Del Taco (TACO) to be acquired by Jack in the Box (JACK) for $12.51/share in cash

• San Diego, California-based Jack in the Box, which would now have over 2,800 restaurants spanning 25 states, said the deal would help the chain beef up its off-restaurant premise sales. About 99% of Del Taco restaurants feature a drive-thru. 

  

** TACO **

Del Taco to be acquired by Jack in the Box (JACK) for $12.51/share in cash

• Cos announced that the companies have entered into a definitive agreement pursuant to which Jack in the Box will acquire Del Taco for $12.51 per share in cash in a transaction valued at approximately $575 million, including existing debt. While this price per share offers an attractive premium to Del Taco shareholders, Jack in the Box estimates that the transaction values Del Taco at a synergy adjusted multiple of approximately 7.6x trailing twelve months Adjusted EBITDA.
• Jack in the Box expects the transaction to be mid-single-digit accretive to earnings per share excluding transaction expenses in year one and meaningfully accretive beginning in year two once full synergizes are realized.
• Jack in the Box expects the combined company to realize run-rate strategic and cost synergies of approximately $15 million by the end of fiscal year 2023, with approximately half of the synergies achieved in the first year. Jack in the Box expects to achieve these synergies largely through procurement and supply chain savings, technology and digital efficiencies and other financial benefits, as well as knowledge-sharing initiatives.

Jack In The Box (JACK) reported earnings on Mon 19 Nov 2018 (a/h)

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Jack In The Box misses by $0.08, beats on revs 

• Reports Q4 (Sep) earnings of $0.77 per share, excluding non-recurring items, $0.08 worse than the S&P Capital IQ Consensus of $0.85; revenues fell 23.5% year/year to $177.47 mln vs the $175.26 mln S&P Capital IQ Consensus.
  • System same-store sales increased 0.5%.
• Lenny Comma, chairman and chief executive officer, said, "Same-store sales were positive in the fourth quarter, although we experienced a slowdown in September along with the rest of the category. The competitive environment remains extremely aggressive, but we continue to avoid deep discounting which we believe is not in the best interests of the long-term health of the brand."
• Fiscal 2019 guidance:
  • System same-store sales of approximately flat to up 2.0 percent.
  • Restaurant-Level EBITDA of approximately 26.0 to 27.0 percent of company restaurant sales.
  • Adjusted EBITDA of approximately $260 to $270 million.
  • Following implementation of a new capital structure in the first half of fiscal 2019, the company expects to increase its leverage ratio to approximately 5.0 times EBITDA.
• The company also announced today that on November 15, 2018, its Board of Directors declared a cash dividend of $0.40 per share on the company's common stock. The dividend is payable on December 18, 2018, to shareholders of record at the close of business on December 5, 2018.

Earnings this week : Nov 19 - 23, 18 (wk 47)

Earnings confirmed to report this week

Monday (Nov 19) 

• Morning: JD SPB
• Afternoon: A BECN BRKS GH INTU JACK KLIC LB NUAN PSTG URBN

Tuesday (Nov 20)

• Morning: ADI BBY BKS CPB DY HRL JEC KSS LOW MDT MMS NJR PDD ROST SFL TGT TJX
• Afternoon: ADSK BILI BJ CAL CPRT ESL FL GPS KEYS QADA SE

Wednesday (Nov 21)

• Morning: BZUN CMCM DAKT DE QD
• Afternoon: None

Thursday (Nov 22)

• Markets closed for Thanksgiving

Friday (Nov 23)

• None

Jack In The Box (JACK) to sell Qdoba Restaurant Corporation to Apollo Global (APO)

• Qdoba, with 700 locations in 47 states, is the second largest fast-casual Mexican food chain after Chipotle.

 

Jack In The Box to sell Qdoba Restaurant Corporation to Apollo Global (APO) for $305 mln in cash 
The transaction is expected to close by April 2018. The Company expects to use the net cash proceeds after tax and transaction costs to retire outstanding debt under its term loan, as required by the terms of its credit facility.

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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."

Jack In The Box (JACK) reported earnings on Wed 22 Feb 2017 (a/h)

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Jack In The Box misses by $0.07, misses on revs; guides FY17 EPS below consensus:

• Reports Q1 (Dec) earnings of $1.18 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus of $1.25; revenues rose 3.6% year/year to $487.9 mln vs the $499.52 mln Capital IQ Consensus.
  • Company same-store sales increased 0.6 percent in the first quarter, with average check up 4.9 percent.
• Co issues downside guidance for FY17, sees EPS of $4.25-4.45, excluding non-recurring items, vs. $4.70 Capital IQ Consensus Estimate.
• Lenny Comma, chairman and chief executive officer, said, "Our first quarter results were mixed, with solid results at the Jack in the Box brand offset by lower than expected sales and disappointing margins at Qdoba. We are intent on improving the performance of the Qdoba brand with priorities focused on driving sales growth and managing labor and food costs more effectively. We were pleased that Jack in the Box system same-store sales outperformed sluggish industry trends during the quarter. And despite the weaker Qdoba results, our commitments to reduce G&A and to return cash to shareholders contributed to a 27 percent increase in operating earnings per share for the quarter. Consistent with restaurant and retail industry data, we've seen an abrupt downturn in February sales trends for both brands. We believe some of this slowdown may be attributable to delayed tax refunds, as well as record rainfall and flooding in California over the past few weeks which have impacted our Jack in the Box results.

Comp guidance:

• For Q2, same-store sales of flat to down 2.0 percent at Jack in the Box system restaurants versus flat same-store sales in the year-ago quarter. Same-store sales of down 1.0 to 3.0 percent at Qdoba company restaurants versus a 3.1 percent increase in the year-ago quarter.
• For fiscal 2017: Same-store sales increase of approximately 2.0 percent at Jack in the Box system restaurants. Same-store sales of approximately flat at Qdoba company restaurants.

Jack in the Box (JACK) reported earnings Wed 3 Aug 2016 (a/h)

• Reports Q2 EPS beat, and guides FY16 EPS above consensus.

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Jack In The Box (JACK) reported earnings on Thur 18 Feb 2016

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The company reported an earnings miss on in-line revenue while guiding FY16 EPS below-consensus.

** 3 weeks later **

Jack In The Box (JACK) reported earnings Tue 17 Nov 2015 (a/h)

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Jack In The Box misses by $0.03, reports revs in-line; guides Q1 comps; sees FY16 EPS above consensus  :

• Reports Q4 (Sep) earnings of $0.62 per share, excluding non-recurring items, $0.03 worse than the Capital IQ Consensus of $0.65; revenues rose 2.7% year/year to $354.1 mln vs the $356.42 mln Capital IQ Consensus. 
  • Jack in the Box company comps +4.1% vs. +3.5-5.5% guidance; +6.2% including franchises.
  • Qdoba company comps +6.1% vs. +5-7% guidance; +6.6% including franchises.
• Co sees Q1 Jack in the Box co comps +1-3%; Qdoba +0-2%
• Co issues upside guidance for FY16, sees EPS of $3.55-3.70, excluding non-recurring items, vs. $3.55 Capital IQ Consensus, with JB co comps +2-4% and Qdoba co comps +2-4%; operating margin ~20-20.5%.