Fast-food chain Jack in the Box (NASDAQ:JACK) will be reporting results tomorrow after market close. Here's what to expect.
Jack in the Box missed analysts' revenue expectations by 1.2% last quarter, reporting revenues of $365.3 million, down 7.7% year on year. It was an ok quarter for the company, with an impressive beat of analysts' gross margin estimates but a miss of analysts' earnings estimates.
Is Jack in the Box a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Jack in the Box's revenue to decline 6.3% year on year to $371.8 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.51 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Jack in the Box has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.3% on average.
Looking at Jack in the Box's peers in the traditional fast food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. El Pollo Loco posted flat year-on-year revenue, beating analysts' expectations by 1.5%, and Wendy's reported revenues up 1.6%, falling short of estimates by 1%. El Pollo Loco's stock price was unchanged after the results, and Wendy's price followed a similar reaction.
Read our full analysis of El Pollo Loco's results here and Wendy's results here.
Investors in the traditional fast food segment have had steady hands going into earnings, with share prices flat over the last month. Jack in the Box is up 10.1% during the same time and is heading into earnings with an average analyst price target of $67.2 (compared to the current share price of $54.56).
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