SAN DIEGO—Richard D. Cook, the Senior Vice President and Chief Technology Officer at Jack in the Box Inc. (NASDAQ:JACK), recently sold 153 shares of the company's common stock. The shares were sold on November 5th at a price of $49.94 each, totaling approximately $7,640. This transaction was carried out to satisfy a tax withholding obligation upon the vesting of restricted stock units, as per the company's automatic sell-to-cover policy stated in the grant agreement.
Following this sale, Cook retains direct ownership of 9,797 shares in Jack in the Box. The sale was disclosed in a filing with the Securities and Exchange Commission, reflecting Cook's ongoing involvement and stake in the company.
In other recent news, Jack in the Box experienced a series of significant developments. The company reported a 2.2% decrease in system same-store sales for the third quarter of 2024, and Loop Capital revised its price target on Jack in the Box shares to $70, down from $87, while maintaining a Buy rating. This adjustment followed the firm's assessment of the company's franchisee-operated stores' recent performance in the United States.
In addition, TD Cowen lowered its price target for Jack in the Box shares to $57 from $59, keeping a Hold rating. This revision was influenced by the company's performance in the third fiscal quarter and a less optimistic forecast for the fourth quarter.
Jack in the Box also underwent a transition in its financial leadership, with the departure of CFO Brian Scott and the appointment of Dawn Hooper as interim CFO. Despite the changes in leadership and the decline in sales, Jack in the Box has announced plans for expansion, including a new franchise agreement to open 12 new locations in the Chicago area.
Furthermore, Del Taco, owned by Jack in the Box, opened a new restaurant in Kissimmee, Florida, collaborating with actor Danny Trejo's Trejo's Tacos. For the full year, Jack in the Box expects an adjusted EBITDA between $320 million and $325 million, with operating EPS of $6.10 to $6.25. These are the recent developments pertaining to Jack in the Box.
InvestingPro Insights
While Richard D. Cook's recent stock sale was relatively small and part of a standard tax withholding procedure, it's worth examining Jack in the Box's current financial position to provide context for investors.
According to InvestingPro data, Jack in the Box has a market capitalization of $984.61 million as of the latest available information. The company's revenue for the last twelve months as of Q3 2024 stood at $1.59 billion, with a revenue growth rate of -7.43% over the same period. This decline in revenue might be a concern for investors, especially when considering the company's financial health.
An InvestingPro Tip highlights that Jack in the Box operates with a significant debt burden. This is particularly noteworthy given another tip indicating that the company's short-term obligations exceed its liquid assets. These factors could potentially impact the company's financial flexibility and ability to navigate challenging market conditions.
On a more positive note, Jack in the Box has maintained dividend payments for 11 consecutive years, as pointed out by another InvestingPro Tip. The current dividend yield is 3.42%, which may be attractive to income-focused investors. Additionally, analysts predict that the company will be profitable this year, which could signal a turnaround from its recent unprofitable period.
It's worth noting that Jack in the Box's stock has shown strong performance over the last month, with a price total return of 14.11%. However, investors should be aware that the stock price movements are quite volatile, as indicated by another InvestingPro Tip.
For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Jack in the Box's financial situation and future prospects.
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