Restaurant chain Jack in the Box (NASDAQ: JACK) sprang out of its house Wednesday pretty much the way the toy does, after the company posted better-than-expected earnings for its second quarter. The company also disclosed that it has retained Morgan Stanley to evaluate potential alternatives for Qdoba.
The company said that its overall valuation has been "impacted by having two different business models."
JACK also said comparable-store sales at company-owned stores declined 2.4%, more than the 1.7% decrease analysts had projected, according to industry estimates.
The San Diego, Calif.-based company also reported earnings of 98 cents per share on $369 million in revenue. Wall Street had expected earnings of 91 cents a share on $369 million in revenue.
In the comparable year-ago period, Jack in the Box had reported earnings of 85 cents a share on $361 million in revenue.
What’s more, Jack in the Box authorized an additional $100.0 million stock buyback program. This leaves approximately $181.0 million remaining under stock buyback programs authorized by the company's Board of Directors that expire in November 2018.
The board also declared a quarterly cash dividend last week of $0.40 per share on the company’s common stock. The dividend is payable on June 12, to shareholders of record at the close of business on May 30.
For its part, Colorado-founded but California-based Qdoba Mexican Eats is a chain of fast casual restaurants in the United States and Canada serving Mexican-style cuisine.
The stock price galloped $5.85, or 5.7%, to $107.74 as the close neared on Wednesday.
