Jack in the Box (JACK) Closes Up as Earnings Due Out This Week
NEW YORK (TheStreet) --Shares of Jack in the Box (JACK) - Get Report closed higher by 0.44% to $70.50 on Monday afternoon, as the fast food restaurant chain company prepares to release its fiscal 2015 fourth quarter earnings results this week.
The company will release its latest financial results after the market close on Tuesday afternoon.
Analysts are expecting Jack in the Box to post a year over year rise in both earnings per share and revenue for the most recent quarter.
The company has been forecast to report earnings of 65 cents per share on revenue of $356.83 million for the three month period ended in September.
Jack in the Box reported non-GAAP earnings of 54 cents per share on revenue of $344.7 million for the fiscal 2014 fourth quarter.
Based in San Diego, the company operates restaurant franchises under the Jack in the Box and Qdoba brands.
Separately, TheStreet Ratings team rates JACK IN THE BOX INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate JACK IN THE BOX INC (JACK) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, impressive record of earnings per share growth and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- JACK's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 3.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- JACK IN THE BOX INC has improved earnings per share by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JACK IN THE BOX INC increased its bottom line by earning $2.26 versus $1.84 in the prior year. This year, the market expects an improvement in earnings ($3.02 versus $2.26).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 8.6% when compared to the same quarter one year prior, going from $24.70 million to $26.83 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, JACK IN THE BOX INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $74.23 million or 17.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 2.77%.
- You can view the full analysis from the report here: JACK
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.