Jack in the Box Inc. (NASDAQ:JACK) stock rose 0.61% (As on May 15, 11:24:45 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 24. Jack In The Box same-store sales decreased 2.5% in the second quarter, consisting of a decline in company-operated same-store sales of 0.6% and a decrease in franchise same-store sales of 2.6%. Systemwide sales for the quarter dropped 1.6%. Restaurant-Level Margin, a non-GAAP measure, was $23.3 million, or 23.6%, up from $20.4 million, or 21.4%, a year ago driven primarily by additional company-owned restaurants and commodity deflation. Franchise-Level Margin, a non-GAAP measure, was $71.7 million, or 40.4%, a decrease from $73.9 million, or 41.2%, a year ago. The decrease was mainly driven by the decline in sales for the quarter and the resulting decrease in rent and royalty revenue. Jack in the Box net restaurant count increased in the second quarter, with three restaurant openings and no restaurant closures. As of the second quarter, and since the launch of the development program in mid-2021, the company currently has 93 signed agreements for a total of 409 restaurants. Under these agreements, 44 restaurants have opened, leaving 365 remaining for future development.

Moreover, Del Taco same-store sales decreased 1.4% in the second quarter, comprised of franchise same-store sales decline of 1.1% and company-operated same-store sales decline of 1.8%. Del Taco expanded the restaurant count in the second quarter, with three restaurant openings and no restaurant closings. Company-Wide revenues decreased 7.7% to $365.3 million, compared to $395.7 million in the prior year quarter.

JACK in the second quarter of FY 24 has reported the adjusted earnings per share of $1.46, beating the analysts’ estimates for the adjusted earnings per share of $1.42. The company had reported the adjusted revenue decline of 7.7 percent to $365.35 million in the second quarter of FY 24, missing the analysts’ estimates for revenue of $368.64 million. Top-line performance was impacted by the shift in consumer behavior and an unexpected delay in the Smashed Jack launch, but sales have improved since its introduction in mid-March.

Additionally, the company declared a cash dividend of $0.44 per share, to be paid on June 25, 2024, to shareholders of record as of the close of business on June 6, 2024.

Jack In The Box slashed the upper end of its FY24 EPS outlook, revising the range from $6.25 – $6.50 to $6.25 – $6.40. The company now sees FY24 adjusted EBITDA of $325 million – $330 million (previously $325 million – $335 million).