In a report released today, Andrew Charles from TD Cowen maintained a Hold rating on Jack In The Box (JACK – Research Report), with a price target of $59.00.
Andrew Charles has given his Hold rating due to a combination of factors including concerns about sales performance and market competition. The recent second-quarter sales did not meet expectations, and current trends suggest continued underperformance relative to the industry. Despite Jack In The Box’s proactive measures, such as the introduction of new limited-time offerings and a value platform, there is uncertainty about their impact on the core business amidst a highly competitive quick-service landscape.
Further, Charles notes that even with product launches like the Smashed Jack Burger, sales mix and traffic have been unfavorable, contributing to a decline in same-store sales. The company’s guidance for future sales growth is also at the lower end, indicating potential challenges ahead. The intensification of value offerings by competitors and the overlap with lower-income consumers, who are particularly vulnerable in a challenging macroeconomic environment, may put additional pressure on Jack In The Box, justifying the Hold rating.
Charles covers the Consumer Cyclical sector, focusing on stocks such as Sweetgreen, Wingstop, and Restaurant Brands International. According to TipRanks, Charles has an average return of 12.5% and a 60.39% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $80.00 price target.
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Jack In The Box (JACK) Company Description:
Jack in the Box, Inc. engages in operating and franchising a chain of quick-service and fast-casual restaurants. It operates through the Jack in the Box Restaurant segments. The Jack in the Box Restaurant segment offers a broad selection of distinctive products including burgers like Jumbo Jack burgers, and product lines such as Buttery Jack burgers including the Brunchfast menu. The company was founded by Robert Oscar Peterson in 1951 and is headquartered in San Diego, CA.
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