Dennis Geiger, an analyst from UBS, maintained the Hold rating on Jack In The Box. The associated price target was lowered to $17.00.
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Dennis Geiger has given his Hold rating due to a combination of factors affecting Jack In The Box’s performance. The company is facing macroeconomic challenges and heightened competition, which are likely to continue putting pressure on sales and margins. The brand’s core consumer base, which includes Hispanic and lower-income consumers, is particularly affected by these pressures, leading to a forecasted decline in same-store sales.
Despite the company’s efforts to improve guest experience and value perceptions through initiatives like “Jack’s Way,” the anticipated sales turnaround remains uncertain. Additionally, the sale of Del Taco and the ongoing need for profitability improvements and debt reduction are critical areas of focus. While the stock’s valuation is not demanding, significant catalysts such as enhanced sales initiatives, better traffic trends, and financial improvements are necessary to close the valuation gap with peers.
In another report released on October 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $15.00 price target.
Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of JACK in relation to earlier this year.