Jack In The Box (JACK) AI Stock Analysis

• Market Cap: $383.04M
• Dividend Yield: 8.35%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -6.75%
• EPS Growth: -118.94%
• Country: US
• Employees: 1,606
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.30
• Shares Outstanding: 18,896,824
• 10 Day Avg. Volume: 639,004
• 30 Day Avg. Volume: 1,100,725
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 8.95
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 8.01
• Enterprise Value/Ebitda: 55.44
• 1Y Price Target: $18.08
• Price Target Upside: -14.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 3.98
• Revenue Forecast (FY): $1.23B

• Rating: 53 Neutral
• Price Target: $19.00 ▼(-9.87% Downside)

Jack In The Box's overall stock score reflects significant financial challenges, including declining revenue and profitability, and a weak balance sheet. While technical indicators show some positive momentum, and strategic initiatives like the 'Jack on Track' plan and recent corporate events offer potential for improvement, the company's current financial health remains a concern. The high dividend yield provides some appeal, but the negative P/E ratio highlights the risks associated with the stock.

Positive Factors

Strategic Divestiture

The sale of Del Taco allows Jack In The Box to focus on its core brand, simplifying its business model and using proceeds to reduce debt, enhancing financial stability.

Board Restructuring

The addition of experienced directors aims to improve governance and strategic oversight, potentially driving better performance and sustainable growth.

Cash Flow Improvement

Improved cash flow generation provides financial flexibility, enabling the company to invest in growth initiatives and manage debt more effectively.

Negative Factors

Declining Revenue

Continued revenue decline indicates challenges in maintaining market share and customer engagement, potentially impacting long-term growth prospects.

Margin Pressure

Decreasing margins suggest operational inefficiencies and cost pressures, which could hinder profitability and competitiveness over time.

High Leverage

High leverage and negative equity raise solvency risks, limiting the company's ability to invest in growth and adapt to market changes.

Jack In The Box Business Overview & Revenue Model

Company Description

Jack In The Box (JACK) is a fast-food restaurant chain based in the United States, known for its diverse menu that includes hamburgers, tacos, breakfast items, and specialty sandwiches. Founded in 1951, the company operates both company-owned and franchised locations, primarily in the western and southern regions of the U.S. Jack In The Box focuses on providing a quick, convenient dining experience with a variety of meal options catering to different tastes and preferences.

How the Company Makes Money

Jack In The Box generates revenue primarily through the sale of food and beverages at its restaurant locations. The company's revenue model is based on a mix of company-operated restaurants and franchised outlets, with franchise fees and royalties contributing to its earnings. Key revenue streams include sales from its menu items, which range from burgers and fries to salads and breakfast offerings. Additionally, promotional campaigns and limited-time menu items drive traffic to the restaurants, helping to boost sales. Partnerships with delivery services enhance accessibility and convenience for customers, further supporting revenue growth. The company's focus on value meals and combo deals also attracts price-sensitive consumers, contributing to overall profitability.

Jack In The Box Financial Statement Overview

Summary

Jack In The Box is experiencing financial difficulties with declining revenue, negative profitability, and a weak balance sheet characterized by high leverage and negative equity. Despite some positive cash flow generation, the overall financial health is concerning.

Income Statement

The income statement shows a declining trend in revenue with a negative growth rate of -1.55% in the most recent year. Gross profit margin and net profit margin have deteriorated significantly, with the company reporting negative net income. The EBIT and EBITDA margins have also turned negative, indicating operational challenges. Overall, the income statement reflects a struggling financial performance with declining profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, resulting in a negative debt-to-equity ratio. The return on equity is positive but low, indicating limited returns on shareholders' investments. The equity ratio is negative due to the negative equity, highlighting financial instability and potential solvency risks.

Cash Flow

The cash flow statement shows some positive aspects, such as a significant growth in free cash flow by 50.21% in the latest period. However, the operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash despite negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.49B	1.47B	1.57B	1.69B	1.47B	1.14B
Gross Profit	427.90M	419.92M	462.98M	508.14M	433.31M	411.60M
EBITDA	61.84M	36.19M	138.29M	336.80M	304.07M	337.16M
Net Income	-64.57M	-80.72M	-36.70M	130.83M	115.78M	165.75M
Balance Sheet
Total Assets	2.60B	2.59B	2.74B	3.00B	2.92B	1.75B
Cash, Cash Equivalents and Short-Term Investments	38.01M	51.53M	24.75M	157.65M	108.89M	55.35M
Total Debt	3.13B	3.12B	3.18B	3.16B	3.17B	2.23B
Total Liabilities	3.55B	3.53B	3.59B	3.72B	3.66B	2.57B
Stockholders Equity	-951.62M	-938.27M	-851.80M	-718.33M	-736.19M	-817.88M
Cash Flow
Free Cash Flow	49.35M	74.14M	-46.66M	140.05M	116.41M	160.11M
Operating Cash Flow	158.18M	162.36M	68.82M	215.01M	162.88M	201.12M
Investing Cash Flow	-63.27M	-74.69M	-69.37M	42.22M	-578.59M	-20.93M
Financing Cash Flow	-77.55M	-60.03M	-131.19M	-207.36M	478.18M	-343.55M

Jack In The Box Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 21.08 is above the 20-day moving average (MA) of 18.13, above the 50-day MA of 17.66, and below the 200-day MA of 21.49, indicating a neutral trend. The MACD of 0.93 indicates Negative momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 81.41 is Negative, 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	74 Outperform	$345.38M	13.16	9.63%	―	2.09%	12.10%
PBPB	68 Neutral	―	―	19.65%	―	-1.72%	-70.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WEN	59 Neutral	$1.62B	9.00	100.85%	7.78%	-0.21%	0.16%
PZZA	57 Neutral	$1.38B	36.99	―	4.44%	-0.64%	-60.71%
JACK	53 Neutral	$383.04M	―	―	8.35%	-6.75%	-118.94%
VENU	41 Neutral	$382.56M	―	-40.00%	―	―	―

Jack In The Box Corporate Events

Jack In The Box Announces New Board Directors

On November 3, 2025, Jack in the Box Inc. announced a Nomination and Cooperation Agreement with GreenWood Investors, LLC, leading to the appointment of Mark King and Alan Smolinisky as new independent directors on its Board, effective November 7, 2025. This strategic move, part of a broader effort to simplify the company’s business model and enhance stockholder value, includes the formation of a Capital Allocation Committee chaired by Smolinisky. The agreement also entails GreenWood’s commitment to support the Board’s director nominees at the 2026 Annual Meeting and includes provisions on board size, voting, and standstill restrictions, aiming to drive improved performance and sustainable growth.

Jack In The Box Sells Del Taco for $115M

On October 15, 2025, Jack in the Box Inc. announced a definitive agreement to sell its subsidiary, Del Taco Holdings Inc., to Yadav Enterprises Inc. for $115 million in cash. This transaction, expected to close by January 2026, aligns with Jack in the Box’s ‘Jack on Track’ plan to simplify its business model and strengthen its balance sheet by using the proceeds to retire debt. The sale marks a strategic move for Jack in the Box to focus on its core brand, while Del Taco embarks on a new chapter under Yadav Enterprises.

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.