Americans Are Still Fat as Hell: $JACK, $RRGB Surge in After Hours Earnings Jackpot Surprise

These are two of the worst restaurants in American history and both stocks are soaring in the after-hours on better than expected results. In the case of JACK, their results were actually abysmal, missing and blaming the rain on the lack of foot traffic following tax refund distributions. What an abhorrent and irrevocably pathetic excuse for mediocrity. Nevertheless, JACK is sprinting higher based off future guidance — which is LOWER.

HAHAHAHAAHAHAHA. Stupid fuckers. Everyone knows Qdobo is the retarded half-cousin of Chipotle. No one unironically eats there. It’s one of those places that you visit when everything else is closed, or CMG is busy poisoning people with thier local sources burritos.

Red Robin Gourmet is a piece of shit wanna be chic hamburger joint. Seriously, it’s like Friendlies, but less cringy. I don’t know of anyone who has ever eaten there. I am familiar with it only because it was domosciled in the King’s Plaza shopping mall in Brooklyn. Growing up, I’d visit that crimewave of a shopping experience and sometimes grab a bite there, while continuously peering over my shoulder for prospective combatants.

Red Robin Gourmet beats by $0.32, reports revs in-line; guides FY17 EPS above consensus (58.00 -1.25)

Reports Q1 (Mar) earnings of $0.89 per share, excluding non-recurring items, $0.32 better than the Capital IQ Consensus of $0.57; revenues rose 4.1% year/year to $418.6 mln vs the $416.48 mln Capital IQ Consensus.

Co issues upside guidance for FY17, sees EPS of $2.80-3.10, excluding non-recurring items, vs. $2.76 Capital IQ Consensus Estimate

Co expects ~45% of the $2.80-3.10 in earnings to come in the first half of 2017 and 55% in the second half of 2017

Revenue in the quarter increased $24.8 million primarily due to new restaurant openings and acquired restaurants, partially offset by decreases of $4.6 million, or 1.2%, in comparable restaurant revenue and $3.8 million from closed restaurants…

Franchise and other revenue decreased $0.3 million, primarily driven by the loss of royalties from 13 franchised restaurants acquired during the first quarter of 2016

System-wide restaurant revenue (which includes franchised units) for the first quarter of 2017 totaled $498.8 million, compared to $493.0 million for the first quarter of 2016.

Comparable restaurant revenue decreased 1.2% in the first quarter of 2017 compared to the same period a year ago, driven by a 1.7% decrease in guest counts, partially offset by a 0.5% increase in average guest check

The increase in average guest check comprised a 1.6% increase in pricing and a 1.1% decrease in menu mix

During the first quarter of 2017, the Company opened six Red Robin restaurants, including one restaurant that was temporarily closed during 2016, and relocated one Red Robin restaurant. Co’s franchisees opened one restaurant during the first quarter of 2017

Reports Q2 (Mar) earnings of $0.98 per share, excluding non-recurring items, $0.07 better than the Capital IQ Consensus of $0.91; revenues rose 2.3% year/year to $369.4 mln vs the $369.36 mln Capital IQ Consensus.

Jack in the Box comps -0.8% vs. (2)-0% guidance; Qdoba -3.2%. Consolidated restaurant operating margin, a non-GAAP measure, decreased by 240 basis points to 17.5 percent of sales in the second quarter of 2017, compared with 19.9 percent of sales in the year-ago quarter.

Q3 Guidance: Same-store sales of up 1.0 to down 1.0 percent at Jack in the Box system restaurants versus a 1.1 percent increase in same-store sales in the year-ago quarter. Same-store sales of up 1.0 to down 1.0 percent at Qdoba company restaurants versus a 1.0 percent increase in the year-ago quarter.

Co issues downside guidance for FY17, lowers EPS to $4.10-4.30 from $4.25-4.45, excluding non-recurring items, vs. $4.35 Capital IQ Consensus Estimate. Same-store sales increase of ~1.0 percent at Jack in the Box system restaurants (down from +2%). Same-store sales decrease of ~1.0 to 2.0 percent at Qdoba company restaurants (from flat). Commodity costs of ~flat for both Jack in the Box and Qdoba. Consolidated restaurant operating margin of ~19.0 percent, depending on the timing of refranchising transactions and the margins associated with the restaurants sold.

“After a sluggish start to the quarter, which we believe was attributable to delayed tax refunds and record rainfall in California, Jack in the Box system same-store sales improved to positive territory as these transitory issues passed and we pivoted our advertising towards value messages.

However, same-store sales at Qdoba company restaurants worsened in the latter two months of the quarter, as we lapped more aggressive discounting in last year’s second quarter. While margins at Qdoba were still disappointing, they improved to over 16 percent in the final month of the quarter as we were able to manage labor and food costs more effectively than in the first quarter, despite the larger decline in same-store sales. We are also encouraged that Qdoba company same-store sales have improved thus far in the third quarter.”

JACK is higher by 10% and RRGB by 16% in an after hours casino royale.