Jack in the Box Inc. (NASDAQ:JACK) Revenues Led By Mexican Unit Qdoba

Jack in the Box Inc. (NASDAQ:JACK) announced its quarterly results and beat estimates solidly. The fast food giant reported revenue of $468 million for the first quarter of 2015. That was a same period gain of 4%. The company’s EPS was 93 cents and that number beat estimates by 6 cents. The company’s per share gain was a 24% increase over the same period a year ago. Qdoba, the burger maker’s Mexican restaurant was a big contributor posting same store gains of over 24%. For the company, its Jack in the Box outlets showed a 3.9% increase of sales which came in a tough environment for the fast-food industry.

Read why analyst may see a swing in the momentum for JACK.

Qdoba Revamp

Jack in the Box Inc. (NASDAQ:JACK) had just completed a menu change at the Mexico-based shops and simplified the pricing structure. Executives stated it was well received by customers and it showed in the Individual stores gains. The company said its new menu pricing structure at Qdoba was “well received” by the customers and the Mexican chain’s big comps reflects huge growth in catering sales, less discounting and positive traffic. The gains come at a time when other fast food operators are struggling to gain or even hold on to market share. The biggest players in the segment like McDonalds continue to struggle with lackluster same store growth and also with the tarnished reputation of fast food. Jack in the Box Inc. (NASDAQ:JACK)’s direct competitor Burger King recently reported large losses on its books.

Changing Industry

Customers are migrating from the speed, low pricing and convenience of fast food to the world of fast-casual dining. Jack in the Box found a way to still etch out solid same store growth while maintaining a profit. The addition of Qdoba was important and provided Jack in the Box Inc. (NASDAQ:JACK) with a presence in fast casual.

Technicals

The stock has been on a long upward trend and the recent earnings will help to maintain that. Everything about the chart is healthy and barring some unforeseen event the stock should continue to appreciate.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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