NEW YORK (TheStreet) -- Shares of Jack in the Box (JACK - Get Report) were gaining by 2.6% to $76.99 in after-hours trading on Monday, after the fast food company announced a $200 million share repurchase program.
The $200 million buyback program will begin in fiscal year 2016 and expire in November 2017, Jack in the Box said. The company's fiscal year 2016 will begin in October 2015.
Additionally the company has repurchased about 3.743 million shares in fiscal 2015 at an average price of $84.71 a share for an aggregate cost of$317.1 million, including $65.5 million in the fiscal fourth quarter that ends September 30.
"Over the last five years, we have demonstrated our commitment to returning our growing free cash flow to shareholders through the purchase of $1 billion in stock and the initiation of a dividend in 2014," company CEO Lenny Comma said in a statement. "The additional authorization coupled with the 50 percent increase in our dividend announced in May underscores the confidence both the management team and our Board of Directors have in our business model and growth plans."
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 some important positives, 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 4.1%. 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 significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. 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 -7.79%.
- You can view the full analysis from the report here: JACK