There were few surprises in Q4 results from Jack in the Box (NASDAQ:JACK) with shares modestly higher in after-hours trade.
The company earned a profit of $1.95 per share, down from $2.01 in the same quarter last year and a penny below expectations.
As a result of costs associated with the Del Taco refranchising efforts, revenue was down 7.5% to $487.5M but was $5.9M higher than the Street anticipated.
Same store sales increased 0.8% compared to 7.8% last year, franchise same store sales were up 0.7% versus 7.4% a year ago, and company-operating same store sales were up 2.0% versus +12.6% year-over-year. For Del Taco, same store stores rose 2.2% compared to +3.0% last year, franchise same store sales were up 2.4% versus +2.8% last year, and company-operated same store sales rose 1.8% versus +3.1% a year ago.
Restaurant level margin improved 3.3% to 23.1% driven by commodity deflation and sales leverage. Franchise level margin dropped to 41.2% from 44.4% last year, driven by the lap of a prior year Hawaii transaction royalty buyout which had a $7.3M positive impact on franchise level margin in Q1 2023.
Jack in the Box ended the year with 2,048 franchised restaurants and 144 company-owned locations. The company signed development agreements to expand franchises in Florida and with new locations in Michigan.
The company maintained its 2024 guidance of operating earnings of $6.25 to $6.50 per share compared to estimates of $6.09, and adjusted EBITDA of $325M-$335M.