Jack in the Box (NASDAQ:JACK) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday.
According to Zacks, “Jack in the Box’s shares have underperformed its industry year to date. The company’s fourth-quarter fiscal 2017 earnings of 73 cents lagged the Zacks Consensus Estimate by 18% and fell 24.3% year over year (y/y) due to lower revenues and restaurant operating margins. Revenues of $338.7 million also missed the consensus mark and declined 15% y/y. Notably, comps at the Qdoba brand have been suffering due to poor restaurant level execution. A choppy sales environment in the U.S. restaurant space has been further hurting comps at both the brands, and might continue doing so. Even so, Jack in the Box’s premium and value offerings, along with increased focus on menu innovation, franchising and delivery should somewhat aid in spurring growth. Efforts to reinvigorate the Qdoba brand along with management’s plan of even considering alternatives to the brand also bode well. Still, high costs might continue to hurt margins.”
A number of other equities research analysts also recently weighed in on the company. SunTrust Banks set a $109.00 price objective on Jack in the Box and gave the company a “buy” rating in a report on Friday, December 1st. Wedbush reaffirmed a “hold” rating and set a $104.00 price objective on shares of Jack in the Box in a report on Friday, December 1st. UBS set a $105.00 price objective on Jack in the Box and gave the company a “hold” rating in a report on Thursday, November 30th. Robert W. Baird set a $115.00 price objective on Jack in the Box and gave the company a “buy” rating in a report on Monday, November 27th. Finally, Cowen reaffirmed a “hold” rating and set a $99.00 price objective on shares of Jack in the Box in a report on Monday, November 27th. One research analyst has rated the stock with a sell rating, six have issued a hold rating and nine have assigned a buy rating to the company. The stock currently has a consensus rating of “Buy” and an average target price of $112.62.
Shares of Jack in the Box (NASDAQ:JACK) opened at $104.29 on Tuesday. Jack in the Box has a 1 year low of $90.89 and a 1 year high of $113.30. The firm has a market capitalization of $3,124.66, a PE ratio of 27.36, a P/E/G ratio of 1.90 and a beta of 0.51. The company has a debt-to-equity ratio of -2.79, a quick ratio of 0.51 and a current ratio of 0.53.
Jack in the Box (NASDAQ:JACK) last released its earnings results on Wednesday, November 29th. The restaurant operator reported $0.73 earnings per share for the quarter, missing analysts’ consensus estimates of $0.89 by ($0.16). Jack in the Box had a negative return on equity of 30.55% and a net margin of 8.71%. The firm had revenue of $338.75 million for the quarter, compared to analyst estimates of $341.34 million. During the same period last year, the business earned $1.03 earnings per share. The firm’s quarterly revenue was down 15.0% compared to the same quarter last year. analysts anticipate that Jack in the Box will post 4.49 EPS for the current year.
In other news, insider Frances L. Allen sold 530 shares of Jack in the Box stock in a transaction that occurred on Monday, November 6th. The shares were sold at an average price of $102.71, for a total value of $54,436.30. Following the completion of the transaction, the insider now owns 10,979 shares in the company, valued at $1,127,653.09. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.10% of the company’s stock.
Several large investors have recently bought and sold shares of the company. Jana Partners LLC bought a new position in shares of Jack in the Box in the third quarter valued at approximately $134,200,000. California Public Employees Retirement System raised its stake in shares of Jack in the Box by 8.1% in the third quarter. California Public Employees Retirement System now owns 95,093 shares of the restaurant operator’s stock valued at $9,692,000 after acquiring an additional 7,093 shares during the last quarter. Janus Henderson Group PLC raised its position in Jack in the Box by 14.2% in the 3rd quarter. Janus Henderson Group PLC now owns 623,109 shares of the restaurant operator’s stock worth $63,507,000 after purchasing an additional 77,557 shares during the last quarter. Jane Street Group LLC raised its position in Jack in the Box by 124.0% in the 3rd quarter. Jane Street Group LLC now owns 5,132 shares of the restaurant operator’s stock worth $523,000 after purchasing an additional 26,495 shares during the last quarter. Finally, Vident Investment Advisory LLC bought a new position in Jack in the Box in the 3rd quarter worth approximately $203,000. Institutional investors own 99.26% of the company’s stock.
About Jack in the Box
Jack in the Box Inc operates and franchises Jack in the Box quick-service restaurants (QSRs) and Qdoba Mexican Eats (Qdoba) fast-casual restaurants. The Company operates in two segments: Jack in the Box and Qdoba restaurant operations. Qdoba is a fast-casual Mexican food brand in the United States, offering food items including burritos, tacos, salads, and quesadillas.
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