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Jack in the Box

Nasdaq:JACK
Snowflake Description

Solid track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
JACK
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. The last earnings update was 60 days ago. More info.


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JACK Share Price and Events
7 Day Returns
-3.9%
NasdaqGS:JACK
0.4%
US Hospitality
0.8%
US Market
1 Year Returns
-9%
NasdaqGS:JACK
-4.1%
US Hospitality
4.8%
US Market
JACK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Jack in the Box (JACK) -3.9% -8.6% 0.4% -9% -11.8% 39.7%
US Hospitality 0.4% 2.6% -1.4% -4.1% 45.8% 25.5%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • JACK underperformed the Hospitality industry which returned -4.1% over the past year.
  • JACK underperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
JACK
Industry
5yr Volatility vs Market
Related Companies

JACK Value

 Is Jack in the Box undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Jack in the Box to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Jack in the Box.

NasdaqGS:JACK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:JACK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.923 (1 + (1- 21%) (52.43%))
1.204
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.204 * 5.96%)
9.91%

Discounted Cash Flow Calculation for NasdaqGS:JACK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Jack in the Box is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:JACK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.91%)
2020 116.33 Analyst x4 105.84
2021 110.58 Analyst x2 91.54
2022 168.03 Analyst x4 126.56
2023 184.50 Est @ 9.8% 126.44
2024 198.67 Est @ 7.68% 123.87
2025 210.98 Est @ 6.2% 119.69
2026 221.86 Est @ 5.16% 114.52
2027 231.69 Est @ 4.43% 108.81
2028 240.77 Est @ 3.92% 102.88
2029 249.35 Est @ 3.56% 96.94
Present value of next 10 years cash flows $1,117.08
NasdaqGS:JACK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $249.35 × (1 + 2.73%) ÷ (9.91% – 2.73%)
$3,568.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,568.29 ÷ (1 + 9.91%)10
$1,387.21
NasdaqGS:JACK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,117.08 + $1,387.21
$2,504.29
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,504.29 / 25.81
$97.02
NasdaqGS:JACK Discount to Share Price
Calculation Result
Value per share (USD) From above. $97.02
Current discount Discount to share price of $78.13
= -1 x ($78.13 - $97.02) / $97.02
19.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Jack in the Box is available for.
Intrinsic value
19%
Share price is $78.13 vs Future cash flow value of $97.02
Current Discount Checks
For Jack in the Box to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Jack in the Box's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Jack in the Box's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Jack in the Box's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Jack in the Box's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:JACK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-14) in USD $4.58
NasdaqGS:JACK Share Price ** NasdaqGS (2019-07-15) in USD $78.13
United States of America Hospitality Industry PE Ratio Median Figure of 74 Publicly-Listed Hospitality Companies 21.55x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Jack in the Box.

NasdaqGS:JACK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:JACK Share Price ÷ EPS (both in USD)

= 78.13 ÷ 4.58

17.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jack in the Box is good value based on earnings compared to the US Hospitality industry average.
  • Jack in the Box is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Jack in the Box's expected growth come at a high price?
Raw Data
NasdaqGS:JACK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
5%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 56 Publicly-Listed Hospitality Companies 1.9x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NasdaqGS:JACK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.06x ÷ 5%

3.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jack in the Box is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Jack in the Box's assets?
Raw Data
NasdaqGS:JACK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-14) in USD $-22.95
NasdaqGS:JACK Share Price * NasdaqGS (2019-07-15) in USD $78.13
United States of America Hospitality Industry PB Ratio Median Figure of 112 Publicly-Listed Hospitality Companies 2.24x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGS:JACK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:JACK Share Price ÷ Book Value per Share (both in USD)

= 78.13 ÷ -22.95

-3.4x

* Primary Listing of Jack in the Box.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Jack in the Box has negative assets, we can't compare the value of its assets to the US Hospitality industry average.
X
Value checks
We assess Jack in the Box's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Jack in the Box has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

