Jack in the Box Inc. (JACK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Jack in the Box Inc. (JACK) Consumer Business Overview

Jack in the Box Inc. is a quick-service restaurant chain operating primarily through franchising in the United States. With a history dating back to 1951, the company offers a diverse menu and operates in a competitive consumer cyclical sector, focusing on convenience and accessibility.

What Is the Investment Thesis for JACK?

Jack in the Box Inc. presents a mixed investment profile. The company's extensive franchise network provides a stable revenue stream, but its negative profit margin of -5.2% raises concerns about operational efficiency. The company's beta of 1.34 indicates higher volatility compared to the market. A key growth catalyst lies in expanding its geographic footprint and enhancing its menu offerings to attract a broader customer base. However, the absence of a dividend may deter some investors. The company's ability to improve profitability and manage costs will be crucial for long-term value creation. Monitoring same-store sales growth and franchise performance is essential for assessing its future potential.

Based on FMP financials and quantitative analysis

JACK Key Highlights

Operates and franchises approximately 2,200 Jack in the Box restaurants across 21 states and Guam as of November 23, 2021, indicating a significant geographic presence.

• Negative profit margin of -5.2% signals potential challenges in operational efficiency and cost management.
• Gross margin of 27.6% reflects the company's ability to generate revenue from its core operations, though there is room for improvement compared to industry leaders.
• Beta of 1.34 suggests higher volatility compared to the overall market, potentially impacting investor risk profiles.
• No dividend yield, which may affect the attractiveness of the stock for income-seeking investors.

Who Are JACK's Competitors?

JACK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are JACK's Key Strengths?

Established brand recognition in key markets.

• Extensive franchise network.
• Diverse menu offerings.
• Convenient service options (drive-thru, late-night).

What Are JACK's Weaknesses?

Negative profit margin.

• Limited geographic presence compared to larger competitors.
• Dependence on franchise operations.
• Higher beta indicating greater volatility.

What Could Drive JACK Stock Higher?

Potential menu innovations and new product launches to attract customers.

• Expansion of digital ordering and delivery services to enhance customer convenience.
• Strategic franchise expansion into underpenetrated markets.
• Efforts to improve operational efficiency and reduce costs.

What Are the Key Risks for JACK?

Negative return on equity (-3.8%) — the business is not currently generating profit on shareholder capital.

• Intense competition from other quick-service restaurants.
• Fluctuations in food and labor costs impacting profitability.
• Changing consumer preferences and dietary trends.
• Economic downturns affecting consumer spending.
• Regulatory changes impacting the restaurant industry.

What Are the Growth Opportunities for JACK?

• Menu Innovation and Expansion: Jack in the Box can drive growth by continuously innovating its menu to cater to evolving consumer tastes and dietary preferences. This includes introducing healthier options, plant-based alternatives, and limited-time offerings to attract new customers and retain existing ones. The market for healthy and sustainable food options is expanding, presenting a significant opportunity for the company to capture a larger share of the market. Timeline: Ongoing, with new menu items introduced quarterly.
• Digitalization and Online Ordering: Enhancing its digital presence through improved online ordering platforms, mobile apps, and loyalty programs can significantly boost sales and customer engagement. The increasing adoption of online ordering and delivery services provides a substantial growth opportunity. Investing in technology to streamline the ordering process and enhance the customer experience is crucial. Timeline: Within the next 1-2 years.
• Franchise Expansion: Expanding its franchise network into new geographic markets and underpenetrated regions can drive revenue growth and brand awareness. Identifying strategic locations and partnering with experienced franchisees is essential for successful expansion. The global franchise market is estimated to be worth over $4 trillion. Timeline: Ongoing, with a focus on strategic expansion over the next 3-5 years.
• Operational Efficiency and Cost Management: Improving operational efficiency and managing costs effectively can enhance profitability and improve the company's financial performance. This includes optimizing supply chain management, streamlining operations, and reducing waste. Implementing technology solutions to automate processes and improve efficiency can drive significant cost savings. Timeline: Ongoing, with continuous improvement initiatives.
• Strategic Partnerships and Collaborations: Forming strategic partnerships with complementary businesses, such as delivery services and technology providers, can enhance its service offerings and expand its reach. Collaborating with other brands can also create unique marketing opportunities and attract new customers. Timeline: Within the next 1-3 years, as opportunities arise.

