Zacks Investment Research Downgrades Jack in the Box (JACK) to Strong Sell
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 analysts also recently commented on JACK. Wells Fargo & Company reissued an “outperform” rating and set a $120.00 price objective on shares of Jack in the Box in a research report on Thursday, August 10th. Telsey Advisory Group reissued a “market perform” rating on shares of Jack in the Box in a research report on Thursday, August 10th. Wedbush reaffirmed a “buy” rating on shares of Jack in the Box in a report on Friday, August 11th. TheStreet downgraded Jack in the Box from a “b-” rating to a “c” rating in a report on Wednesday, August 9th. Finally, BidaskClub raised Jack in the Box from a “sell” rating to a “hold” rating in a report on Tuesday, August 8th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and nine have assigned a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus target price of $112.62.
Jack in the Box (NASDAQ:JACK) last announced its quarterly earnings data on Wednesday, November 29th. The restaurant operator reported $0.73 EPS for the quarter, missing the Zacks’ consensus estimate 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 company had revenue of $338.75 million for the quarter, compared to analyst estimates of $341.34 million. During the same period in the prior year, the firm posted $1.03 earnings per share. The business’s quarterly revenue was down 15.0% compared to the same quarter last year. analysts forecast that Jack in the Box will post 4.58 EPS for the current year.
In other Jack in the Box news, insider Frances L. Allen sold 530 shares of the business’s stock in a transaction that occurred on Monday, November 6th. The stock was sold at an average price of $102.71, for a total value of $54,436.30. Following the completion of the sale, the insider now owns 10,979 shares in the company, valued at $1,127,653.09. The sale was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 2.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Jana Partners LLC purchased a new stake in Jack in the Box in the third quarter valued at approximately $134,200,000. California Public Employees Retirement System lifted its stake in 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 buying an additional 7,093 shares during the last quarter. Janus Henderson Group PLC lifted its stake in Jack in the Box by 14.2% in the third quarter. Janus Henderson Group PLC now owns 623,109 shares of the restaurant operator’s stock valued at $63,507,000 after buying an additional 77,557 shares during the last quarter. Jane Street Group LLC lifted its stake in Jack in the Box by 124.0% in the third quarter. Jane Street Group LLC now owns 5,132 shares of the restaurant operator’s stock valued at $523,000 after buying an additional 26,495 shares during the last quarter. Finally, Vident Investment Advisory LLC purchased a new stake in Jack in the Box in the third quarter valued at approximately $203,000. Institutional investors own 99.26% of the company’s stock.
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Jack in the Box Company Profile
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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