JACK Future Performance

 How is Jack in the Box expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Jack in the Box expected to grow at an attractive rate?
  • Jack in the Box's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Jack in the Box's earnings growth is positive but not above the United States of America market average.
  • Jack in the Box's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:JACK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:JACK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 5%
NasdaqGS:JACK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts 3%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 7.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:JACK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:JACK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 1,024 186 132 4
2021-09-30 1,003 161 118 8
2020-09-30 967 160 108 15
2019-09-30 946 128 106 16
NasdaqGS:JACK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-14 872 135 123
2019-01-20 866 76 123
2018-09-30 870 109 104
2018-07-08 924 97 117
2018-04-15 982 84 101
2018-01-21 1,039 169 107
2017-10-01 1,097 181 129
2017-07-09 1,264 136 130
2017-04-14 1,386 186 129
2017-01-22 1,482 172 127
2016-10-02 1,162 147 106
2016-07-03 1,555 208 117

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Jack in the Box's earnings are expected to grow by 5% yearly, however this is not considered high growth (20% yearly).
  • Jack in the Box's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:JACK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Jack in the Box Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:JACK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 6.77 6.90 6.64 2.00
2021-09-30 5.69 6.33 5.27 5.00
2020-09-30 4.81 5.40 4.41 11.00
2019-09-30 4.15 4.36 3.98 12.00
NasdaqGS:JACK Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-14 4.58
2019-01-20 4.44
2018-09-30 3.66
2018-07-08 4.04
2018-04-15 3.41
2018-01-21 3.57
2017-10-01 4.20
2017-07-09 4.13
2017-04-14 4.01
2017-01-22 3.86
2016-10-02 3.16
2016-07-03 3.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Jack in the Box will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Jack in the Box's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Jack in the Box has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

JACK Past Performance

  How has Jack in the Box performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Jack in the Box's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Jack in the Box's year on year earnings growth rate has been positive over the past 5 years.
  • Jack in the Box's 1-year earnings growth exceeds its 5-year average (22% vs 3.9%)
  • Jack in the Box's earnings growth has exceeded the US Hospitality industry average in the past year (22% vs -0.5%).
Earnings and Revenue History
Jack in the Box's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Jack in the Box Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:JACK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-14 871.97 122.72 87.47
2019-01-20 866.01 122.57 96.56
2018-09-30 869.69 104.34 106.65
2018-07-08 924.34 117.35 107.63
2018-04-15 982.46 100.50 115.65
2018-01-21 1,038.57 106.91 114.49
2017-10-01 1,097.29 128.57 120.64
2017-07-09 1,263.59 129.79 143.03
2017-04-14 1,386.42 129.28 160.23
2017-01-22 1,481.69 126.92 181.26
2016-10-02 1,162.26 106.47 154.69
2016-07-03 1,554.98 117.49 212.67
2016-04-10 1,545.55 115.07 218.35
2016-01-17 1,542.52 109.40 223.92
2015-09-27 1,540.32 112.60 221.15
2015-07-05 1,530.94 106.27 218.10
2015-04-12 1,519.92 104.03 213.54
2015-01-18 1,502.67 98.93 209.73
2014-09-28 1,484.13 94.84 205.79
2014-07-06 1,477.43 101.52 203.63
2014-04-13 1,479.26 92.69 209.29
2014-01-19 1,485.61 89.51 213.11
2013-09-29 1,489.87 82.61 220.64
2013-07-07 1,500.78 77.71 224.90
2013-04-14 1,504.51 73.02 224.92
2013-01-20 1,505.71 82.26 225.82
2012-09-30 1,509.30 68.10 224.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Jack in the Box has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Jack in the Box used its assets more efficiently than the US Hospitality industry average last year based on Return on Assets.
  • Jack in the Box has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Jack in the Box's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Jack in the Box has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

JACK Health

 How is Jack in the Box's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Jack in the Box's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Jack in the Box's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Jack in the Box's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Jack in the Box's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Jack in the Box has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Jack in the Box Company Filings, last reported 3 months ago.

