Shares of the popular US-based restaurant chain Jack in the Box (NASDAQ:JACK) took a dive on Thursday after the company released its second-quarter financial results for fiscal 2018.
Earnings from the company’s continued operations, stood at only $25million USD, compared to the $31.4million that was earned during the second quarter of the previous fiscal year.
The company’s same-store sales also decreased and fell 0.1%.
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During the second quarter, Jack in the Box completed the transaction to sell its Qdoba Restaurant Corporation subsidiary to Apollo Global Management (NYSE:APO), for approximately $305 million. The deal officially closed on March 21, 2018.
Jack in the Box predicts that comparable sales should remain flat during the third quarter of 2018 and may only increase by one percent. The outlook for the full year of fiscal 2018 includes a same-store sales increase of one percent and the addition of 24 new Jack in the Box locations.
According to the company’s Chairman and CEO, Lenny Comma has said that “the sale of Qdoba marks an important milestone in the actions [they’re] taking to enhance shareholder value while creating an asset-light business model that is less capital intensive.”
Jack in the Box announced a $200m share repurchase program that was authorized by the company’s Board of Directors. This is in addition to previously authorized $100m share repurchase.
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Jack in the Box has already re-franchised 63 of its stores in the second quarter and have also begun to re-franchise a total of 29 more in the third quarter.
After the financial results were released on Thursday, share value for Jack in the Box fell approximately 7.5%. The company had reached a high share value of $87.72 and a low of $83.57 after opening at $87, as of 2:00 pm EDT.
Comparatively, the company closed at a share value of $91.37 on Wednesday.
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