On Monday, Stifel, a financial services company, adjusted its outlook on shares of Jack In The Box (NASDAQ:JACK), a fast-food restaurant chain. The firm's analyst revised the 12-month price target down to $52.00 from the previous $55.00. Despite the adjustment, the analyst kept a Hold rating on the stock.
The decision to revise the price target came after a thorough review of Jack In The Box's recent earnings report and its annual 10-K filing. The analyst's updated financial model now accounts for several factors that could impact the company's fiscal performance. These include an anticipated increase in Selling, General, and Administrative (SG&A) expenses, along with pressure on restaurant margins.
Moreover, the updated projections from Stifel suggest there will be fewer refranchising transactions involving Del Taco—a restaurant chain acquired by Jack In The Box—than previously expected in the fiscal year 2025. The analysis also indicates a potential reduction in share repurchases by the company.
As a result of these factors, the analyst has revised the earnings per share (EPS) estimate for Jack In The Box for the fiscal year 2025 to $5.36. This figure is slightly below the consensus estimate on the Street, which stands at $5.37.
The new stock price target of $52 reflects these updated expectations and represents a more conservative outlook on the company's financial prospects in the coming year.
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