Restaurants

Jack in the Box leaps 10% as it evaluates potential alternatives for Qdoba

Key Points
  • Jack in the Box retained Morgan Stanley to help evaluate alternatives for Qdoba.
  • The company reported EPS of 98 cents on $369 million in revenue.
  • Company-owned stores saw sales decline more than analysts had expected.
Jack jumps on earnings
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Jack jumps on earnings

Shares of Jack in the Box surged after the company said it had retained Morgan Stanley to evaluate potential alternatives for Mexican chain Qdoba.

The company said that its overall valuation has been "impacted by having two different business models."

The stock surged more than 10 percent in after-hours trade.

Jack in the Box also said comparable-store sales at company-owned stores declined 2.4 percent, more than the 1.7 percent decrease analysts had projected, according to a StreetAccount consensus estimate.

The San Diego, Calif.-based company also reported earnings of 98 cents per share on $369 million in revenue. Wall Street had expected earnings of 91 cents a share on $369 million in revenue, according to Thomson Reuters consensus estimates.

In the comparable year-ago period, Jack in the Box had reported earnings of 85 cents a share on $361 million in revenue.