Shares of quick-service restaurant operator Jack in the Box (NASDAQ:JACK) are tumbling today after the company’s fourth-quarter bottom line missed expectations and its 2023 outlook failed to cheer investors.
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Revenue increased 44.6% year-over-year to $402.77 million, outpacing estimates by ~$10.7 million. EPS at $1.33, on the other hand, missed expectations by $0.03.
During this period, JACK witnessed same-store sales growth of 4% and now plans to open 25-30 restaurants in fiscal 2023.
Further, the company continues to see higher average check and increased traffic at its own stores. On the other hand, margins continue to be impacted by food and packaging costs as well as labor costs.
Consensus on the Street remains a Hold for the stock based on two Buys and six Holds.
For 2023, the company now expects EPS to range between $5.25 and $5.65. JACK shares are now down nearly 16% over the past month.
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