Financial PerformanceJack in the Box reported fiscal 3Q adjusted EBITDA of $78.9 million, beating estimates.
Growth StrategyManagement expressed confidence in its plan to drive faster unit growth based on a broadly healthy appetite for development among franchisees and a strengthening development pipeline.
ValuationJack in the Box's current ~40% discount to franchised QSR peers and 32% discount to its own 5-year pre-COVID median EV/EBITDA multiple of 12.3x is an overly pessimistic assessment of management's ability to deliver on medium- and longer-term SSS growth, margin/EBITDA and unit growth targets.