Jack in the Box stock hits 52-week low at $19.3 amid challenges

Published 30/05/2025, 14:32
Jack in the Box stock hits 52-week low at $19.3 amid challenges

Jack in the Box Inc. (NASDAQ:JACK) shares tumbled to $19.35, reflecting a stark downturn in the fast-food chain’s market performance. According to InvestingPro analysis, the stock is currently trading below Fair Value, with technical indicators suggesting oversold conditions. This new low underscores a significant retreat from more favorable valuations over the past year, with the stock experiencing a precipitous decline of over 61%. Despite these challenges, the company maintains a notable 9% dividend yield and has consistently paid dividends for 12 consecutive years. Analysts maintain price targets ranging from $20 to $61, suggesting potential upside despite current market pressures and internal challenges that have eroded shareholder confidence.

In other recent news, Jack in the Box Inc. reported its second-quarter earnings for 2025, surpassing expectations with an earnings per share (EPS) of $1.20, compared to the forecast of $1.07. However, the company’s revenue fell short, reaching $336.7 million against the projected $345.76 million. UBS analyst Dennis Geiger revised the price target for Jack in the Box shares to $27.00 from $44.00, maintaining a Neutral rating, citing ongoing sales challenges despite strategic initiatives. Jack in the Box has reaffirmed its fiscal year 2025 guidance, projecting slight to moderate declines in same-store sales and adjusted EBITDA of $282-292 million. The company is focusing on its "JACK on Track" plan, which includes suspending dividends to prioritize debt reduction and exploring the potential divestiture of Del Taco. Dawn Hooper has been appointed as the new Chief Financial Officer, bringing over 25 years of experience to the role. CEO Lance Tucker highlighted the company’s transition to a "simpler asset-light" model aimed at sustainable growth. These developments reflect Jack in the Box’s strategic focus on improving financial performance amid challenging market conditions.

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