NasdaqGS:JACK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-14 -592.51 1,057.46 1.59
2019-01-20 -607.30 1,056.16 4.30
2018-09-30 -591.70 1,065.35 2.71
2018-07-08 -490.47 995.96 0.14
2018-04-15 -430.91 943.26 1.15
2018-01-21 -374.56 1,105.21 3.79
2017-10-01 -388.13 1,144.21 4.47
2017-07-09 -439.00 1,184.91 7.56
2017-04-14 -469.42 1,216.42 6.36
2017-01-22 -273.24 1,064.13 6.09
2016-10-02 -217.21 991.31 17.03
2016-07-03 -167.48 896.27 6.65
2016-04-10 -190.62 935.66 8.80
2016-01-17 -60.12 786.01 7.10
2015-09-27 15.95 741.63 17.74
2015-07-05 106.20 670.49 17.71
2015-04-12 162.95 611.25 10.39
2015-01-18 212.19 566.52 8.81
2014-09-28 257.91 509.67 10.58
2014-07-06 313.44 535.24 9.89
2014-04-13 361.15 510.26 9.11
2014-01-19 455.36 420.77 9.93
2013-09-29 472.02 371.47 9.64
2013-07-07 417.23 381.87 9.78
2013-04-14 456.68 392.49 10.20
2013-01-20 425.17 395.92 9.54
2012-09-30 411.95 423.66 8.47
  • Jack in the Box has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Jack in the Box's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
X
Financial health checks
We assess Jack in the Box's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Jack in the Box has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

JACK Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.05%
Current annual income from Jack in the Box dividends. Estimated to be 2.31% next year.
If you bought $2,000 of Jack in the Box shares you are expected to receive $41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Jack in the Box's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).
  • Jack in the Box's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:JACK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 47 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:JACK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30 2.20 1.00
2021-09-30 2.04 3.00
2020-09-30 1.79 5.00
2019-09-30 1.60 5.00
NasdaqGS:JACK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-16 1.600 1.942
2019-05-15 1.600 2.042
2019-02-20 1.600 2.039
2018-11-21 1.600 1.964
2018-11-19 1.600 1.922
2018-08-09 1.600 1.913
2018-08-08 1.600 1.794
2018-05-16 1.600 1.890
2018-02-21 1.600 1.818
2017-11-20 1.600 1.677
2017-05-22 1.600 1.614
2017-02-28 1.600 1.594
2017-02-23 1.600 1.684
2017-02-22 1.600 1.600
2016-11-22 1.600 1.471
2016-11-21 1.600 1.529
2016-08-15 1.200 1.231
2016-08-04 1.200 1.224
2016-08-03 1.200 1.303
2016-05-12 1.200 1.425
2016-05-11 1.200 1.721
2016-02-18 1.200 1.796
2016-02-17 1.200 1.711
2015-11-19 1.200 1.593
2015-11-17 1.200 1.665
2015-08-06 1.200 1.536
2015-08-05 1.200 1.276
2015-05-18 1.200 1.341
2015-05-14 1.200 1.369
2015-05-13 1.200 1.337
2015-02-19 0.800 0.846
2015-02-17 0.800 0.862
2014-08-06 0.800 1.123
2014-05-16 0.800 1.372
2014-05-15 0.800 1.442
2014-05-14 0.800 1.465

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Jack in the Box has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Jack in the Box only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Jack in the Box's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Jack in the Box's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Jack in the Box afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Jack in the Box has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

JACK Management

 What is the CEO of Jack in the Box's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lenny Comma
COMPENSATION $5,043,921
AGE 49
TENURE AS CEO 5.5 years
CEO Bio

