Jack In The Box (JACK) AI Stock Analysis

• Market Cap: $396.01M
• Dividend Yield: 9.34%
• Average Volume (3M): 478.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -6.75%
• EPS Growth: -118.94%
• Country: US
• Employees: 1,606
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): N/A
• Shares Outstanding: 19,103,155
• 10 Day Avg. Volume: 479,086
• 30 Day Avg. Volume: 478,480
• PEG Ratio: -0.04
• Price to Book (P/B): -0.39
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.92
• Enterprise Value/Market Cap: 8.79
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 96.12
• 1Y Price Target: $20.11
• Price Target Upside: -2.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $21.50 ▲(3.71% Upside)

The score is held down primarily by weak financial performance—declining revenue, negative profitability, and a concerning balance sheet with negative equity—despite improved free cash flow. Offsetting factors include mixed/neutral technicals, a very high dividend yield, and moderately constructive guidance and corporate actions focused on simplification and debt reduction.

Positive Factors

Improved Free Cash Flow

A >50% increase in free cash flow shows the company can generate cash despite negative net income. Durable FCF improvement enhances liquidity to fund debt paydown, restaurant reimaging and franchise investment, supporting balance sheet repair and operational flexibility over months.

Del Taco Divestiture Completed

The Del Taco sale materially simplifies the corporate footprint and accelerates a shift to a more asset-light, franchise-focused model. Proceeds earmarked for debt reduction support deleveraging plans and allow management to concentrate resources on core Jack in the Box operations long-term.

Governance & Capital Allocation Changes

Enhanced board oversight and a formal capital allocation committee are structural governance upgrades. They can institutionalize disciplined debt reduction, targeted reinvestment and franchise growth decisions, improving capital efficiency and strategic focus sustainably over the next several quarters.

Negative Factors

Negative Stockholders' Equity

Negative equity signals structural solvency and leverage risk that constrains financial flexibility. It increases refinancing and covenant exposure, limits ability to pursue capex or acquisitions, and raises the probability management must prioritize liability reduction over growth initiatives in the medium term.

Declining Revenue and Losses

Persistent revenue decline and negative net income reflect weakened demand and insufficient margin recovery. Continued top-line erosion reduces operating leverage and scale, making margin restoration and sustainable profit generation more difficult without structural changes to pricing, cost or mix.

Same-Store Sales & Margin Pressure

Sharp same-store sales declines and a 240bp margin contraction indicate durable operational stress from sales deleverage, commodity inflation and labor costs. New market openings also pressured margins, suggesting unit economics may remain challenged while sales recover, weighing on franchise and company profitability.

Jack In The Box Business Overview & Revenue Model

Company Description

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of November 23, 2021, it operated and franchised approximately 2,200 Jack in the Box quick-service restaurants in 21 states and Guam. The company was founded in 1951 and is headquartered in San Diego, California.

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

Financial fundamentals are weak: revenue is declining (-1.55%) and profitability has deteriorated to negative net income with negative EBIT/EBITDA margins. The balance sheet is a major concern due to negative stockholders’ equity (solvency/leverage risk), partially offset by improved free cash flow growth (+50.21%).

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

Jack In The Box Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JACK, the sentiment is Neutral. The current price of 20.73 is below the 20-day moving average (MA) of 21.31, above the 50-day MA of 20.67, and above the 200-day MA of 19.84, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	68 Neutral	$314.83M	11.92	9.63%	―	2.09%	12.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PZZA	57 Neutral	$1.04B	28.04	―	4.72%	-0.64%	-60.71%
WEN	57 Neutral	$1.42B	8.80	87.63%	8.15%	-0.21%	0.16%
JACK	49 Neutral	$396.01M	-4.86	―	9.34%	-6.75%	-118.94%
VENU	44 Neutral	$231.27M	-4.92	-40.00%	―	―	―

Jack In The Box Corporate Events

Jack in the Box Finalizes Sale of Del Taco Unit

On December 22, 2025, Jack in the Box Inc. completed the previously announced sale of its Del Taco Holdings Inc. subsidiary, which owns and operates the Del Taco restaurant brand, to Yadav Enterprises’ assignee Del Taco Group, LLC for approximately $119 million in cash consideration, subject to post-closing adjustments. The company received about $109 million in cash at closing and a 21-day, $10 million promissory note accruing 8% annual interest, guaranteed by Yadav founder and CEO Anil Yadav, marking a significant step in Jack in the Box’s “Jack on Track” plan to simplify its business model, reduce debt, and accelerate its shift toward a more asset-light, franchise-focused structure, with implications for a leaner balance sheet and a more concentrated focus on its core Jack in the Box brand.

The most recent analyst rating on (JACK) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Jack In The Box stock, see the JACK Stock Forecast page.