Wunderlich Securities Sees Strong Start To FY15 For Jack In The Box

In a report published Wednesday, Wunderlich Securities analyst Robert M. Derrington reiterated a Buy rating and $100.00 price target on Jack in the Box Inc. (NASDAQ: JACK).

In the report, Wunderlich Securities noted, "Last night, Jack in the Box (JACK) posted much better than expected fiscal 1Q15 (Jan.) results including EPS from ops rising 24% to $0.93 vs. our $0.85/Street $0.87. The results reflect much better than expected system-SSS growth (JIB up 4.4%; Qdoba 14.0%), restaurant and operating margins, and a lower than projected share count. Supported by those results, management lifted its initial FY15 EPS guidance to $2.85-$2.97 (from $2.73 to $2.88) incl. JIB Co. SSS to 3.5%-4.5% (from 1.5%-2.5%), Qdoba Co. SSS to 7.5%-9.5% (from 6%-8%). Based on these much better than projected early FY15 results, both our $100 PT and prior EPS estimates are under review, with a positive bias."

Jack in the Box closed on Tuesday at $88.16.