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

Second-rate dividend payer and 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

3.0%

JACK

-2.2%

US Hospitality

-0.7%

US Market


1 Year Return

3.0%

JACK

-15.5%

US Hospitality

19.9%

US Market

Return vs Industry: JACK exceeded the US Hospitality industry which returned -15.5% over the past year.

Return vs Market: JACK underperformed the US Market which returned 19.9% over the past year.


Shareholder returns

JACKIndustryMarket
7 Day3.0%-2.2%-0.7%
30 Day8.4%-0.7%5.8%
90 Day14.9%13.1%8.3%
1 Year4.7%3.0%-14.1%-15.5%22.7%19.9%
3 Year-9.3%-13.9%-10.9%-16.5%43.5%33.9%
5 Year24.0%14.0%16.1%4.0%86.9%65.8%

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?

7.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: JACK ($87.41) is trading below our estimate of fair value ($94.75)

Significantly Below Fair Value: JACK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: JACK is poor value based on its PE Ratio (28.2x) compared to the US Hospitality industry average (27.9x).

PE vs Market: JACK is poor value based on its PE Ratio (28.2x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: JACK is poor value based on its PEG Ratio (1.8x)


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?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JACK's forecast earnings growth (16% per year) is above the savings rate (2.2%).

Earnings vs Market: JACK's earnings (16% per year) are forecast to grow slower than the US market (22.1% per year).

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

Revenue vs Market: JACK's revenue (2.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: JACK's revenue (2.5% 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?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JACK has high quality earnings.

Growing Profit Margin: JACK's current net profit margins (7.5%) are lower than last year (9.8%).


Past Earnings Growth Analysis

Earnings Trend: JACK's earnings have declined by 7.7% 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 (-16.9%) over the past year, making it difficult to compare to the Hospitality industry average (-49.7%).


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 (10.3%).

Interest Coverage: JACK's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: JACK's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: JACK's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.8%), 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 (32.4% payout ratio).


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Darin Harris (51 yo)

0.33

Tenure

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


Leadership Team

NamePositionTenureCompensationOwnership
Marcus Tom
Senior VP & COO2.67yrsUS$1.07m0.0046%
$ 91.0k
Darin Harris
CEO & Director0.33yrno datano data
Dawn Hooper
Controller0.083yrno data0.0088%
$ 175.0k
Drew Martin
Senior VP & Chief Information Officer3.92yrsno data0.0059%
$ 116.6k
Rachel Webb
Vice President of Investor Relations & Strategic Analysisno datano datano data
Sarah Super
Senior VP and Chief Legal & Risk Officer0.92yrno data0.0082%
$ 162.7k
Melissa Corrigan
Senior VP & Chief HR Officer1.92yrsno data0.023%
$ 459.3k
Dean Gordon
Senior VP & Chief Supply Chain Officer3.25yrsno data0.033%
$ 646.8k
Adrienne Ingoldt
Senior VP and Chief Brand & Experience Officer0.92yrno data0.0052%
$ 103.1k
Jennifer Kennedy
Senior VP and Chief Product & Innovation Officer0.92yrno data0.0052%
$ 103.1k
Sean Bogue
Treasurerno datano datano data

0.9yrs

Average Tenure

53yo

Average Age

Experienced Management: JACK's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Darin Harris
CEO & Director0.33yrno datano data
James Myers
Independent Director9.83yrsUS$195.85k0.026%
$ 510.8k
David Tehle
Independent Director15.83yrsUS$240.90k0.020%
$ 391.3k
Madeleine Kleiner
Independent Director9.08yrsUS$182.00k0.029%
$ 573.1k
David Goebel
Independent Non Executive Chairman0.33yrUS$198.88k0.029%
$ 582.8k
Michael Murphy
Independent Director18.08yrsUS$254.81kno data
Jean Birch
Independent Director1.42yrsUS$125.63k0.014%
$ 269.4k
John Gainor
Independent Director1.42yrsUS$125.63k0.015%
$ 288.4k
Sharon John
Independent Director6.08yrsUS$170.44k0.011%
$ 212.7k
Man Yeung
Independent Director3.5yrsUS$174.05k0%
$ 0

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: JACK's board of directors are considered experienced (4.8 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$1.982b
  • Shares outstanding: 22.68m
  • Website: https://www.jackinthebox.com

Number of Employees


Location

  • Jack in the Box Inc.
  • 9330 Balboa Avenue
  • 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 29, 2019, it operated and franchised approximately 2,243 Jack in the Box restaurants in 21 states and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 06:27
End of Day Share Price2020/10/16 00:00
Earnings2020/07/05
Annual Earnings2019/09/29


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.