On November 21, 2023, Jack In The Box Inc (JACK, Financial) released its 8-K filing, detailing the financial outcomes for the fourth quarter and the full fiscal year of 2023. The report presented a mixed bag of achievements and challenges, with notable same-store sales growth for Jack In The Box, but a decline in Del Taco's same-store sales for the fourth quarter.
Performance Highlights
Jack In The Box Inc (JACK, Financial) reported a 3.9% increase in same-store sales for the fourth quarter, driven by pricing strategies, although this was partially offset by a decrease in transactions and menu mix. The company's systemwide sales for the quarter rose by 4.3%. On the other hand, Del Taco, another segment of the company, experienced a 1.5% decline in same-store sales for the same period, attributed to a drop in transactions and menu mix, despite pricing increases.
Financial Achievements and Challenges
Despite the growth in same-store sales, Jack In The Box Inc (JACK, Financial) faced a 7.5% decrease in total revenues for the fourth quarter, amounting to $372.5 million compared to the previous year. Net earnings also saw a significant decline, falling to $21.9 million from $45.9 million in the prior year's fourth quarter. The diluted earnings per share stood at $1.08, down from $2.17 in the same quarter of the previous year.
Operational Developments
Throughout fiscal year 2023, Jack In The Box Inc (JACK, Financial) opened 34 new restaurants, including the first-ever location in Louisville, which, along with other new market locations, has been performing strongly with weekly sales averaging over $100,000 per restaurant. Del Taco completed the refranchising of 111 restaurants, with commitments for 109 new restaurants.
Financial Tables Summary
The earnings report included detailed financial tables, which showed a mixed performance across different financial metrics. Restaurant-Level Margin for Jack In The Box increased to 20.7% in the fourth quarter, up from 16.2% in the prior year, while Franchise-Level Margin decreased to 39.9% from 42.4%. Del Taco's Restaurant-Level Margin decreased to 14.8% from 15.9%, and its Franchise-Level Margin dropped to 32.5% from 42.5%.
Future Outlook
Looking ahead to fiscal year 2024, Jack In The Box Inc (JACK, Financial) provided guidance that includes capital expenditures and other investments of $110-$120 million, SG&A guidance of $165-$175 million, and an adjusted EBITDA of $325-$335 million. The company anticipates same-store sales growth in the low-to-mid single digits for both Jack In The Box and Del Taco segments.
The company also announced a share repurchase program authorized for up to $250.0 million of the company’s common stock and declared a cash dividend of $0.44 per share, to be paid on December 28, 2023.
Jack In The Box Inc (JACK, Financial) CEO Darin Harris commented on the results, stating,
“We achieved several important milestones for our business in 2023 including positive unit growth, successful new market openings, accelerated Del Taco refranchising, strong same stores sales performance and improvements in restaurant-level profitability,”while acknowledging industry headwinds and expressing optimism for the company's growth strategy in 2024.
Investors and analysts can access more details on the company's performance and future plans during the conference call scheduled for November 21, 2023.
For a comprehensive understanding of Jack In The Box Inc (JACK, Financial)'s financial health and strategic direction, readers are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Jack In The Box Inc for further details.
