Jack in the Box (JACK) Downgraded by Zacks Investment Research to “Sell”
Zacks Investment Research cut shares of Jack in the Box (NASDAQ:JACK) from a hold rating to a sell rating in a research note released on Wednesday.
According to Zacks, “Jack in the Box’s shares underperformed the industry in the past year. The company’s limited international presence is a disadvantage and could hurt its competitive position. Comps at Qdoba brand had suffered due to poor restaurant level execution. A soft industry backdrop continues to hurt sales too. Pre-opening costs, promotional activity and labor expenses have also been weighing on margins. Yet, we believe, Jack in the Box’s premium and value offerings, focus on menu innovation, franchising and delivery should aid in spurring growth. Efforts to reinvigorate Qdoba along with management’s plan of even considering alternatives to the brand bode well too. Still, increased competition in breakfast and lunch day parts remain concerns.”
Other equities analysts have also recently issued research reports about the company. SunTrust Banks reiterated a buy rating and issued a $113.00 price target on shares of Jack in the Box in a report on Wednesday, January 3rd. Oppenheimer reiterated a buy rating and issued a $125.00 price target on shares of Jack in the Box in a report on Monday, November 20th. Robert W. Baird set a $115.00 price target on Jack in the Box and gave the company a buy rating in a report on Monday, November 27th. Goldman Sachs Group upgraded Jack in the Box from a neutral rating to a buy rating in a report on Friday, January 19th. Finally, Wedbush reiterated a buy rating and issued a $115.00 price target on shares of Jack in the Box in a report on Thursday, February 22nd. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and nine have given a buy rating to the company. Jack in the Box currently has an average rating of Hold and a consensus target price of $109.38.
Jack in the Box (NASDAQ:JACK) last posted its quarterly earnings results on Wednesday, February 21st. The restaurant operator reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.17. The business had revenue of $294.50 million for the quarter, compared to analysts’ expectations of $284.37 million. Jack in the Box had a negative return on equity of 28.27% and a net margin of 8.20%. The firm’s quarterly revenue was down 16.6% compared to the same quarter last year. During the same quarter last year, the business earned $1.18 earnings per share. research analysts predict that Jack in the Box will post 3.97 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, March 16th. Shareholders of record on Monday, March 5th will be issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 1.79%. The ex-dividend date is Friday, March 2nd. Jack in the Box’s dividend payout ratio (DPR) is currently 43.24%.
In other Jack in the Box news, VP Vanessa C. Fox sold 500 shares of the firm’s stock in a transaction dated Friday, February 23rd. The stock was sold at an average price of $88.40, for a total transaction of $44,200.00. Following the transaction, the vice president now owns 2,142 shares in the company, valued at $189,352.80. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Vanessa C. Fox sold 610 shares of the firm’s stock in a transaction dated Friday, March 2nd. The stock was sold at an average price of $91.00, for a total value of $55,510.00. Following the transaction, the vice president now owns 2,051 shares in the company, valued at approximately $186,641. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 16,340 shares of company stock worth $1,619,359. Company insiders own 2.60% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the business. Meeder Asset Management Inc. lifted its holdings in shares of Jack in the Box by 597.5% during the 4th quarter. Meeder Asset Management Inc. now owns 1,123 shares of the restaurant operator’s stock valued at $110,000 after purchasing an additional 962 shares in the last quarter. Cerebellum GP LLC bought a new position in shares of Jack in the Box during the 4th quarter valued at about $118,000. Royal Bank of Canada lifted its holdings in shares of Jack in the Box by 9.0% during the 2nd quarter. Royal Bank of Canada now owns 1,274 shares of the restaurant operator’s stock valued at $126,000 after purchasing an additional 105 shares in the last quarter. Vident Investment Advisory LLC bought a new position in shares of Jack in the Box during the 3rd quarter valued at about $203,000. Finally, Diligent Investors LLC bought a new position in shares of Jack in the Box during the 3rd quarter valued at about $206,000. Hedge funds and other institutional investors own 97.97% of the company’s stock.
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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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