Tonix Pharmaceuticals stock halted ahead of FDA approval news
On Wednesday, Truist Securities adjusted its outlook on Jack in the Box (NASDAQ:JACK) stock, lowering the price target to $51.00 from the previous $57.00, while still maintaining a Buy rating. The revision by analyst Jake Bartlett came after the company reported its first-quarter financial results for fiscal year 2025, which showed sales and earnings that were largely in line with expectations, alongside the announcement of CEO Darrin Harris’s resignation. With the stock currently trading at $33.95, significantly below its 52-week high of $76.56, InvestingPro analysis suggests the company is undervalued relative to its Fair Value.
Jack in the Box’s same-store sales (SSS) experienced a slowdown since November, influenced by adverse weather conditions, rampant wildfires, and a general pullback in consumer spending. Despite these challenges, Truist Securities expressed confidence in the fast-food chain’s potential for growth, citing industry tailwinds and the brand’s innovative efforts as reasons for continued optimism. The company maintains a notable 5.18% dividend yield and has consistently paid dividends for 11 consecutive years, demonstrating commitment to shareholder returns despite market pressures.
The departure of CEO Darrin Harris has introduced an element of risk according to Bartlett. However, the analyst also noted the potential for positive change, with new leadership possibly steering the company toward improved performance. Bartlett believes in the strength of the Jack in the Box brand and its ability to overcome the recent hurdles. InvestingPro data reveals multiple factors supporting this view, including expectations for net income growth this year, though investors should note the company’s significant debt burden.
In light of the recent events, including the CEO’s resignation and the latest financial data, Truist Securities has recalibrated its estimates, leading to the new price target of $51.00. The firm’s stance reflects a belief that, despite the current uncertainties, Jack in the Box has the fundamentals to succeed in the fast-food industry.
Truist Securities’ report underscores the resilience of Jack in the Box amidst industry-wide pressures and internal changes. The firm’s maintained Buy rating indicates a positive long-term view on the company’s stock, even as it navigates through a period of transition and market challenges.
In other recent news, Jack in the Box reported its first-quarter earnings for fiscal year 2024, showing an earnings per share (EPS) of $1.92, which surpassed the forecast of $1.73. The revenue for the quarter was $469.4 million, slightly below the anticipated $471.76 million. Despite the revenue miss, the company maintained its annual guidance for same-store sales and operating EPS. The recent departure of CEO Darin Harris has introduced uncertainty about the company’s near-term direction, but analysts from KeyBanc see potential benefits from a strategic reassessment under new leadership. Citi analysts revised their price target for Jack in the Box stock to $41.00 from $47.00, maintaining a Neutral rating, citing challenges at Del Taco and a less promising outlook for the second quarter. The company anticipates negative same-store sales for both Jack in the Box and Del Taco in the upcoming quarter due to macroeconomic pressures. Jack in the Box continues to focus on digital investments and menu optimization to drive future growth. Additionally, the company is adjusting its capital allocation strategy, with plans to open 35-45 new restaurants in fiscal year 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.