Stifel maintains Jack In The Box stock rating at Hold amid sales concerns

Published 09/09/2025, 12:42
Stifel maintains Jack In The Box stock rating at Hold amid sales concerns

Investing.com - Stifel has reiterated its Hold rating for Jack In The Box (NASDAQ:JACK) with a price target of $20.00, citing concerns about same-store sales weakness. The stock has declined over 54% in the past year, though it maintains an attractive 8.87% dividend yield.

The research firm identified weaknesses in same-store sales as key risks to its investment thesis, potentially offsetting benefits from the company’s strategic financial initiatives.

Stifel noted that ongoing immigration policy challenges are likely to create sustained sales pressure for the fast-food chain.

Despite these concerns, Stifel expressed optimism about Jack In The Box’s ability to execute broader strategic initiatives, including the divestiture of Del Taco and the closure of underperforming restaurant units.

The firm cautioned that continued softness in sales could pressure margins and EBITDA, potentially slowing progress on the company’s deleveraging efforts.

In other recent news, Jack In The Box reported its third-quarter earnings for 2025, which did not meet analyst expectations. The company posted earnings per share (EPS) of $1.02, missing the forecasted $1.17, and revenue of $332.99 million, which fell short of the expected $340.68 million. This earnings report has led to various analyst actions. Morgan Stanley reiterated its Equalweight rating with a $23.00 price target, expressing limited confidence in a near-term turnaround. Piper Sandler lowered its price target to $19.00 from $26.00 while maintaining a Neutral rating, following a decline in same-store sales for both the Jack in the Box and Del Taco brands. Goldman Sachs maintained its Sell rating and set a price target of $18.00, citing the earnings miss as a reason. These developments reflect ongoing challenges for Jack In The Box as it navigates financial expectations and market conditions.

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