Downgrade Details and New Price Target
On Monday, Truist cut Jack In The Box Inc (NASDAQ: JACK) to Hold from Buy and slashed its price target to $22 (from $51), citing seven consecutive quarters of underperformance in same-store sales. The sharply lower valuation outlook reflects muted growth expectations for the fast-food chain’s core U.S. outlets.
Investors can see how this revised target stacks up against broader sentiment by checking the Price Target Summary API, which aggregates the latest analyst estimates for JACK and its peers.
Operational Headwinds and Turnaround Skepticism
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Same-Store Sales: Truist flagged continued weakness in April–May data, trailing other burger chains.
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“Jack-on-Track” Plan: Announced in April, this operational overhaul—focused on menu tweaks and marketing—was deemed unlikely to unlock “significant shareholder value.”
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Strategic Gaps: Truist believes Jack needs a comprehensive strategic reset, not just financial restructuring or asset sales (e.g., Del Taco divestiture).
Valuation vs. Peers
With shares trading near mid-single-digit multiples, Truist warns Jack’s upside is limited until same-store trends reverse. To benchmark JACK’s current earnings multiple against the broader restaurant sector, use the Ratios (TTM) API. This real-time data shows whether Jack In The Box is valued cheaply or fairly relative to competitors like McDonald’s (NYSE: MCD) and Yum! Brands (NYSE: YUM).
