaurant-level adjusted margin was 15.1%, down from 18% in the prior-year quarter, attributed to reduced transactions and rising costs from inflation [20] - The total franchise level margin was 38.9%, slightly down from 39.2% in the prior-year quarter [21] - Food and packaging costs as a percentage of company restaurant sales decreased by 80 basis points to 28.4% [20] Balance Sheet and Cash Flow - As of September 29, 2024, cash totaled $54.2 million, down from $185.9 million as of October 1, 2023, while long-term debt was $1.69 billion [14] - The company repurchased 0.3 million shares in the fiscal fourth quarter and announced $180 million available under its share repurchase program [22] Future Outlook - For fiscal 2025, the company anticipates adjusted EBITDA in the range of $288-$303 million and expects operating EPS to be between $5.05 and $5.45 [23][24] - Same-store sales for Jack in the Box are expected to be flat to up 1%, while the Del Taco segment is projected to be flat to down 1% [15]