Jack In The Box (JACK) reported earnings on Tue 16 May 17 (a/h)

• #15 

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Jack In The Box beats by $0.07, reports revs in-line; lowers FY17 EPS and comp guidance :

• Reports Q2 (Mar) earnings of $0.98 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.91; revenues rose 2.3% year/year to $369.4 mln vs the $369.36 mln Capital IQ Consensus.  
• Jack in the Box comps -0.8% vs. (2)-0% guidance; Qdoba -3.2%. Consolidated restaurant operating margin, a non-GAAP measure, decreased by 240 basis points to 17.5 percent of sales in the second quarter of 2017, compared with 19.9 percent of sales in the year-ago quarter.
• Q3 Guidance: Same-store sales of up 1.0 to down 1.0 percent at Jack in the Box system restaurants versus a 1.1 percent increase in same-store sales in the year-ago quarter. Same-store sales of up 1.0 to down 1.0 percent at Qdoba company restaurants versus a 1.0 percent increase in the year-ago quarter.
• Co issues downside guidance for FY17, lowers EPS to $4.10-4.30 from $4.25-4.45, excluding non-recurring items, vs. $4.35 Capital IQ Consensus Estimate. Same-store sales increase of ~1.0 percent at Jack in the Box system restaurants (down from +2%). Same-store sales decrease of ~1.0 to 2.0 percent at Qdoba company restaurants (from flat). Commodity costs of ~flat for both Jack in the Box and Qdoba. Consolidated restaurant operating margin of ~19.0 percent, depending on the timing of refranchising transactions and the margins associated with the restaurants sold. 
• "After a sluggish start to the quarter, which we believe was attributable to delayed tax refunds and record rainfall in California, Jack in the Box system same-store sales improved to positive territory as these transitory issues passed and we pivoted our advertising towards value messages. However, same-store sales at Qdoba company restaurants worsened in the latter two months of the quarter, as we lapped more aggressive discounting in last year's second quarter. While margins at Qdoba were still disappointing, they improved to over 16 percent in the final month of the quarter as we were able to manage labor and food costs more effectively than in the first quarter, despite the larger decline in same-store sales. We are also encouraged that Qdoba company same-store sales have improved thus far in the third quarter."