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JACK (Jack In The Box) Degree of Operating Leverage : 3.19 (As of Jun. 2024)


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What is Jack In The Box Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Jack In The Box's Degree of Operating Leverage for the quarter that ended in Jun. 2024 was 3.19. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Jack In The Box's Degree of Operating Leverage or its related term are showing as below:

JACK's Degree of Operating Leverage is ranked worse than
69.21% of 341 companies
in the Restaurants industry
Industry Median: 0.5 vs JACK: 3.19

Jack In The Box Degree of Operating Leverage Historical Data

The historical data trend for Jack In The Box's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Jack In The Box Degree of Operating Leverage Chart

Jack In The Box Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.44 -0.79 4.44 -0.50 0.67

Jack In The Box Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Jan24 Jun24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.47 1.13 0.67 -56.01 3.19

Competitive Comparison of Jack In The Box's Degree of Operating Leverage

For the Restaurants subindustry, Jack In The Box's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Jack In The Box's Degree of Operating Leverage Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Jack In The Box's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Jack In The Box's Degree of Operating Leverage falls into.



Jack In The Box Degree of Operating Leverage Calculation

Jack In The Box's Degree of Operating Leverage for the quarter that ended in Jun. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 26.854 (Jun. 2024) / 306.59 (Jun. 2023) - 1 )/( 1229.193 (Jun. 2024) / 1722.555 (Jun. 2023) - 1 )
=-0.9124/-0.2864
=3.19***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Jack In The Box  (NAS:JACK) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Jack In The Box Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Jack In The Box's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Jack In The Box Business Description

Traded in Other Exchanges
Address
9357 Spectrum Center Boulevard, San Diego, CA, USA, 92123
Jack In The Box Inc operates quick-service restaurants and fast-casual restaurants in California, the USA under the brands Jack in the Box. The company menu offers burgers, tacos, regular and curly fries, specialty sandwiches, salads and ice cream shakes. These foods are available with the option of customization as per customer requirements. The company also offer catering and delivery services to its customers. Jack in the Box and Del Taco restaurant brands are the two operating segments, out of which Jack in the box generates maximum revenue.
Executives
Brian M. Scott officer: EVP, Chief Financial Officer 12400 HIGH BLUFF DRIVE, SUITE 100, SAN DIEGO CA 92130
Darin S Harris director, officer: Director & CEO C/O JACK IN THE BOX INC. 9330 BALBOA AVE, SAN DIEGO CA 92123
Tony J Darden officer: SVP, Chief Operating Officer C/O JACK IN THE BOX INC., 9357 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Steven Piano officer: SVP, Chief People Officer 1550 UTICA AVENUE SOUTH, SUITE 100, MINNEAPOLIS MN 55416
Michael W Murphy director C/O JACK IN THE BOX, 9330 BALBOA AVE, SAN DIEGO CA 92123
Ryan Lee Ostrom officer: EVP, Chief Marketing Officer 300 SIXTH AVENUE, PITTSBURGH PA 15222
Dawn E Hooper officer: SVP Controller / Interim PFO C/O JACK IN THE BOX INC., 9357 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Dean C Gordon officer: SVP - CHF SUPPLY CHAIN OFFICER C/O JACK IN THE BOX INC, 9330 BALBOA AVE, SAN DIEGO CA 92123
Timothy T Linderman officer: SVP Chf Fran&Corp Dev Officer C/O JACK IN THE BOX INC., 9357 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Richard D Cook officer: SVP, Chief Technology Officer C/O JACK IN THE BOX INC., 9357 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Sarah L Super officer: SVP - CHF LEGAL & RISK OFFICER C/O JACK IN THE BOX INC. 9330 BALBOA AVE, SAN DIEGO CA 92123
Chad Gretzema officer: DEL TACO BRAND PRESIDENT 25521 COMMERCENTRE DRIVE, SUITE 200, LAKE FOREST CA 92630
Timothy E Mullany officer: EVP, CHIEF FINANCIAL OFFICER 3551 PLANO PARKWAY, THE COLONY TX 75056
Guillermo Jr Diaz director C/O JACK IN THE BOX INC, 9357 SPECTRUM CENTER BLVD, SAN DIEGO CA 92123
Sharon Price John director 1954 INNERBELT BUSINESS CTR. DR., ST. LOUIS MO 63017