Jack in the Box Inc. (NASDAQ:JACK) reported downbeat earnings for its second quarter, while sales exceeded views.
The San Diego-based JACK reported Jack in the Box® system same-store sales decreased 4.2% for the quarter. Company same-store sales decreased 4.1% in the second quarter driven by average check growth of 6.4% while transactions decreased 10.5%. As previously disclosed, system same-store sales increased 5.2% in the seven weeks ended March 8, 2020, prior to any impacts from the COVID-19 pandemic.
Earnings from continuing operations were $11.5 million, or $0.50 per diluted share, for the second quarter of fiscal 2020 compared with $25.1 million, or $0.96 per diluted share, for the second quarter of fiscal 2019.
Operating Earnings per Share, a non-GAAP measure, were $0.50 in the second quarter of fiscal 2020 compared with $0.99 in the prior year quarter. A reconciliation of non-GAAP Operating Earnings per Share to GAAP results is provided below, with additional information included in the attachment to this release.
Said CEO Lenny Comma, "Our same-store sales growth during the first seven weeks of the quarter exemplified our strategy of combining compelling bundles at competitive price points with innovation, including the menu addition of Tiny Tacos. Tiny Tacos helped to re-establish our equity in Tacos while delivering a craveable product at a great price.
"As we navigate the COVID-19 pandemic, I am proud of the way our teams in the restaurant, our employees, our franchisees and partners have responded nimbly to the changing occasions of our consumers."
Shares dropped $2.68, or 4.2%, to $61.03
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