Jack in the Box Surges After Same-Store Sales Top Estimates

(Bloomberg) -- Jack in the Box Inc. jumped in late trading after posting same-store sales that topped analysts’ projections and raising its full-year outlook.

• Systemwide same-store sales, a key metric for restaurants, increased 2.7% in the third quarter, exceeding the 1.6% growth estimate, according to Consensus Metrix.

Key Insights

• The results reinforce that American diners are splurging on burgers and eating out this summer. Jack in the Box follows McDonald’s Corp. and Starbucks Corp. in reporting faster-than-expected sales acceleration.
• The company sees the trend continuing. It raised its full-year outlook for same-store sales to increase by at least 1%. Previously it forecast flat to 1% growth.
• Chief Executive Officer Lenny Comma said the chain is seeing improved traffic and customers are responding to its value-bundle strategy. He said momentum “has accelerated thus far” into the current quarter.

Market Reaction

• The shares climbed as much as 8.9% to $81.03 in after-hours trading. The stock had dropped 4.1% this year through Wednesday’s close, trailing the 15% gain in the S&P 500 Index.

Get More

For more on the results, click here.
For the company statement, click here.

To contact the reporter on this story: Lisa Wolfson in Boston at lwolfson@bloomberg.net

To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder

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