NasdaqGS:JACK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Acceptable 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


Market Performance


7 Day Return

-2.6%

JACK

3.4%

US Hospitality

3.4%

US Market


1 Year Return

5.7%

JACK

1.1%

US Hospitality

5.4%

US Market

Return vs Industry: JACK exceeded the US Hospitality industry which returned 1.1% over the past year.

Return vs Market: JACK matched the US Market which returned 5.4% over the past year.


Shareholder returns

JACKIndustryMarket
7 Day-2.6%3.4%3.4%
30 Day-0.4%-5.3%-1.0%
90 Day12.7%-4.9%-0.4%
1 Year7.7%5.7%3.6%1.1%7.7%5.4%
3 Year-4.9%-9.8%42.8%33.5%46.2%36.8%
5 Year37.3%26.8%40.7%25.0%65.6%47.5%

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?

18.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: JACK ($87.61) is trading below our estimate of fair value ($107.94)

Significantly Undervalued: 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 (26.1x) compared to the Hospitality industry average (22.9x).

PE vs Market: JACK is poor value based on its PE Ratio (26.1x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: JACK is poor value based on its PEG Ratio (3.1x)


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?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JACK's forecast earnings growth (8.5% per year) is above the savings rate (2.7%).

Earnings vs Market: JACK's earnings (8.5% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: JACK's revenue (2.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: JACK's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JACK's earnings have grown by 1.8% 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 (-24.8%) over the past year, making it difficult to compare to the Hospitality industry average (-13.9%).


Return on Equity

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


Return on Assets

ROA vs Industry: JACK has a higher Return on Assets than the Hospitality industry average last year.


Return on Capital Employed

ROCE Improving: JACK has significantly improved its Return on Capital Employed over the past 3 years.


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 (16%).

Interest Coverage: JACK's interest payments on its debt are not well covered by EBIT (2.6x 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?

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.8%industryaverage2.9%forecastin3Years2.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JACK's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: JACK's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.6%), 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 (35.8% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Lenny Comma (49yo)

5.8yrs

Tenure

US$5,043,921

Compensation

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  ...


CEO Compensation Analysis

Compensation vs. Market: Lenny's total compensation ($USD5.04M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Lenny's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: JACK's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

61yo

Average Age

Experienced Board: JACK's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$201,94104 Jun 19
Mark Blankenship
EntityIndividual
Role
Senior Key Executive
Executive VP and Chief of Staff & Strategy
Shares2,413
Max PriceUS$83.69
SellUS$21,76604 Jun 19
Vanessa Fox
EntityIndividual
Shares264
Max PriceUS$82.45
SellUS$107,440,32120 May 19
Blue Harbour Group, L.P.
EntityCompany
Shares1,304,996
Max PriceUS$82.33
SellUS$55,648,91914 Jan 19
JANA Partners LLC
EntityCompany
Shares687,090
Max PriceUS$82.30
SellUS$22,153,09404 Jan 19
JANA Partners LLC
EntityCompany
Shares279,486
Max PriceUS$83.47
SellUS$36,73001 Dec 18
Carol DiRaimo
EntityIndividual
Shares419
Max PriceUS$87.66
BuyUS$154,270,17509 Nov 18
Blue Harbour Group, L.P.
EntityCompany
Shares1,847,547
Max PriceUS$83.50
BuyUS$7,421,26026 Oct 18
JANA Partners LLC
EntityCompany
Shares95,483
Max PriceUS$83.96

Ownership Breakdown


Management Team

  • Paul Melancon (63yo)

    Senior VP of Finance

    • Tenure: 14.3yrs
    • Compensation: US$959.19k
  • Phil Rudolph (61yo)

    Executive VP

    • Tenure: 11.9yrs
    • Compensation: US$1.82m
  • Mark Blankenship (58yo)

    Executive VP and Chief of Staff & Strategy

    • Tenure: 0.9yrs
    • Compensation: US$1.24m
  • Lance Tucker (50yo)

    Executive VP & CFO

    • Tenure: 1.6yrs
    • Compensation: US$980.42k
  • Drew Martin (55yo)

    VP & Chief Information Officer

    • Tenure: 2.9yrs
  • Lenny Comma (49yo)

    Interim Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$5.04m
  • Dean Gordon (57yo)

    VP & Chief Supply Chain Officer

    • Tenure: 2.3yrs
  • Marcus Tom (62yo)

    VP & COO

    • Tenure: 1.7yrs
  • Melissa Corrigan

    VP & Chief Human Resources Officer

    • Tenure: 0.9yrs
  • Rachel Webb

    Director of Investor Relations & Strategic Analysis

    • Tenure: 0yrs

Board Members

  • Jim Myers (61yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$184.63k
  • David Tehle (62yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$232.36k
  • Madeleine Kleiner (67yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$177.69k
  • David Goebel (68yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$195.06k
  • Mike Murphy (61yo)

    Independent Director

    • Tenure: 17.1yrs
    • Compensation: US$268.54k
  • Jean Birch (59yo)

    Independent Director

    • Tenure: 0.4yrs
  • Tom Wyatt (63yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$189.98k
  • Sharon John (55yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$168.65k
  • Lenny Comma (49yo)

    Interim Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$5.04m
  • Vivien Yeung (46yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$171.09k

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$2.262b
  • Shares outstanding: 25.82m
  • 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 March 19, 2019, it operated and franchised approximately 2,200 Jack in the Box restaurants in 21 states and Gua ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:35
End of Day Share Price2019/10/15 00:00
Earnings2019/07/07
Annual Earnings2018/09/30


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.