Bear of the Day: Jack in the Box Inc. (JACK)

Jack in the Box Inc. JACK offered disappointing guidance when it reported its fourth quarter and full-year 2024 results on November 20. The fast-food company pointed to a “difficult top-line macro environment” as part of the reason for its lackluster showing.Jack in the Box shares have tumbled 40% in the last year, highlighting a rough decade compared to the market and its industry.Jack in the Box Stock 101Jack in the Box operates and franchises Jack in the Box, one of the biggest hamburger chains in the U.S., with around 2,200 restaurants across 23 states. The company’s portfolio also includes Del Taco, which boasts approximately 597 restaurants across 17 states.The San Diego, California-headquartered company’s sales slumped 7% in fiscal 2024 (period ended on September 29). Same-store sales fell 2.1% in Q4 for Jack in the Box, driven by a decrease in transactions and an unfavorable menu mix. Meanwhile, Del Taco’s same-store sales decreased 3.9% in the fourth quarter.Image Source: Zacks Investment ResearchLooking ahead, Jack in the Box’s overall revenue is projected to drop by 2.5% in FY25 to $1.53 billion. More importantly, its adjusted earnings are projected to decline by 11% to $5.52 a share. Jack in the Box’s FY25 earnings estimate has tumbled 17% since its Q4 release, with its FY26 outlook 21% lower.Jack in the Box’s downward earnings revisions help it earn a Zacks Rank #5 (Strong Sell). Wall Street is also lukewarm on JACK, with 13 of our 21 brokerage recommendations at a “Hold.”Image Source: Zacks Investment ResearchTime to Stay Away from JACK Stock?Jack in the Box stock has fallen 40% in the past 10 years while its Retail sector has climbed 180% and its Restaurants industry has surged 135%. JACK’s 40% decline in the last year looks even worse next to its industry’s 12% jump and the S&P 500’s 32% surge.JACK is trading below its 200-month moving average for only the second time ever (the other was during the initial Covid selloff). Even though Jack in the Box opened 30 restaurant openings in FY 2024, marking “the highest openings since 2012,” it might be best to stay away from the stock until it proves a turnaround is close. Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks