Latest news with #DawnHooper
Yahoo
4 days ago
- Business
- Yahoo
JACK Q1 Earnings Call: Revenue Misses Expectations Amid Cost Pressures and Technology Upgrades
Fast-food chain Jack in the Box (NASDAQ:JACK) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 7.8% year on year to $336.7 million. Its non-GAAP EPS of $1.20 per share was 4.2% above analysts' consensus estimates. Is now the time to buy JACK? Find out in our full research report (it's free). Revenue: $336.7 million (7.8% year-on-year decline) Adjusted EPS: $1.20 vs analyst estimates of $1.15 (4.2% beat) Adjusted Operating Income: $24.53 million vs analyst estimates of $49.19 million (7.3% margin, 50.1% miss) Adjusted EBITDA Margin: 19.7% Locations: 2,183 at quarter end, down from 2,195 in the same quarter last year Same-Store Sales fell 4.3% year on year (-2.3% in the same quarter last year) Market Capitalization: $365.5 million Jack in the Box's first-quarter results were shaped by a challenging consumer environment and company-specific headwinds. CEO Lance Tucker attributed the revenue decline to persistent negative traffic trends, particularly among lower-income consumers, and acknowledged that technology system upgrades caused temporary disruptions in restaurant operations. Management emphasized the importance of its barbell strategy—offering both value and premium menu items—to drive same-store sales, and highlighted continued digital growth, with digital sales reaching 18% of the system. Interim CFO Dawn Hooper noted that increased labor costs, especially wage inflation in California, as well as higher utilities and operating expenses, further pressured margins during the quarter. Looking ahead, management is focused on executing its Jack on Track plan, which includes simplifying operations, modernizing technology, and closing underperforming locations to strengthen the business for long-term growth. Lance Tucker stated, 'Driving same-store sales is, and always will be, our top priority,' and emphasized ongoing investments in digital channels and the rollout of new point-of-sale systems. The company also plans to accelerate cash flow to pay down debt while maintaining technology and re-imaging investments. As Jack in the Box navigates a cautious consumer environment and cost inflation, management sees digital and menu innovation, along with a return to consistent net unit growth, as key levers for future performance. Management pointed to consumer traffic declines, technology upgrades, and cost inflation as key factors that affected the quarter, while outlining steps to reposition the business for improved performance. Consumer traffic declines: The company saw continued negative traffic, particularly among value-conscious and lower-income consumers, which led to weaker same-store sales. Management noted that these pressures are widespread across the quick-service restaurant industry, but Jack in the Box may be feeling the impact more acutely due to its customer demographics. Technology system upgrades: The rollout of a new point-of-sale (POS) system and flip kiosks in nearly 1,500 restaurants caused temporary operational disruptions, negatively affecting sales. CEO Lance Tucker stated that while these technology challenges are being resolved, ongoing integration of legacy systems remains a focus area. Digital and loyalty growth: Digital sales reached 18% of systemwide sales, with management highlighting increased activity in first-party digital channels and loyalty program engagement. The company aims to achieve 20% digital sales ahead of schedule as part of its ongoing modernization efforts. Margin pressures from wage and commodity inflation: Labor costs rose significantly due to wage inflation, particularly in California following minimum wage increases. Food and packaging costs also rose, though partially offset by increased beverage funding from a new contract. These factors contributed to a decline in restaurant-level margins. Asset-light strategy and restaurant closures: Management reiterated its commitment to an asset-light model, emphasizing that the upcoming closure of underperforming restaurants is intended to enhance unit economics and support future franchise-led expansion. The Jack on Track plan also includes strengthening the balance sheet and prioritizing technology investment. Management expects ongoing macroeconomic headwinds, digital initiatives, and operational streamlining to drive performance in the coming quarters. Digital and menu innovation: The company will continue investing in digital ordering, loyalty programs, and new menu items—such as flavored curly fries and expanded munchie meal options—to attract both value-oriented and premium-seeking customers. Management believes these initiatives can help drive higher average checks and improve traffic trends over time. Cost control and operational efficiency: Jack in the Box plans to close underperforming restaurants and further modernize its technology infrastructure, aiming to improve profitability and cash flow. The company also intends to prioritize franchise-led growth in new markets while reducing its involvement in direct ownership. Industry and consumer challenges: Management remains cautious about the near-term outlook, citing persistent inflationary pressures on labor and commodities, as well as a cautious consumer environment. CEO Lance Tucker acknowledged that traffic trends remain soft and that the company will need to balance value offerings with margin protection. Looking forward, the StockStory team will closely monitor (1) the impact of digital and menu innovation on reversing negative traffic trends, (2) the execution and financial effects of the planned restaurant closures and technology modernization, and (3) progress on franchise-led expansion into new markets. Updates on the Del Taco strategic review and any developments in cost management will also be key indicators of future momentum. Jack in the Box currently trades at a forward P/E ratio of 3.7×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Business Wire
28-05-2025
- Business
- Business Wire
Jack in the Box Inc. Announces Dawn Hooper as Its Chief Financial Officer
SAN DIEGO--(BUSINESS WIRE)-- Jack in the Box Inc. (NASDAQ: JACK) and its Board of Directors announced Dawn Hooper as the chief financial officer for Jack in the Box, effective immediately. Hooper, a Jack in the Box veteran of 25 years, previously served as interim principal financial officer for Jack in the Box from August 2020 to January 2021, from February 2023 to August 2023, and from October 2024 to present, and most recently held the role of senior vice president, controller since December 2022. She has been with the Company since October 2000 and throughout her tenure, has held key leadership roles within Jack in the Box's finance organization, including assistant controller, vice president of financial reporting and senior manager of corporate accounting. 'Dawn brings deep financial expertise, institutional knowledge, and proven leadership to the CFO role,' said Lance Tucker, Jack in the Box Chief Executive Officer. 'I've had the privilege of working with her throughout my tenure at the Company, including during my time as CFO from 2018 to 2020, when her guidance and partnership were invaluable. She has been instrumental in supporting the company through periods of transformation, and the Board and I have full confidence in her ability to lead our finance organization as we execute on our JACK on Track plan and beyond.' 'Having been part of this company's evolution over the past 25 years, I am honored to step into this role as CFO at such a pivotal time for Jack in the Box and continue contributing to a Company I care deeply about,' said Hooper. 'With strong fundamentals already in place, my focus will be on improving long-term financial performance, streamlining our business model, and positioning the company for sustainable growth in the years ahead.' Prior to joining the Company, she began her career with KPMG LLP where she worked from September 1993 to September 2000. She has more than 30 years of experience in accounting and finance. Hooper received her bachelor's degree in accounting from University of San Diego from the Knauss School of Business. About Jack in the Box Inc. Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box ®, one of the nation's largest hamburger chains with approximately 2,180 restaurants across 22 states, and Del Taco ®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 590 restaurants across 17 states. For more information on both brands, including franchising opportunities, visit and
