Bullish indicating open at $55-$60, IPO prices at $37
Jack in the Box Inc. (NASDAQ:JACK) stock has tumbled to a 52-week low, reaching a price level of $22.24 USD, as the fast-food chain grapples with a challenging market environment. According to InvestingPro data, the company maintains a notable 6.9% dividend yield and has consistently paid dividends for 12 consecutive years. This latest price point underscores a significant downturn for the company, which has seen its stock value plummet by 61.67% over the past year. Investors and analysts are closely monitoring the company’s performance, with analyst price targets ranging from $24 to $65, suggesting potential upside. The 52-week low serves as a critical benchmark for Jack in the Box, reflecting investor sentiment and the broader industry trends that are currently shaping the fast-food sector. While current challenges persist, InvestingPro analysis indicates the stock is currently undervalued, with 14 additional exclusive insights available to subscribers.
In other recent news, Jack in the Box Inc. has announced several strategic initiatives under its JACK on Track plan, including the discontinuation of its dividend payout and the sale of selected real estate assets to reduce debt and enhance cash flow. The company also plans to close 150-200 underperforming restaurants by the end of 2025, aiming to transition to an asset-light model. In its pre-announced second-quarter results for fiscal year 2025, Jack in the Box reported a same-store sales decline of 4.4%, with adjusted EBITDA between $66 million and $68 million. Analysts have responded to these developments with revised projections. Citi lowered its earnings per share estimates for fiscal years 2025 and 2026, reflecting the impact of additional closures and softer sales, and cut the stock target to $31 while maintaining a Neutral rating. Similarly, Stifel decreased its price target to $35, citing weak comparable sales trends, and maintained a Hold rating. Meanwhile, Jefferies adjusted its price target to $41, noting better-than-expected same-store sales but expressing caution due to leadership changes and a softer start to the second fiscal quarter. Additionally, Jack in the Box shareholders recently approved the election of board members and executive compensation, indicating strong shareholder confidence in the company’s leadership.
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