Jack In The Box, Inc. (JACK) delivered some bad news after Wednesday's closing bell, and Wall Street analysts wasted no time adjusting their outlook on the fast-food chain.
The company reported fourth-quarter earnings of just 30 cents per share, falling well short of the 45-cent consensus estimate. That's a miss of about a third, which is never what you want to see. Revenue came in at $326.19 million, which actually beat analyst expectations of $319.65 million, but here's the catch: that figure represents a decline from $349.29 million in the same quarter last year. So yes, they beat the lowered bar, but the year-over-year comparison tells a tougher story.
"While performance in the fourth quarter did not meet our expectations, we remain focused on restoring positive momentum for the Jack in the Box brand," said Lance Tucker, Jack in the Box CEO.
The market wasn't thrilled. Jack In The Box shares dropped 2.6% to $14.00 in pre-market trading following the results.
The earnings disappointment triggered a cascade of price target reductions from analysts across Wall Street. Here's how five major firms adjusted their outlook:
- TD Cowen analyst Andrew M. Charles maintained Jack In The Box with a Hold rating and slashed the price target from $21 to $16.
- Goldman Sachs analyst Christine Cho kept her Sell rating on the stock and lowered the price target from $17 to $15.
- Oppenheimer analyst Brian Bittner remained the most optimistic, maintaining an Outperform rating while cutting the price target from $28 to $24.
- Truist Securities analyst Jake Bartlett maintained a Hold rating and reduced the price target from $19 to $16.
- Stifel analyst Chris O'Cull stuck with a Hold rating and lowered the price target from $20 to $18.
The analyst consensus is clear: expectations are being reset across the board. With the stock trading at $14 in pre-market hours, even the most bullish analyst sees significant upside needed before Jack In The Box returns to previous valuation levels.