Mr. Leonard A. Comma, also known as Lenny, serves as the Interim 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. since January 1, 2014 to October 2018. Mr. Comma served as the President of Jack in the Box Inc. from May 14, 2012 to October 27, 2014 and served as its Chief Operating Officer from November 2010 to January 2014. He served as Executive Vice President at Jack in the Box Inc. from November 2010 to May 14, 2012 and served as its Senior Vice President since February 2010 until November 2010. Mr. Comma is responsible for the operations of all Jack in the Box and franchised Jack in the Box® restaurants, as well as restaurant development. Mr. Comma joined Jack in the Box Inc. in 2001 as Director of convenience-store and fuel operations for its proprietary chain of convenience stores called Quick Stuff® from August 2001 to May 2006. Since May 2006 until February 2007, he served as Regional Vice President of Jack in the Box's Southern California region and since February 2007 until February 2010, as Vice President of operations for division II, overseeing nearly 1,200 company and franchised Jack in the Box restaurants in California, Idaho, Oregon, Hawaii and Washington. Mr. Comma has more than 25 years of retail and franchise experience. Mr. Comma has an MBA from Nova Southeastern University in Fort Lauderdale, Fla and a Bachelor’S Degree in Finance from Drexel University in Philadelphia.

CEO Compensation
  • Lenny's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Lenny's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Jack in the Box management team in years:

2.3
Average Tenure
58
Average Age
  • The tenure for the Jack in the Box management team is about average.
Management Team

Lenny Comma

TITLE
Interim Chairman & CEO
COMPENSATION
$5M
AGE
49
TENURE
5.5 yrs

Lance Tucker

TITLE
Executive VP & CFO
COMPENSATION
$980K
AGE
50
TENURE
1.3 yrs

Phil Rudolph

TITLE
Executive VP
COMPENSATION
$2M
AGE
61
TENURE
11.7 yrs

Mark Blankenship

TITLE
Executive VP and Chief of Staff & Strategy
COMPENSATION
$1M
AGE
58
TENURE
0.7 yrs

Paul Melancon

TITLE
Senior VP of Finance
COMPENSATION
$959K
AGE
63
TENURE
14 yrs

Marcus Tom

TITLE
VP & COO
AGE
62
TENURE
1.4 yrs

Drew Martin

TITLE
VP & Chief Information Officer
AGE
55
TENURE
2.7 yrs

Carol DiRaimo

TITLE
VP, Chief Investor Relations & Corporate Communications Officer
AGE
58
TENURE
11 yrs

Melissa Corrigan

TITLE
VP & Chief Human Resources Officer
TENURE
0.7 yrs

Dean Gordon

TITLE
VP & Chief Supply Chain Officer
AGE
57
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Jack in the Box board of directors in years:

7.8
Average Tenure
61
Average Age
  • The tenure for the Jack in the Box board of directors is about average.
Board of Directors

