Jack In The Box CEO Buys $3.3M+ in Stock After Lagging Earnings Report

09:44 08/12/2018

Jack In The Box Inc., JACK  disclosed that Chairman and Chief Executive Officer, Leonard Comma, added an additional 45,960 shares in the company for an average of $73.53 per share, for a total value of $3,379,440.00.

The stock purchase transaction comes two days after Jack in the Box Inc. JACK  reported financial results for the third quarter ended July 8, 2018.

Earnings from continuing operations were $48.1 million, or $1.70 per diluted share, for the third quarter of fiscal 2018 compared with $31.3 million, or $1.05 per diluted share, for the third quarter of fiscal 2017.

The company completed the sale of Qdoba Restaurant Corporation on March 21, 2018. Qdoba results are included in discontinued operations for all periods.

Lenny Comma, chairman and chief executive officer, said, "Our third quarter operating results were in line with our expectations, with system same-store sales returning to positive territory. We are pleased that this momentum has continued into the fourth quarter without resorting to deep discounting that we believe is not in the best interests of the long-term health of the brand.

"With the refranchising of 42 Jack in the Box® restaurants in the third quarter and 7 thus far in the fourth quarter, our franchise mix now stands at approximately 94 percent. We expect to sell one additional restaurant in the fourth quarter which will complete our refranchising initiative.

"We remain firmly committed to returning cash to shareholders with the purchase of $100 million of stock in the quarter and $200 million thus far this year. Following the completion of our longer-term financing plans, we plan to increase our leverage up to 5.0 times EBITDA and expect to return more than $1 billion over the next four years to our shareholders in the form of share repurchases and dividends.

"We look forward to sharing additional details about our long-term goals on our earnings call tomorrow morning. Our plans are focused on meeting evolving consumer needs, with emphasis on improving operations consistency and targeted investments designed to maximize our returns. To improve our brand relevance, by the end of fiscal 2021 we expect at least 80 percent of the system to have significant upgrades to the drive-thru experience or to be remodeled. Our key fiscal 2022 targets include system-wide sales of $4 billion, adjusted EBITDA of approximately $300 million, and free cash flow of approximately $175 million.”

Jack in the Box JACK  system same-store sales increased 0.5 percent for the quarter and lagged the QSR sandwich segment by 2.1 percentage points for the comparable period.

The company announced on August 3, 2018, that its Board of Directors declared a cash dividend of $0.40 per share on the company's common stock. The dividend is payable on September 5, 2018, to shareholders of record at the close of business on August 20, 2018.

Jack In The Box Inc., (NASDAQ:JACK) JACK  repurchased approximately 1.2 million shares of its common stock in the third quarter of 2018 at an average price of $82.78 per share for an aggregate cost of $100.0 million. The company currently has approximately $181.0 million remaining under a stock-buyback program authorized by its Board of Directors that expires in November 2019.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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