Analyst Andrew Charles of TD Cowen maintained a Hold rating on Jack In The Box, reducing the price target to $16.00.
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Andrew Charles has given his Hold rating due to a combination of factors affecting Jack In The Box’s current and future performance. The company is in the early stages of its Jack on Track turnaround plan, which is being implemented in a challenging industry environment. Despite efforts to improve, the fiscal 2025 results were tough, with same-store sales declining more than expected, and the initial guidance for 2026 EBITDA is below expectations.
Looking forward, the company plans to focus on operational improvements and value offerings, but the outlook remains cautious. The same-store sales forecast for 2026 has been adjusted downward to -1.2%, which is at the low end of the company’s guidance. Additionally, the company faces headwinds from commodity and labor inflation, as well as challenges related to franchise margins and closures. These factors contribute to a cautious stance, justifying the Hold rating.
In another report released on November 17, UBS also maintained a Hold rating on the stock with a $17.00 price target.