Jack in the Box Inc. isn’t a fan of McDonald’s all-day breakfast.
The restaurant chain posted lower profit and sales than analysts estimated last quarter, hurt in part by McDonald’s Corp. offering McMuffins and other morning fare during the rest of the day. The impact was especially strong between 10:30 a.m. to noon, San Diego-based Jack in the Box said in a statement Wednesday.
The shares plunged 16 percent to $64.48 on Thursday after the results were released, sending the stock to its lowest level since September 2014. The company also gave a dim outlook for the current quarter, saying same-store sales at Jack in the Box’s company restaurants could be down as much as 3 percent. Competitors’ aggressive discounts hampered results as well, the company said.
McDonald’s started selling breakfast during all hours at U.S. restaurants in October, bowing to a longtime request from customers. In January, the company posted its best quarterly sales growth in almost four years, crediting all-day morning fare for the boost. Chief Executive Officer Steve Easterbrook has also focused on speeding up service and improving order accuracy.