Ask Matt: Does Jack in the Box have spring left?

Q: Does Jack in the Box have spring left?

A: Jack in the Box (JACK) is starting to look like one of the winners from Chipotle Mexican Grill’s (CMG) issues. While the company is best known for its burger chains, its Qdobe burrito business is showing strength.

The restaurant’s performance made an impression on investors Thursday. Shares soared more than 11% to roughly $98 a share following the company’s quarterly results. The company earned $1.07 a share, which topped forecasts by 23%, says S&P Global Market Intelligence. Jack in the Box’ quarterly adjusted bottom line was 41% higher than the same period a year ago. Namesake Jack in the Box restaurants saw revenue rise just 0.4% from the same quarter a year ago. But at its burrito chain Qdobe, revenue rose nearly 9% during the quarter, turning into an important growth driver. Analysts think the company can continue to drive cost savings to keep the bottom line growing. The company’s adjusted profit is expected to rise 22% to $3.65 a share in the current fiscal year. But revenue growth is a slower slog, expected to rise nearly 4%. Given the difficult growth prospects, analysts seem to think the stock has had its run. Analysts expect the stock to be worth $97.23 in 18 months, just about where it is now.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.