Jack In The Box (JACK – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Brian Harbour from Morgan Stanley maintained a Hold rating on the stock and has a $70.00 price target.
Brian Harbour has given his Hold rating due to a combination of factors including a challenging quarter for Jack In The Box, as evidenced by negative same-store sales (SSS) and issues with new product launches. The fast-food chain faced a tough consumer environment, particularly impacting its more price-sensitive customer base, and experienced delays in the launch of the Smashed Jack Burger, which had an adverse impact on sales.
Despite some positive notes on cost management, Harbour remains cautious given the industry’s intense focus on value and the potential for increased competition in this area. Jack In The Box’s cost containment, particularly in food costs and pricing, was seen as a positive, but with the expectation of higher wages and ongoing labor pressures, there is some concern about the sustainability of these cost advantages. Additionally, while the company’s valuation is at the lower end of its historical range, which might provide some support, the overall uncertainty in the financials leads to a continued Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JACK in relation to earlier this year.
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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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