Jack In The Box (JACK) AI Stock Analysis

• Market Cap: $376.52M
• Dividend Yield: 8.83%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -6.66%
• EPS Growth: -71.87%
• Country: US
• Employees: 1,606
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 1.02
• Shares Outstanding: 18,882,517
• 10 Day Avg. Volume: 1,474,170
• 30 Day Avg. Volume: 1,554,467
• PEG Ratio: 0.19
• Price to Book (P/B): -1.08
• Price to Sales (P/S): 0.58
• P/FCF Ratio: -19.64
• Enterprise Value/Market Cap: 9.17
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 8.07
• Enterprise Value/Ebitda: 55.83
• 1Y Price Target: $24.50
• Price Target Upside: 22.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 51 Neutral
• Price Target: $20.00 ▲(0.30% Upside)

Jack In The Box faces significant financial challenges, with declining revenue and high leverage posing risks. However, strong cash flow management and a high dividend yield provide some support. Technical indicators suggest a neutral short-term trend, while strategic initiatives highlighted in the earnings call offer potential for long-term improvement. The overall score reflects a cautious outlook, balancing current financial risks with future growth opportunities.

Positive Factors

Cash Flow Management

Strong cash flow management provides a buffer against operational losses, allowing Jack In The Box to sustain operations and invest in strategic initiatives despite financial challenges.

Digital Sales Advancements

Advancements in digital sales and technology implementation enhance operational efficiency and customer experience, positioning the company for future growth in a digital-first market.

Successful Market Expansion

Successful market expansion into new regions demonstrates the company's ability to capture new customer bases and drive revenue growth, supporting long-term strategic goals.

Negative Factors

Declining Revenue

Declining revenue growth indicates challenges in maintaining competitive market position and customer retention, potentially impacting long-term profitability and market share.

High Leverage

High leverage poses significant financial risk, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Decreased Restaurant Margins

Decreased margins reflect operational inefficiencies and cost pressures, which can erode profitability and hinder the company's ability to sustain competitive pricing strategies.

Jack In The Box Business Overview & Revenue Model

Company Description

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of November 23, 2021, it operated and franchised approximately 2,200 Jack in the Box quick-service restaurants in 21 states and Guam. The company was founded in 1951 and is headquartered in San Diego, California.

How the Company Makes Money

Jack In The Box generates revenue primarily through the sale of food and beverages at its restaurants. The company operates under a dual revenue model that includes company-owned restaurants and franchised locations. Revenue from company-owned stores comes directly from customer sales, while franchise revenue is earned through franchise fees, royalties based on sales, and other services provided to franchisees. Additionally, Jack In The Box benefits from strategic partnerships with suppliers for cost-effective procurement of ingredients and promotional collaborations that drive traffic to its locations. Marketing initiatives, seasonal menu items, and loyalty programs also contribute to increased customer engagement and sales, enhancing the company’s overall profitability.

Jack In The Box Financial Statement Overview

Summary

Jack In The Box is facing challenges with declining revenue and profitability, coupled with high leverage and negative equity, which pose significant financial risks. However, the company demonstrates strength in cash flow generation, which provides some buffer against operational losses. Strategic focus on improving revenue growth and reducing debt levels will be crucial for enhancing financial health.

Income Statement

Jack In The Box has experienced a decline in revenue over the TTM period, with a negative revenue growth rate of -2.37%. The company is facing challenges with profitability, as indicated by a negative net profit margin of -6.95% and a declining EBIT margin. However, the EBITDA margin remains positive at 3.81%, suggesting some operational efficiency. The overall income statement reflects a need for improvement in revenue generation and cost management.

Balance Sheet

The balance sheet shows a concerning level of leverage, with a high debt-to-equity ratio of -3.74, indicating significant financial risk. The negative stockholders' equity suggests potential solvency issues. Return on equity is positive at 9.42%, but this is due to the negative equity base. The company needs to address its high debt levels to improve financial stability.

Cash Flow

Cash flow analysis reveals a positive trend, with a significant increase in free cash flow growth of 50.80% over the TTM period. The operating cash flow to net income ratio is 0.21, indicating that the company is generating cash from operations despite net losses. The free cash flow to net income ratio is 0.16, showing some ability to cover net losses with free cash flow. Overall, cash flow management appears to be a relative strength for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.49B	1.57B	1.69B	1.47B	1.14B	1.02B
Gross Profit	427.90M	462.98M	487.85M	433.31M	411.60M	354.47M
EBITDA	61.84M	138.29M	336.80M	304.07M	337.16M	241.90M
Net Income	-64.57M	-36.70M	130.83M	115.78M	165.75M	89.76M
Balance Sheet
Total Assets	2.60B	2.74B	3.00B	2.92B	1.75B	1.91B
Cash, Cash Equivalents and Short-Term Investments	38.01M	24.75M	157.65M	108.89M	55.35M	199.66M
Total Debt	3.13B	3.18B	3.16B	3.17B	2.23B	2.33B
Total Liabilities	3.55B	3.59B	3.72B	3.66B	2.57B	2.70B
Stockholders Equity	-951.62M	-851.80M	-718.33M	-736.19M	-817.88M	-793.36M
Cash Flow
Free Cash Flow	49.35M	-46.66M	140.05M	116.41M	160.11M	124.00M
Operating Cash Flow	158.18M	68.82M	215.01M	162.88M	201.12M	143.53M
Investing Cash Flow	-63.27M	-69.37M	42.22M	-578.59M	-20.93M	29.12M
Financing Cash Flow	-77.55M	-131.19M	-207.36M	478.18M	-343.55M	-87.29M

Jack In The Box Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JACK, the sentiment is Positive. The current price of 19.94 is above the 20-day moving average (MA) of 19.26, above the 50-day MA of 19.26, and below the 200-day MA of 26.76, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 53.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JACK.

Jack In The Box Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOCO	70 Outperform	$282.56M	11.19	9.46%	―	1.85%	-0.99%
PBPB	68 Neutral	$516.85M	47.98	19.65%	―	-1.72%	-70.31%
WEN	63 Neutral	$1.82B	9.97	99.35%	8.17%	1.31%	-1.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PZZA	60 Neutral	$1.55B	20.86	-20.16%	3.89%	-1.46%	8.10%
VENU	52 Neutral	$551.98M	―	-48.66%	―	―	―
JACK	51 Neutral	$376.52M	―	4.15%	8.83%	-6.66%	-71.87%

Jack In The Box Corporate Events

Jack In The Box Amends Stockholder Protection Agreement

On September 8, 2025, Jack in the Box Inc. amended its Stockholder Protection Rights Agreement to redefine ‘Acquiring Person’ to exclude certain passive institutional investors holding less than 20% of the company’s shares. This amendment aims to protect the company’s interests while accommodating passive investors, potentially impacting shareholder dynamics and market perception.

The most recent analyst rating on (JACK) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Jack In The Box stock, see the JACK Stock Forecast page.