Jack In the Box operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants in the United States. The company was founded in 1951 and is based in San Diego, California.
JACK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Jack In The Box Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Jack In The Box Inc ranked in the 29th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Jack In The Box Inc ended up being:
The compound growth rate in the free cash flow of Jack In The Box Inc over the past 5.46 years is -0.05%; that's better than only 21.46% of cash flow producing equities in the Consumer Cyclical sector, where it is classified.
44% of the company's capital comes from equity, which is greater than only 23.53% of stocks in our cash flow based forecasting set.
Jack In The Box Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 19.06% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as JACK, try GM, PLOW, DLB, HAS, and SYPR.
SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced today that it is more than three-quarters of the way toward ensuring that all eggs in its supply chain come from chickens raised in cage-free environments. In 2015, Jack in the Box Inc. made two commitments around transitioning to cage-free eggs: first, to switch a majority of its eggs to cage-free by 2020 and secondly, to use 100% cage-free eggs by 2025. Today, more than 77% of the company’s eggs come from cage-free chic
Investment Thesis While social restrictions limited the dine-in services, the off-premise-focused QSR chains minimized their top-line impact thanks to the federal stimulus measures. Targeting value-focused customers, Jack in the Box Inc. (JACK) has reversed the comp decline faster than its multinational peers even through a leadership transition. With sales momentum...
Dulan Lokuwithana on Seeking Alpha | August 31, 2020
Deutsche Bank starts off coverage on Jack in the Box (JACK) with a Buy rating.The firm sees strength in the management team and is sees the fast-food chain as a beneficiary of the coronavirus crisis."Led by a new CEO, and potentially aided by COVID-related industry opportunities, the resumption of consistent...
SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the third quarter ended July 5, 2020. Increase in same-store sales: 12 Weeks Ended 40 Weeks Ended July 5, 2020 July 7, 2019 July 5, 2020 July 7, 2019 Company 4.1% 2.8% 1.2% 1.2% Franchise 6.9% 2.7% 1.5% 0.8% System 6.6% 2.7% 1.5% 0.8% Jack in the Box® system same-store sales increased 6.6 percent for the quarter. Company same-store sales increased 4.1
SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced today that Lance Tucker, Executive Vice President and Chief Financial Officer, has provided his intent to resign and will be leaving the company effective within the next six weeks. The company has initiated a search for a new Chief Financial Officer. While the company searches to identify a successor, the senior members of the company’s finance department will assume Tucker’s responsibilities on an interim basis. Dawn Ho