The following is a summary of the Jack in the Box Inc. (JACK) Q2 2024 Earnings Call Transcript:
Financial Performance:
Jack in the Box reported a Q2 system same-store sales decrease of 2.5% with company-owned comp decrease of 0.6% and franchise comp decrease of 2.6%.
Restaurant level margin was 23.6%, up by 220 basis points year on year.
The consolidated adjusted EBITDA was $75.7 million, a decrease from the previous year's $80.6 million.
Consolidated GAAP diluted earnings per share was $1.26, slightly lower compared to $1.27 in the previous year.
Debt at the quarter's end totaled $1.7 billion with an available borrowing capacity of $175.5 million.
For Fiscal Year 2024, the company predicts adjusted EBITDA of $325m-$330m with operating earnings per share of $6.25 -$6.40.
Business Progress:
During Q2, they opened three new Jack in the Box restaurants and three Del Taco restaurants, targeting 25 to 35 and 10 to 15 new respective openings this year.
Expansion has been made into Mexico with one restaurant with plans for two more this year.
Refranchised 13 Del Taco restaurants and signed deals to expand in Florida and Tallahassee.
Their $50 million CRAVED reimage and refresh program has been rolled out to the franchise system.
The new Munchies Under $4 platform was launched and systemwide Wings are planned to launch by the month's end.
A partnership with Qu aims to deploy a new point-of-sale system across all Jack in the Box restaurants.
Digital growth is a key focus, with first-party platforms reporting over 80% growth for the quarter.
Point-of-sale system rollout and kiosk installations are the key technology focuses aiming for full implementation by 2025.
A relaunched product, the Smashed Jack, significantly improved the average check by 2%.
93 development agreements for 409 restaurants indicate a growth in the development pipeline promising future expansions.
More details: Jack in the Box IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.