Key Takeaways:
- Jack in the Box (JACK, Financial) may sell its Del Taco brand, acquired in 2022, as part of its "JACK on Track" plan.
- The strategic plan includes closing underperforming restaurants and suspending dividends to improve financial performance.
- Wall Street analysts project an average price target of $40.16 for JACK, suggesting a significant upside potential.
Strategic Shift Under the "JACK on Track" Plan
Jack in the Box (JACK) is contemplating strategic alternatives for its Del Taco brand, potentially selling it for approximately $200 million. This brand was initially acquired for $585 million in 2022. The move is part of the company's broader "JACK on Track" initiative, which aims to enhance financial performance.
Key elements of this plan include the closure of 150-200 underperforming restaurants, divestiture of select real estate assets, and the suspension of dividends to focus on debt reduction. JACK has set a forecasted Adjusted EBITDA of $282-$292 million for 2025, with an anticipated earnings per share (EPS) range of $5.05 to $5.40.
Wall Street Analysts' Price Targets
According to one-year price targets submitted by 19 analysts, the average target price for Jack In The Box Inc (JACK, Financial) stands at $40.16. This includes a high estimate of $65.00 and a low estimate of $24.00. The average target suggests a potential upside of 57.98% from the current price of $25.42. For a more detailed analysis, visit the Jack In The Box Inc (JACK) Forecast page.
The consensus recommendation from 22 brokerage firms places Jack In The Box Inc (JACK, Financial) at an average brokerage recommendation of 2.6, indicating a "Hold" status. The scale used ranges from 1 to 5, where 1 indicates a Strong Buy, and 5 suggests a Sell recommendation.
GuruFocus Valuation Insights
According to GuruFocus estimates, the projected GF Value for Jack In The Box Inc (JACK, Financial) in one year is $84.21. This implies a remarkable upside potential of 231.27% from its current price of $25.42. The GF Value represents GuruFocus's assessment of the fair trading value of the stock. It is derived from historical trading multiples, past business growth, and future business performance estimates. More detailed insights are available on the Jack In The Box Inc (JACK) Summary page.
