Jack in the Box Rallies After Its Earnings Beat Estimatesby
Jack in the Box Inc. shares rose the most in more than seven years after quarterly earnings topped analysts’ estimates, tamping down concerns that the fast-food industry is slowing.
Excluding some items, earnings amounted to 85 cents a share in the fiscal second quarter, the San Diego-based company said in a statement on Wednesday. Analysts had predicted 70 cents on average, according to data compiled by Bloomberg.
The report brought a bright spot to restaurant investors after a rough Wednesday. Remarks by Wendy’s Co. that industrywide sales are slowing sent stocks of several companies reeling. Jack in the Box was down 5.2 percent in regular trading that day before it released its results.
The company’s sales climbed to $361.2 million in the period, which ended April 10, topping the $360.3 million estimate.
The stock gained as much as 15 percent $74.82 in New York on Thursday, the biggest intraday increase since November 2008. Through Wednesday’s close, it had declined 15 percent this year.