Jack in the Box's stock jumps toward an 18-month high after earnings beat and raised outlook, amid growth in traffic and average check

Shares of Jack in the Box Inc. (JACK) jumped 3.4% toward an 18-month high in premarket trading Wednesday, after the parent of burger and taco chains reported fiscal second-quarter profit and sales that rose above expectations and raised its full-year outlook, as growth in both average check and traffic provided a boost. Net income for the quarter to April 16 rose to $26.5 million, or $1.27 a share, from $7.8 million, or 37 cents a share, in the year-ago period. Excluding nonrecurring items, operating earnings per share of $1.47 beat the FactSet consensus of $1.22. Revenue grew 22.8% to $395.7 million, above the FactSet consensus of $385.1 million. Same-store sales for the Jack in the Box fast-food chain rose 9.5% to top the FactSet consensus of 7.2% growth and for Del Taco increased 3.2% to beat expectations for a 2.6% rise. Looking ahead, the company raised its operating EPS guidance range to $5.90 to $6.10 from $5.25 to $5.65. The stock has soared 39.7% year to date through Tuesday, while the S&P 500 has gained 7.0%.

-Tomi Kilgore

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05-17-23 0849ET

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