Jack In The Box (JACK) stock surged 9.81% in the pre-market trading session on Wednesday, following the company's better-than-expected first-quarter 2025 results and positive outlook for growth.
The fast-food chain reported a same-store sales increase of 0.4% for the Jack In The Box brand during the first quarter, despite facing challenges from a difficult macroeconomic environment. While the company expects negative same-store sales in the second quarter due to ongoing pressures, its strong marketing calendar, menu innovation, and digital capabilities position it well to re-accelerate sales in the latter half of the year.
Jack In The Box plans to open between 35 and 45 new restaurants in fiscal 2025, including expansions into the Chicago and Florida markets. The company also completed a new beverage partner contract, which positively impacted its restaurant-level margins in the first quarter.
Furthermore, interim CEO Lance Tucker highlighted the company's focus on improving capital allocation, reducing debt levels, and unlocking free cash flow. These strategic initiatives aim to drive long-term shareholder value and position Jack In The Box for sustained growth.
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