JACK IN THE BOX Reports Third Quarter FY2023 Earnings Results for August 9 2023
August 28, 2023
🌥️Earnings Overview
JACK IN THE BOX ($NASDAQ:JACK) reported a total revenue of USD 396.9 million and a net income of USD 29.2 million for the third quarter of FY2023, ending on August 9 2023. Compared to the same period of last year, total revenue grew by 0.3% and net income increased by 10.0%.
Market Price
The company’s stock opened at $94.6 and closed at $87.3, a drop of 6.8% from its previous closing price of 93.7. This decrease in stock price is likely due to investors’ reactions to JACK IN THE BOX’s earnings report, which will likely be analyzed in the coming weeks. The third quarter of FY2023 was a difficult one for JACK IN THE BOX, as the company faced a variety of challenges including the ongoing pandemic and ever-changing dining trends. Despite these difficulties, JACK IN THE BOX managed to show some signs of stability and even growth in some areas.
For example, the company reported a year-over-year increase of 3% in total system sales for the quarter as well as an increase in average customer ticket size. Though the company’s stock price may have decreased on Wednesday, JACK IN THE BOX’s leadership believes that the recent earnings results highlight the company’s potential for long-term success. Going forward, JACK IN THE BOX will focus on continuing to innovate and evolve their business model as well as increase their presence in high-growth markets. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JACK. More…
| Total Revenues | Net Income | Net Margin |
| 1.72k | 154.79 | 7.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JACK. More…
| Operations | Investing | Financing |
| 241.14 | 51.3 | -203.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for JACK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.95k | 3.66k | -35.08 |
Key Ratios Snapshot
Some of the financial key ratios for JACK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.4% | 9.9% | 17.8% |
| FCF Margin | ROE | ROA |
| 10.0% | -27.2% | 6.5% |
Analysis
As GoodWhale, we have conducted an analysis of JACK IN THE BOX’s finances. Based on our Star Chart, JACK IN THE BOX has a high health score of 7/10, considering its cashflows and debt and is capable to safely ride out any crisis without the risk of bankruptcy. In addition, JACK IN THE BOX is strong in dividend and medium in asset, growth, and profitability. As such, GoodWhale has classified JACK IN THE BOX as a ‘cheetah’ type of company; one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Therefore, GoodWhale recommends that investors looking for high growth companies with some instability should consider investing in JACK IN THE BOX. This type of investor may be seeking higher returns but is willing to accept a higher level of risk. More…
Peers
In the fast food industry, there is always competition between different companies. Two of the biggest competitors in this industry are Jack in the Box Inc. and Amrest Holdings SE. While both companies offer similar products, they have different strategies that they use to try to win over customers. For example, Jack in the Box Inc. focuses on offering a wide variety of food items, while Amrest Holdings SE focuses on providing a more personal dining experience. Ultimately, it is up to the customer to decide which company they prefer.
– Amrest Holdings SE ($LTS:0OGQ)
Amrest Holdings SE is a holding company that operates in the restaurant industry. It has a market cap of 4.01B as of 2022 and a return on equity of 14.44%. The company operates through two segments: restaurants and other. The restaurant segment includes the operation of restaurants, cafes, bars, and other food and beverage outlets. The other segment includes the operation of other businesses, such as the sale of food and beverage products, the provision of catering services, and the operation of hotels.
– Create Restaurants Holdings Inc ($TSE:3387)
Restaurants Holdings Inc is one of the world’s largest restaurant chains, with over 36,000 locations in over 100 countries. The company has a market cap of 191.66B as of 2022 and a ROE of 12.73%. The company operates in the quick service, casual dining, and fine dining segments and offers a variety of cuisines, including American, Chinese, Italian, Japanese, and Mexican.
– Mos Food Service Inc ($TSE:8153)
In 2022, Sysco’s market cap was $96.21 billion and its ROE was 5.34%. Sysco is a foodservice company that provides products and services to restaurants, hotels, healthcare facilities, and other customers worldwide. Sysco’s product offerings include fresh meat and seafood, produce, prepared food, and non-food items such as paper goods and cleaning supplies. The company also offers value-added services such as menu development, culinary training, and food safety consulting.
Summary
JACK IN THE BOX released its third quarter earnings report for FY2023, showing an increase in total revenue of 0.3% compared to the same period last year. Net income was up 10.0%, amounting to USD 29.2 million.
However, upon release of the results, the stock price of JACK IN THE BOX fell that same day. Investors are likely to be cautious over the company’s performance given the overall modest growth of the company and the potential impact of external factors on earnings. However, JACK IN THE BOX remains a strong brand and has potential for long-term growth.
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