Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Wednesday, Jefferies analyst Andy Barish adjusted the price target for Jack In The Box (NASDAQ:JACK) stock, reducing it to $41 from the previous $43, while continuing to recommend a Hold rating on the shares. Currently trading at $38.77, the stock sits near its 52-week low of $32.69, having fallen over 50% in the past year. According to InvestingPro data, analyst targets range from $38 to $65, with multiple analysts recently revising earnings expectations downward. Barish noted that Jack In The Box’s same-store sales (SSS) performed better than anticipated, and a combination of one-time factors contributed to margins that led to an EBITDA and EPS that exceeded expectations. The company maintains a significant 5.18% dividend yield and has consistently paid dividends for 11 consecutive years, as revealed by InvestingPro analysis, which offers 14 additional exclusive insights about the company’s performance.
Despite the positive performance, the analyst expressed caution due to a softer beginning to the second fiscal quarter, a sentiment echoed by others in the industry. Additionally, the upcoming departure of CEO Darin Harris, effective March 14, adds a layer of uncertainty to the company’s outlook. However, Barish acknowledged that Jack In The Box benefits from having experienced interim leadership to guide the brand during this transition period. InvestingPro’s Financial Health Score indicates a weak overall rating, with particularly concerning metrics in price momentum and cash flow, though the company’s relative value metrics show more promise.
Barish’s commentary highlighted that despite the challenges posed by a difficult external environment, the core Jack In The Box brand appears to be maintaining its position. The analyst’s mention of "holding its own" suggests that the company is managing to withstand the pressures that are impacting the broader industry.
The update from Jefferies comes at a time when the fast-food industry is facing various headwinds, including changing consumer preferences and economic factors. Jack In The Box’s ability to beat earnings expectations amidst these conditions has been noted by the analyst, although the future remains cautiously observed due to leadership changes and industry-wide softness at the start of the quarter.
In other recent news, Jack in the Box reported its first-quarter earnings for fiscal year 2024, revealing an earnings per share (EPS) of $1.92, which surpassed analyst expectations of $1.73. The company achieved revenue of $469.4 million, slightly below the anticipated $471.76 million. Despite these mixed results, Jack in the Box maintained its annual guidance for same-store sales and operating EPS. The company also announced a new beverage partner contract, which contributed to higher-than-expected restaurant-level margins. In terms of leadership, CEO Darrin Harris resigned, introducing some uncertainty about the company’s future direction. Analysts from RBC Capital, Truist Securities, and Citi have adjusted their price targets for Jack in the Box, with RBC Capital setting a new target of $45, Truist at $51, and Citi at $41, reflecting varying degrees of confidence in the company’s prospects. KeyBanc Capital Markets maintained a Sector Weight rating, noting potential long-term benefits from a reassessment of the brand under new leadership. These developments come amid a challenging macroeconomic environment that is impacting the restaurant sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.