Revenue decline and positive developments in Jack in the Box and Del Taco
- Jack in the Box 1Q revenue drops due to Del Taco refranchising measures
- Net profit for the quarter was $38.7 million
- Adjusted earnings were $1.95 a share
- Sales slipped 7.5% to $487.5 million
- Jack in the Box same-store sales were up 0.8%
- Company has 91 signed agreements for a total of 399 restaurants
- Sales rebound for Del Taco
- Outperformance of Jack in the Box restaurant level margin
- Completion of development agreements with new franchisees
Jack in the Box reported a drop in revenue for its fiscal first quarter due to the refranchising measures of its Del Taco fast food chain. The company posted a net profit of $38.7 million, or $1.93 a share, compared to $53.3 million, or $2.54 a share, in the same period last year. Adjusted earnings were $1.95 a share. Sales slipped 7.5% to $487.5 million, but still exceeded analyst projections. Same-store sales for Jack in the Box were up 0.8% during the quarter. The company has signed 91 agreements for a total of 399 restaurants. CEO Darin Harris expressed satisfaction with the sales rebound for Del Taco, the outperformance of Jack in the Box’s restaurant level margin, and the completion of development agreements with new franchisees.
Factuality Level: 8
Factuality Justification: The article provides specific details about Jack in the Box’s revenue drop in the fiscal first quarter, the reasons behind it, net profit, earnings, analyst expectations, sales figures, and performance of its flagship Jack in the Box chain. The information is presented in a straightforward manner without any obvious bias or sensationalism. However, the article could benefit from more context about the industry or the company’s historical performance for a more comprehensive understanding.
Noise Level: 3
Noise Justification: The article provides relevant information about Jack in the Box’s fiscal first quarter performance, including revenue drop due to Del Taco’s refranchising phase, net profit, adjusted earnings, sales figures, and CEO’s comments. The article stays on topic, supports its claims with data, and offers insights into the company’s performance.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the financial performance of Jack in the Box and its Del Taco fast food chain.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial performance of Jack in the Box and its Del Taco fast food chain, indicating a drop in revenue due to the refranchising phase of Del Taco. There is no mention of any extreme events or their impact.
Public Companies: Jack in the Box (NASDAQ: JACK), Del Taco (Not Applicable)
Key People: Darin Harris (Chief Executive)
Reported publicly:
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