Jack In The Box (JACK) has disclosed a new risk, in the Corporate Activity and Growth category.
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The pending sale of Del Taco by Jack In The Box to Yadav Enterprises, Inc. for $115 million is fraught with uncertainties that could negatively impact the company’s business and financial health. The transaction’s completion hinges on several conditions, such as regulatory approvals and third-party consents, which are beyond the company’s control. Failure to close the deal could lead to significant transaction costs, business disruptions, and strained relationships with stakeholders. Even if the sale proceeds, Jack In The Box might not achieve the anticipated strategic or financial benefits, facing transitional challenges and potential accounting or tax implications that could adversely affect its operations.
The average JACK stock price target is $17.75, implying 14.52% upside potential.
To learn more about Jack In The Box’s risk factors, click here.