Jack in the Box shareholders approve board and executive pay

In a recent shareholder meeting, Jack in the Box Inc. (NASDAQ:JACK) announced the election of its board members and the approval of executive compensation, as detailed in an 8-K filing with the SEC. The fast-food company, headquartered in San Diego, California, held its annual meeting on February 28, 2025, where several key decisions were put to a vote. The company, currently trading at $36.14, has maintained dividend payments for 12 consecutive years, demonstrating long-term commitment to shareholder returns despite recent market challenges. According to InvestingPro analysis, the stock appears to be trading below its Fair Value, with a current dividend yield of 4.91%.

The election of directors saw all nominees secure their positions, with significant majority support. The detailed voting results indicated that Guillermo Diaz, Jr., David L. Goebel, Madeleine A. Kleiner, Michael W. Murphy, James M. Myers, Enrique Ramirez, and Vivien M. Yeung all received over 94% approval from votes cast, showcasing strong shareholder confidence in the board. This leadership team faces significant challenges, as InvestingPro data shows the stock has declined over 50% in the past year, though management has been actively buying back shares to demonstrate confidence in the company’s future.

Furthermore, the appointment of KPMG LLP as the company’s independent registered public accountants for the fiscal year ending September 28, 2025, was ratified with over 96% of votes in favor. This reflects the shareholders’ trust in KPMG LLP’s ability to audit the company’s financial statements accurately and impartially.

Another significant outcome of the meeting was the approval of an advisory resolution on executive compensation, with approximately 80.63% of votes cast in favor. While this vote is non-binding, it serves as a strong indicator of shareholder sentiment regarding the company’s executive pay practices.

The results of these votes are particularly relevant for investors and stakeholders, as they provide insights into the governance and financial oversight of the company. The strong support for the board and executive compensation can be seen as an endorsement of Jack in the Box’s leadership and strategic direction. Looking ahead, analysts expect the company to return to profitability this year, with an EPS forecast of $5.45 for FY2025. For deeper insights into JACK’s financial health and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.

This news is based on a press release statement and reflects the company’s current status as reported in the SEC filing. As with all shareholder votes, the results are a snapshot of the collective decisions made by the company’s investors at a specific point in time.

In other recent news, Jack in the Box reported first-quarter earnings for fiscal year 2025 that surpassed expectations, with earnings per share (EPS) of $1.92, outperforming the consensus estimate of $1.69. This positive result was attributed to higher-than-expected restaurant-level margins and a new beverage contract. However, the company anticipates challenges in the second fiscal quarter, with expectations of negative same-store sales (SSS) for both Jack in the Box and Del Taco brands. The departure of CEO Darin Harris adds uncertainty to the company’s future, although interim leadership is in place.

Analysts have responded with mixed adjustments to their price targets. Jefferies reduced its target to $41, maintaining a Hold rating, while RBC Capital lowered its target to $45 but kept an Outperform rating. Truist Securities adjusted its target to $51, sustaining a Buy rating, and KeyBanc maintained a Sector Weight rating. Citi also revised its target to $41, upholding a Neutral rating. Despite these varied assessments, analysts acknowledged the company’s resilience amidst industry-wide pressures and noted potential benefits from strategic reassessments under new leadership.

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