Lenny Comma

TITLE
Interim Chairman & CEO
COMPENSATION
$5M
AGE
49
TENURE
5.5 yrs

Mike Murphy

TITLE
Independent Director
COMPENSATION
$269K
AGE
61
TENURE
16.8 yrs

David Tehle

TITLE
Independent Director
COMPENSATION
$232K
AGE
62
TENURE
14.6 yrs

Tom Wyatt

TITLE
Independent Director
COMPENSATION
$190K
AGE
63
TENURE
9.2 yrs

Jim Myers

TITLE
Independent Director
COMPENSATION
$185K
AGE
61
TENURE
8.6 yrs

Madeleine Kleiner

TITLE
Independent Director
COMPENSATION
$178K
AGE
67
TENURE
7.8 yrs

David Goebel

TITLE
Lead Independent Director
COMPENSATION
$195K
AGE
68

Sharon John

TITLE
Independent Director
COMPENSATION
$169K
AGE
55
TENURE
4.8 yrs

Vivien Yeung

TITLE
Director
COMPENSATION
$171K
AGE
46
TENURE
2.3 yrs

Jean Birch

TITLE
Independent Director
AGE
59
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • Jack in the Box individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
04. Jun 19 Sell Mark Blankenship Individual 04. Jun 19 04. Jun 19 -2,413 $83.69 $-201,941
04. Jun 19 Sell Vanessa Fox Individual 03. Jun 19 03. Jun 19 -264 $82.45 $-21,766
20. May 19 Sell Blue Harbour Group, L.P. Company 16. May 19 20. May 19 -1,304,996 $82.33 $-107,440,321
14. Jan 19 Sell JANA Partners LLC Company 07. Jan 19 11. Jan 19 -687,090 $82.30 $-55,648,919
04. Jan 19 Sell JANA Partners LLC Company 17. Dec 18 02. Jan 19 -279,486 $83.47 $-22,153,094
01. Dec 18 Sell Carol DiRaimo Individual 30. Nov 18 30. Nov 18 -419 $87.66 $-36,730
09. Nov 18 Buy Blue Harbour Group, L.P. Company 17. Sep 18 09. Nov 18 1,847,547 $83.50 $154,270,175
26. Oct 18 Sell JANA Partners LLC Company 29. Aug 18 25. Sep 18 -62,446 $88.64 $-5,326,311
26. Oct 18 Buy JANA Partners LLC Company 03. Oct 18 25. Oct 18 95,483 $83.96 $7,421,260
15. Aug 18 Sell Paul Melancon Individual 14. Aug 18 14. Aug 18 -1,125 $90.00 $-101,248
X
Management checks
We assess Jack in the Box's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Jack in the Box has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

JACK News

Simply Wall St News

Jack in the Box Inc. (NASDAQ:JACK) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Jack in the Box Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for Jack in the Box Jack in the Box Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Executive VP and Chief of Staff &amp; Strategy, Mark Blankenship, for US$202k worth of shares, at about US$83.69 per share. … Jack in the Box insiders own about US$28m worth of shares.

Simply Wall St -

How Does Jack in the Box Inc. (NASDAQ:JACK) Fare As A Dividend Stock?

(NASDAQ:JACK) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. Investors might not know much about Jack in the Box's dividend prospects, even though it has been paying dividends for the last five years and offers a 1.9% yield. While the yield may not look too great, the relatively long payment history is interesting. The company also bought back stock equivalent to around 11% of market capitalisation this year. Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1. We'll run through some checks below to help with this. Click the interactive chart for our full dividend analysis NasdaqGS:JACK Historical Dividend Yield, June 25th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Jack in the Box paid out 35% of its profit as dividends. This is medium payout level that leaves enough capital in the business to fund opportunities that might arise, while also rewarding shareholders. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Jack in the Box's cash payout ratio in the last year was 42%, which suggests dividends were well covered by cash generated by the business. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Jack in the Box's Balance Sheet Risky? As Jack in the Box has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Is Jack in the Box Inc. (NASDAQ:JACK) A Smart Pick For Income Investors?

(NASDAQ:JACK) a good dividend stock? How would you know? Dividend paying companies with growing earnings can be highly rewarding in the long term. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. Investors might not know much about Jack in the Box's dividend prospects, even though it has been paying dividends for the last five years and offers a 1.9% yield. A 1.9% yield is not inspiring, but the longer payment history has some appeal. The company also bought back stock equivalent to around 11% of market capitalisation this year. Some simple research can reduce the risk of buying Jack in the Box for its dividend - read on to learn more. Explore this interactive chart for our latest analysis on Jack in the Box! NasdaqGS:JACK Historical Dividend Yield, June 25th 2019 Payout ratios Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. Jack in the Box paid out 35% of its profit as dividends, over the trailing twelve month period. This is a middling range that strikes a nice balance between paying dividends to shareholders, and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. Of the free cash flow it generated last year, Jack in the Box paid out 42% as dividends, suggesting the dividend is affordable. It's positive to see that Jack in the Box's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Jack in the Box's Balance Sheet Risky? As Jack in the Box has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … A company paying out less than a quarter of its earnings as dividends, and growing earnings at more than 10% per annum, looks to be right in the cusp of its growth phase. … Conclusion To summarise, shareholders should always check that Jack in the Box's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend.

