Goldman Sachs maintains Sell rating on Jack In The Box stock amid weak Q3

Published 07/08/2025, 11:22
Goldman Sachs maintains Sell rating on Jack In The Box stock amid weak Q3

Investing.com - Goldman Sachs has reiterated its Sell rating and $18.00 price target on Jack In The Box (NASDAQ:JACK) following the company’s third-quarter earnings report that fell short of expectations. The stock, currently trading at $18.94, has fallen over 60% in the past year, according to InvestingPro data.

The fast-food chain reported earnings of $1.02 per share for its fiscal third quarter of 2025, below Goldman Sachs’ estimate of $1.16 and consensus expectations of $1.18, according to the investment bank’s analysis. InvestingPro’s analysis indicates a WEAK overall Financial Health score, with particularly concerning metrics in price momentum and cash flow.

Jack In The Box’s disappointing results stemmed from weaker-than-anticipated top-line performance, with same-store sales declining 7.1% at Jack In The Box locations and 2.6% at Del Taco restaurants, both exceeding projected decreases.

Restaurant profit margin came in at 15.2%, below estimates of 16.2%, as the company faced higher costs across rent, utilities, and labor expenses during the quarter.

While Goldman Sachs acknowledged that the company’s "Jack on Track" improvement plan represents a positive strategic direction, the firm cited continued traffic pressure as evidence that Jack In The Box’s value offerings remain insufficient for consumers in the current economic environment.

In other recent news, Jack in the Box reported its third-quarter earnings for 2025, showing a miss on both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $1.02, falling short of the $1.17 forecast, marking a 12.82% negative surprise. Revenue reached $332.99 million, below the expected $340.68 million, resulting in a 2.26% shortfall. These results have drawn attention from investors and analysts alike, as they reflect significant deviations from expectations.

While the earnings report was the primary focus, there were no additional updates regarding mergers or acquisitions. Analyst firms have yet to issue any upgrades or downgrades following these earnings results. The company has not released any further statements or news items that could provide additional context or information about future plans. Investors are closely monitoring these developments as they assess the company’s financial health and strategic direction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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