Jack in the Box
Jack in the Box reported its 2Q24 results after market close this Tuesday and beat expectations. Revenues of $369MM, AEBITDA of $64MM, and EPS of $1.65. However, the results are quite weak:
Same-Store Sales declined both at Jack and at Del Taco by 2.2% and 3.9%, respectively (They expect -1% SSS for 4Q24)
Impairment on Del Taco of $162.2MM (Non-cash, but it highlights that the acquisition of Del Taco was not good)
At Jack in the Box, they closed the same number of restaurants as they opened. That is, the net growth of 15-25 restaurants for 2024 seems a very distant goal.
Very weak quarter for Del Taco. Restaurant level margin at Del Taco dropping from 17.5% to 13.5%
Minimal drop in the Guidance for 2024. AEBITDA $320-$325MM (from 325-330). Operating EPS of $6.10-$6.25 (from 6.2-6.4)
Cash Flow from operations $45.3MM in the quarter. Capex was $24.7MM
They announce entry into Chicago with 10 new restaurants in 2025 (Jack).