Simply Wall St -

Is Jack in the Box Inc.'s (NASDAQ:JACK) P/E Ratio Really That Good?

See our latest analysis for Jack in the Box How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Jack in the Box: P/E of 17.89 = $81.95 ÷ $4.58 (Based on the year to April 2019.) Is A High Price-to-Earnings Ratio Good? … Jack in the Box's Balance Sheet Net debt is 50% of Jack in the Box's market cap.

Simply Wall St -

Calculating The Intrinsic Value Of Jack in the Box Inc. (NASDAQ:JACK)

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $109.02 $113.86 $99.91 $169.65 $187.23 $202.35 $215.44 $226.96 $237.31 $246.84 Growth Rate Estimate Source Analyst x3 Analyst x2 Analyst x1 Analyst x2 Est @ 10.36% Est @ 8.07% Est @ 6.47% Est @ 5.35% Est @ 4.56% Est @ 4.01% Present Value ($, Millions) Discounted @ 10.12% $99.01 $93.89 $74.82 $115.37 $115.63 $113.48 $109.72 $104.97 $99.67 $94.14 Present Value of 10-year Cash Flow (PVCF)= $1.02b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$247m × (1 + 2.7%) ÷ (10.1% – 2.7%) = US$3.4b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$3.4b ÷ ( 1 + 10.1%)10 = $1.31b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $2.33b.

Simply Wall St -

Jack in the Box Inc. (NASDAQ:JACK) Earns A Nice Return On Capital Employed

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Does Jack in the Box's (NASDAQ:JACK) Share Price Gain of 41% Match Its Business Performance?

(NASDAQ:JACK) has fallen short of that second goal, with a share price rise of 41% over five years, which is below the market return. … During five years of share price growth, Jack in the Box achieved compound earnings per share (EPS) growth of 16% per year. … This EPS growth is higher than the 7.1% average annual increase in the share price.

Simply Wall St -

How Does Jack in the Box Inc. (NASDAQ:JACK) Fare As A Dividend Stock?

A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. … Does Jack in the Box tick all the boxes of a great dividend stock? … 5 checks you should use to assess a dividend stock

Simply Wall St -

How Much is Jack in the Box Inc.'s (NASDAQ:JACK) CEO Getting Paid?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Lenny Comma's Compensation Compare With Similar Sized Companies. … has a market cap of US$2.0b, and is paying total annual CEO compensation of US$5.0m.

Simply Wall St -

Jack in the Box Inc. (NASDAQ:JACK): Immense Growth Potential?

Help shape the future of investing tools and receive a $20 prize! … After Jack in the Box Inc.'s (NASDAQ:JACK) earnings announcement in September 2018, … with earnings expected to grow by 1.3% in the upcoming year

Simply Wall St -

JACK Company Info

Description

Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of March 19, 2019, it operated and franchised approximately 2,200 Jack in the Box restaurants in 21 states and Guam. The company was founded in 1951 and is headquartered in San Diego, California.

Details
Name: Jack in the Box Inc.
JACK
Exchange: NasdaqGS
Founded: 1951
$2,016,797,894
25,813,361
Website: http://www.jackinthebox.com
Address: Jack in the Box Inc.
9330 Balboa Avenue,
San Diego,
California, 92123,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS JACK Common Stock Nasdaq Global Select US USD 05. Mar 1992
DB JBX Common Stock Deutsche Boerse AG DE EUR 05. Mar 1992
Number of employees
Current staff
Staff numbers
5,200
Jack in the Box employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 23:41
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/15
Last earnings filing: 2019/05/16
Last earnings reported: 2019/04/14
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.