What Are JACK's Competitive Advantages?

• Brand recognition and established presence in select geographic markets.
• Extensive franchise network providing a stable revenue stream.
• Diverse menu catering to a wide range of customer preferences.
• Convenient service options, including drive-thru and late-night hours.

What Does JACK Do?

Jack in the Box Inc., established in 1951 and headquartered in San Diego, California, operates and franchises Jack in the Box quick-service restaurants. The company has grown from its initial single location to approximately 2,200 restaurants across 21 states and Guam as of November 23, 2021. Jack in the Box focuses on providing a diverse menu, including burgers, fries, tacos, and breakfast items, catering to a wide range of customer preferences. The company's business model relies heavily on franchising, allowing for rapid expansion and brand presence across various geographic locations. Jack in the Box competes with other major players in the quick-service restaurant industry by emphasizing unique menu offerings and convenient service options, including drive-thru and late-night hours. The company continually adapts its menu and service strategies to meet changing consumer tastes and preferences, ensuring its relevance and competitiveness in the fast-paced restaurant market. Jack in the Box aims to maintain a strong brand identity and customer loyalty through consistent quality and innovative marketing initiatives.

What Products and Services Does JACK Offer?

• Operates quick-service restaurants.
• Franchises Jack in the Box restaurants.
• Offers a diverse menu including burgers, fries, tacos, and breakfast items.
• Provides drive-thru and dine-in services.
• Focuses on convenient and accessible dining options.
• Adapts menu and service strategies to meet changing consumer preferences.

How Does JACK Make Money?

• Generates revenue through company-operated restaurants.
• Collects franchise fees and royalties from franchised locations.
• Focuses on providing a diverse menu to attract a wide range of customers.
• Emphasizes convenience through drive-thru and online ordering options.

What Industry Does JACK Operate In?

Jack in the Box Inc. operates within the highly competitive quick-service restaurant (QSR) industry, characterized by evolving consumer preferences and intense competition. The market is driven by factors such as convenience, affordability, and menu innovation. Major trends include the increasing demand for healthier options, digital ordering and delivery services, and sustainable practices. Jack in the Box competes with global giants like McDonald's and Burger King, as well as regional players. The company's success depends on its ability to differentiate its offerings, manage costs effectively, and adapt to changing consumer demands in a dynamic market environment.

Who Are JACK's Key Customers?

• General consumers seeking quick and convenient meal options.
• Families looking for affordable dining choices.
• Late-night diners seeking accessible food options.
• Customers who value variety in menu offerings.

Wall Street analysts project Jack in the Box Inc. revenue of about $1.12B for fiscal 2026, with EPS near $3.38. The estimate reflects 12 contributing analysts.

Quarterly Financial Performance: Jack in the Box Inc.

Revenue for Jack in the Box Inc. came in at $257.7M during Q3 2026, a 1.3% improvement versus the preceding quarter. The company recorded net income of $20.1M, with diluted EPS of $1.03. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Consumer Cyclical. Across the four most recent quarters, JACK averaged $0.43 in diluted EPS.

JACK Valuation & Market Position

With a $327M market cap, Jack in the Box Inc. sits in the small-cap segment of the market. Relative to its peer group, JACK's quantitative score of 52/100 is below the peer average of 69/100.

Return on equity for Jack in the Box Inc. stands at -3.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.8%, showing how much profit it generates from its asset base. JACK trades at a trailing price-to-earnings ratio of 7.19, below the Consumer Cyclical sector average of ~34x. Its free cash flow yield is 7.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.65 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 12.2%, the inverse of the P/E and a quick read on earnings relative to price.

Jack in the Box Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.19 places it in the grey zone, a middle ground that warrants monitoring.

Jack in the Box Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 2.0% below estimates on average.

Company Profile

Jack in the Box Inc. operates in the Restaurants industry within the Consumer Cyclical sector. It is headquartered in San Diego, US. The company is led by CEO Mark King. JACK has traded publicly since 1992.

JACK Financials

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JACK Analyst Consensus

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Latest Jack in the Box Inc. Analysis

Jack in the Box Inc. Consumer Cyclical Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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