On Wednesday, Jack in the Box Inc. (NASDAQ: JACK) reported earnings from continuing operations of $33.9 million, or $0.94 per diluted share, for the first quarter ended January 17, 2016, compared with $37.1 million, or $0.94 per diluted share, for the first quarter of fiscal 2015. Shares of Jack in the Box slumped 15.70% to $64.83 on Thursday morning trading.
Total revenue slightly increased 0.5% to $470.823 million compared with $468.621 million in the same quarter last year. Net earnings dropped down 7.3% to $33.221 million from last year $35.835 million. Diluted earnings per share rose 1.1% to $0.92 compared with $0.91 last year.
Lenny Comma, chairman and chief executive officer, said, “Our first quarter results were disappointing as operating earnings per share were below our expectations. At the Jack in the Box brand, margin expansion offset sales that were below our plan. Solid sales and traffic growth at Qdoba were hampered by lower than expected margins and some non-repetitive costs.”
Moreover, Jack in the Box narrowed its guidance for the year ending in October, estimating earnings, excluding items, of $3.50 to $3.63 a share, compared with its earlier forecast of $3.55 to $3.70.
According to a research note issued on Jan 5, 2016, SunTrust Robinson Humphrey announced it Initiates Coverage on Jack in the Box. In the research note, the firm offered target price of $82 per share. Jack in the Box have been rated ‘Neutral’ by the firm. Jefferies announced it Maintains its “Buying” rating on Jack in the Box on Nov 19, 2015, and lowers the price target to $95 per share from $107. On Nov 18, 2015, Barclays said it Maintains its rating on Jack in the Box. According to the research note, Barclays Lowers the price target to $83 per share from a prior target of $93. The shares have been rated ‘Equal-weight’ by the firm.