NasdaqGS:JACK

Stock Analysis Report

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Executive Summary

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. More Details


Snowflake Analysis

Proven track record second-rate dividend payer.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: JACK's weekly volatility has decreased from 12% to 5% over the past year.


Market Performance


7 Day Return

-3.7%

JACK

0.6%

US Hospitality

-2.4%

US Market


1 Year Return

53.7%

JACK

39.9%

US Hospitality

31.2%

US Market

Return vs Industry: JACK exceeded the US Hospitality industry which returned 39.9% over the past year.

Return vs Market: JACK exceeded the US Market which returned 31.2% over the past year.


Shareholder returns

JACKIndustryMarket
7 Day-3.7%0.6%-2.4%
30 Day5.6%9.9%-3.0%
90 Day5.7%11.9%3.2%
1 Year55.7%53.7%41.2%39.9%34.1%31.2%
3 Year16.5%10.5%9.2%2.8%48.1%38.6%
5 Year63.8%50.7%70.6%53.6%116.5%92.3%

Long-Term 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

Valuation

Is Jack in the Box undervalued compared to its fair value and its price relative to the market?

16.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JACK ($97.99) is trading above our estimate of fair value ($88.69)

Significantly Below Fair Value: JACK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JACK is good value based on its PE Ratio (17x) compared to the US Hospitality industry average (37.5x).

PE vs Market: JACK is good value based on its PE Ratio (17x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: JACK is poor value based on its PEG Ratio (4.1x)


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?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JACK's forecast earnings growth (4.2% per year) is above the savings rate (2%).

Earnings vs Market: JACK's earnings (4.2% per year) are forecast to grow slower than the US market (19.5% per year).

High Growth Earnings: JACK's earnings are forecast to grow, but not significantly.

Revenue vs Market: JACK's revenue (2% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: JACK's revenue (2% 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?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JACK has high quality earnings.

Growing Profit Margin: JACK's current net profit margins (12.6%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: JACK's earnings have declined by 6.8% per year over the past 5 years.

Accelerating Growth: JACK's earnings growth over the past year (92.6%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: JACK earnings growth over the past year (92.6%) exceeded the Hospitality industry -39.6%.


Return on Equity

High ROE: JACK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


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 (13.3%).

Interest Coverage: JACK's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Jack in the Box current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JACK's dividend (1.63%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: JACK's dividend (1.63%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: JACK has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: JACK's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.8%), 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 (26.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Darin Harris (51 yo)

0.75

Tenure

US$1,369,940

Compensation

Mr. Darin Harris is the Chief Executive Officer and Director of Jack in the Box Inc. since June 15, 2020. Mr. Harris served as the Chief Executive Officer of CICI Enterprises, LP since August 12, 2013 unti...


CEO Compensation Analysis

Compensation vs Market: Darin's total compensation ($USD1.37M) is below average for companies of similar size in the US market ($USD3.64M).

Compensation vs Earnings: Insufficient data to compare Darin's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Darin Harris
CEO & Director0.75yrUS$1.37mno data
Drew Martin
Senior VP & Chief Information Officer4.33yrsUS$850.47k0.0093%
$ 208.7k
Dean Gordon
Senior VP & Chief Supply Chain Officer3.67yrsUS$949.16k0.025%
$ 570.0k
Dawn Hooper
VP & Controller0.83yrUS$2.12m0.0040%
$ 90.1k
Timothy Mullany
Executive VP & CFO0.17yrno datano data
Carol DiRaimo
Interim Vice President of Investor Relationsno datano data0.066%
$ 1.5m
Sarah Super
Senior VP and General Counsel & Risk Officer1.33yrsno data0.013%
$ 281.5k
Ryan Ostrom
Executive VP & Chief Marketing Officer0.083yrno datano data
Melissa Corrigan
Senior VP & Chief HR Officer2.33yrsno data0.027%
$ 603.9k
Adrienne Ingoldt
Senior VP and Chief Brand & Experience Officer1.33yrsno data0.0097%
$ 217.9k
Jennifer Kennedy
Senior VP and Chief Product & Innovation Officer1.33yrsno data0.0051%
$ 115.5k
Sean Bogue
Treasurerno datano datano data

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: JACK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Darin Harris
CEO & Director0.75yrUS$1.37mno data
James Myers
Independent Director10.25yrsUS$193.61k0.025%
$ 572.5k
David Tehle
Independent Director16.25yrsUS$227.68k0.024%
$ 550.2k
Madeleine Kleiner
Independent Director9.5yrsUS$181.86k0.029%
$ 642.4k
David Goebel
Independent Non Executive Chairman0.75yrUS$249.67k0.029%
$ 653.4k
Michael Murphy
Independent Director18.5yrsUS$251.67k0.00042%
$ 9.4k
Jean Birch
Independent Director1.83yrsUS$167.50k0.0080%
$ 178.6k
John Gainor
Independent Director1.83yrsUS$170.00k0.018%
$ 404.2k
Sharon John
Independent Director6.5yrsUS$170.67k0.011%
$ 238.4k
Man Yeung
Independent Director3.92yrsUS$175.10k0%
$ 0

5.2yrs

Average Tenure

62yo

Average Age

Experienced Board: JACK's board of directors are considered experienced (5.2 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$2.247b
  • Shares outstanding: 22.93m
  • Website: https://www.jackintheboxinc.com

Number of Employees


Location

  • Jack in the Box Inc.
  • 9357 Spectrum Center Boulevard
  • San Diego
  • California
  • 92123
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JACKNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1992
JBXDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1992

Biography

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of September 27, 2020, it operated and franchised 2,241 Jack in the Box quick-service restaurants primarily in the...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 00:17
End of Day Share Price2021/03/04 00:00
Earnings2021/01/17
Annual Earnings2020/09/27


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.