Jack In The Box stock price target lowered to $19 by Piper Sandler

Published 07/08/2025, 16:46
Jack In The Box stock price target lowered to $19 by Piper Sandler

Investing.com - Piper Sandler has lowered its price target on Jack In The Box (NASDAQ:JACK) to $19.00 from $26.00 while maintaining a Neutral rating on the stock. The stock currently trades at $17.93, near its 52-week low of $16.63, with InvestingPro analysis indicating the stock is undervalued based on its Fair Value model.

The price target reduction follows Jack In The Box’s fiscal third-quarter 2025 results, which showed same-store sales at the core Jack in the Box brand declining 7.1%, while Del Taco same-store sales fell 2.6%. This performance aligns with broader company challenges, as revenue declined 6.66% over the last twelve months, though the company maintains a significant 9.29% dividend yield.

With one quarter remaining in fiscal 2025, the company has lowered the mid-point of its adjusted EBITDA guidance by approximately 5% and its adjusted EPS guidance by approximately 11%. Part of this reduction is attributed to a planned advertising investment that corporate intends to fund in the current quarter. Despite these challenges, InvestingPro data reveals management’s confidence through aggressive share buybacks, with 10+ additional exclusive insights available to subscribers.

Piper Sandler noted that management acknowledged operational challenges during the earnings call, emphasizing the need to "get back to basics" operationally.

The research firm also highlighted management’s comments about addressing the brand’s value proposition, which "has gotten out of line with where the consumer is today."

In other recent news, Jack in the Box reported its third-quarter earnings for 2025, which fell short of analyst expectations. The company announced earnings per share (EPS) of $1.02, missing the forecasted $1.17, resulting in a 12.82% negative surprise. Revenue for the quarter was $332.99 million, which did not meet the anticipated $340.68 million, showing a 2.26% shortfall. Goldman Sachs responded to these results by maintaining its Sell rating on Jack in the Box, with a price target of $18.00. The investment bank highlighted the earnings miss, noting that the EPS was below both their estimate of $1.16 and the consensus expectation of $1.18. These developments have led to increased scrutiny of the company’s financial performance.

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