SAN DIEGO—Ryan Lee Ostrom, Executive Vice President and Chief Marketing & Digital Officer at Jack in the Box Inc. (NASDAQ:JACK), recently sold 707 shares of the company's common stock, according to a recent SEC filing. The transaction, dated December 4, 2024, saw shares sold at an average price of $48.93, amounting to a total of $34,593.
The sale was part of a routine transaction to cover tax obligations associated with the vesting of restricted stock units, as outlined in the company's automatic sell-to-cover policy. Following this sale, Ostrom holds 27,744 shares directly.
Earlier, on December 2, 2024, Ostrom acquired 10,505 shares of common stock through restricted stock units, with no cash exchanged due to the nature of the award. These units are subject to a vesting schedule and a holding requirement until certain stock ownership criteria are met.
In other recent news, Jack in the Box exceeded earnings estimates in its fourth-quarter report for fiscal year 2024, with earnings per share of $1.16, but fell short on revenue at $349.3 million. The company attributed this to weaker same-store sales growth at both Jack in the Box and Del Taco brands. Furthermore, TD Cowen has maintained its Hold rating on Jack in the Box shares, despite lowering its earnings per share projections for the company for 2025 and 2026.
In response to these results, RBC Capital Markets reduced its price target for Jack in the Box from $70.00 to $65.00, while Goldman Sachs (NYSE:GS) reduced its price target to $43.00 from $47.00. Both firms noted potential challenges ahead, including increased wages in California and the impact of McDonald's (NYSE:MCD) recent introduction of its McValue platform.
Despite these challenges, Jack in the Box has made significant strides in digital expansion, new market penetration, and restaurant development, with over 14% of the company's sales being digital and agreements signed for 464 new restaurants. The company projects an operating earnings per share between $5.05 and $5.45 for fiscal 2025. These recent developments reflect a careful assessment of the company's financial prospects in the coming years.
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