Jack in the Box
Market Cap
US$2.0b
Last Updated
2020/02/17 23:42 UTC
Data Sources
Company Financials +
Executive Summary
Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants.
Rewards
Risk Analysis
Snowflake Analysis
Second-rate dividend payer and slightly overvalued.
Similar Companies
Share Price & News
How has Jack in the Box's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: JACK has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.3%
JACK
1.0%
US Hospitality
0.9%
US Market
1 Year Return
10.0%
JACK
7.3%
US Hospitality
20.0%
US Market
Return vs Industry: JACK exceeded the US Hospitality industry which returned 8.1% over the past year.
Return vs Market: JACK underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| JACK | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 1.0% | 0.9% |
| 30 Day | 9.2% | -4.9% | 1.4% |
| 90 Day | 4.0% | 6.6% | 8.8% |
| 1 Year | 12.2%10.0% | 10.0%7.3% | 22.5%20.0% |
| 3 Year | -13.3%-17.8% | 35.2%26.2% | 49.9%40.3% |
| 5 Year | -1.2%-9.0% | 47.6%32.1% | 73.2%54.1% |
Price Volatility Vs. Market
How volatile is Jack in the Box's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is Jack in the Box Inc. (NASDAQ:JACK) A Smart Choice For Dividend Investors?2 weeks ago | Simply Wall St
Imagine Owning Jack in the Box (NASDAQ:JACK) And Wondering If The 23% Share Price Slide Is Justified1 month ago | Simply Wall St
An Intrinsic Calculation For Jack in the Box Inc. (NASDAQ:JACK) Suggests It's 35% UndervaluedValuation
Is Jack in the Box undervalued compared to its fair value and its price relative to the market?
31.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: JACK ($88.31) is trading below our estimate of fair value ($128.58)
Significantly Below Fair Value: JACK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: JACK is poor value based on its PE Ratio (24.9x) compared to the Hospitality industry average (24.2x).
PE vs Market: JACK is poor value based on its PE Ratio (24.9x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: JACK is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: JACK has negative assets, so we can't compare its PB Ratio to the US Hospitality industry average.
Next Steps
Future Growth
How is Jack in the Box forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
7.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: JACK's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).
Earnings vs Market: JACK's earnings (7.2% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: JACK's earnings are forecast to grow, but not significantly.
Revenue vs Market: JACK's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: JACK's revenue (2.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if JACK's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Jack in the Box performed over the past 5 years?
0.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: JACK has a large one-off loss of $32.3M impacting its September 29 2019 financial results.
Growing Profit Margin: JACK's current net profit margins (9.7%) are lower than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: JACK's earnings have grown by 0.4% per year over the past 5 years.
Accelerating Growth: JACK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: JACK had negative earnings growth (-12.2%) over the past year, making it difficult to compare to the Hospitality industry average (-9.8%).
Return on Equity
High ROE: JACK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Jack in the Box's financial position?
Financial Position Analysis
Short Term Liabilities: JACK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: JACK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: JACK has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: JACK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Debt Coverage: JACK's debt is not well covered by operating cash flow (13.2%).
Interest Coverage: JACK's interest payments on its debt are well covered by EBIT (3.5x coverage).
Balance Sheet
Inventory Level: JACK has a high level of physical assets or inventory.
Debt Coverage by Assets: JACK has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is Jack in the Box's current dividend yield, its reliability and sustainability?
1.81%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: JACK's dividend (1.81%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: JACK's dividend (1.81%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, JACK has been paying a dividend for less than 10 years.
Growing Dividend: JACK's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (45%), JACK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: JACK's dividends in 3 years are forecast to be well covered by earnings (37.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.0yrs
Average management tenure
CEO
Lenny Comma (49yo)
6.1yrs
Tenure
US$6,202,069
Compensation
Mr. Leonard A. Comma, also known as Lenny, serves as the Chairman of Jack in the Box Inc., and serves as its Chief Executive Officer since January 1, 2014. He served as Chairman of Jack in the Box Inc. sin ...
CEO Compensation Analysis
Compensation vs Market: Lenny's total compensation ($USD6.20M) is above average for companies of similar size in the US market ($USD3.78M).
Compensation vs Earnings: Lenny's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.1yrs | US$6.20m | 0.20% $4.0m | |
| Executive VP & CFO | 1.9yrs | US$2.78m | 0.015% $302.4k | |
| Senior VP & COO | 2yrs | US$1.07m | 0.0041% $83.2k | |
| Executive VP | 12.3yrs | US$2.06m | 0.20% $4.0m | |
| Senior VP & Chief Information Officer | 3.3yrs | no data | 0.0058% $117.6k | |
| Vice President of Investor Relations & Strategic Analysis | 0yrs | no data | no data | |
| Senior VP & Chief Human Resources Officer | 1.3yrs | no data | 0.023% $464.1k | |
| Senior VP & Chief Supply Chain Officer | 2.6yrs | no data | 0.032% $653.5k | |
| Senior VP | 0.08yrs | no data | 0.0051% $104.2k | |
| Senior VP | 0.08yrs | no data | 0.0051% $104.2k |
2.0yrs
Average Tenure
54yo
Average Age
Experienced Management: JACK's management team is considered experienced (2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.1yrs | US$6.20m | 0.20% $4.0m | |
| Independent Director | 9.2yrs | US$195.85k | 0.025% $516.1k | |
| Independent Director | 15.2yrs | US$240.90k | 0.019% $395.4k | |
| Independent Director | 8.4yrs | US$182.00k | 0.028% $579.1k | |
| Lead Independent Director | 0yrs | US$198.88k | 0.037% $752.8k | |
| Independent Director | 17.4yrs | US$254.81k | no data | |
| Independent Director | 0.8yrs | US$125.63k | no data | |
| Independent Director | 9.8yrs | US$191.83k | 0.026% $533.8k | |
| Independent Director | 5.4yrs | US$170.44k | 0.011% $214.9k | |
| Independent Director | 2.8yrs | US$174.05k | no data |
8.4yrs
Average Tenure
61yo
Average Age
Experienced Board: JACK's board of directors are considered experienced (8.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: JACK insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Jack in the Box Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Jack in the Box Inc.
- Ticker: JACK
- Exchange: NasdaqGS
- Founded: 1951
- Industry: Restaurants
- Sector: Consumer Services
- Market Cap: US$2.039b
- Shares outstanding: 23.09m
- Website: https://www.jackinthebox.com
Number of Employees
Location
- Jack in the Box Inc.
- 9330 Balboa Avenue
- San Diego
- California
- 92123
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| JACK | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Mar 1992 |
| JBX | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Mar 1992 |
Biography
Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of September 29, 2019, it operated and franchised approximately 2,243 Jack in the Box restaurants in 21 states and Guam. The company was founded in 1951 and is based in San Diego, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 23:42 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/29 |
| Annual Earnings | 2019/09/29 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.