Jack in the Box stock hits 52-week low at $22.01 amid sharp decline

Published 19/05/2025, 20:56
Jack in the Box stock hits 52-week low at $22.01 amid sharp decline

Jack in the Box Inc. (NASDAQ:JACK) stock has tumbled to a 52-week low, touching down at $22.01. The fast-food chain, known for its diverse menu and late-night drive-thrus, has faced a challenging year, with its stock price plummeting by 53.24% over the past year. Despite the decline, the company maintains a significant 7.41% dividend yield, and management has been actively buying back shares. According to InvestingPro analysis, JACK currently appears undervalued based on its Fair Value assessment. This significant drop reflects investor concerns over the company’s performance and broader market trends affecting the restaurant industry. The 52-week low marks a stark contrast to the company’s previous market positions, signaling a period of heightened scrutiny and potential strategic reassessment for the San Diego-based company. While 14 analysts have recently revised their earnings expectations downward, InvestingPro data reveals that net income is expected to grow this year. Discover more insights with InvestingPro’s comprehensive research report, featuring detailed analysis of JACK and 1,400+ other US stocks.

In other recent news, Jack in the Box 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 of projections, recording $336.7 million against the expected $345.76 million. The company also reported a decline in same-store sales by 4.4% and a decrease in consolidated adjusted EBITDA to $66.5 million from $75.7 million the previous year. UBS analyst Dennis Geiger revised the price target for Jack in the Box shares, lowering it to $27.00 from $44.00, while maintaining a Neutral rating on the stock. Geiger cited ongoing sales challenges and macroeconomic pressures as reasons for the adjustment. The company announced the suspension of its dividend to focus on debt reduction and potential divestiture of Del Taco. Jack in the Box plans to allocate remaining cash towards share repurchases, technological improvements, and store remodeling. The company has reaffirmed its fiscal year 2025 guidance, projecting slight to moderate declines in same-store sales and adjusted EBITDA of $282-292 million.

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