Analysts Lower Jack In The Box Price Target Following Q4 Results

Analysts slashed their price targets on Jack In The Box Inc JACK following its Q4 results. San Diego, California-based Jack In The Box operates quick-service restaurants and fast-casual restaurants.

• Morgan Stanley analyst John Glass lowered the price target to $105 from $115 (16% upside) following a top and bottom-line miss in fiscal Q4. Glass kept an Equal Weight rating on the shares.
• Glass said the magnitude of the earnings miss was greater than he had anticipated and his sales estimates for 2022 have moved lower.
• Goldman Sachs maintained Jack In The Box with a Buy and lowered the price target from $134 to $118 (31% upside).
• Baird analyst David Tarantino lowered the price target to $100 from $110 and added that the near-term visibility is clouded by some external headwinds. Tarantino maintained his Neutral rating at this stage.
• Stifel analyst Chris O'Cull downgraded Jack in the Box to Hold from Buy with a price target of $100, down from $130 (11% upside).
• The analyst had "several concerns," including "SRS remaining weak" coupled with labor challenges causing restaurant margin to decline meaningfully over the next few quarters, lower store-level profitability, and a lack of catalysts to fundamentally change the company's EBITDA/cash flow trajectory.
• Cowen analyst Andrew Charles maintained Jack In The Box with an Outperform and lowered the price target from $140 to $130 (44% upside).
• Oppenheimer analyst Brian Bittner lowered the firm's price target to $125 from $130 (39% upside) and kept an Outperform rating on the shares.
• Credit Suisse analyst Lauren Silberman maintained Jack In The Box with an Underperform and lowered the price target from $102 to $99 (10% upside).
• Wedbush analyst Nick Setyan lowered the firm's price target on Jack in the Box to $110 from $117 (22% upside), citing Q4 results that came in below expectations. Setyan maintained an Outperform rating on the shares.
• Truist analyst Jake Bartlett lowered the firm's price target to $130 from $142 (44% upside) and added that Q4 same-store sales and adjusted EBITDA miss were driven by limited hours due to staffing and the margin headwinds were due to commodity and wage inflation, but these factors are "largely transitory."
• Bartlett maintained a Buy rating on the shares. Bartlett added that the improved new store economics for Jack in the Box are intact, and he sees the post-earnings pull-back in the stock as a "strong buying opportunity."
• Price Action: JACK shares are trading lower by 3.38% at $89.86 on the last check Wednesday.