Jack In The Box (JACK) PT Lowered to $60 at Stifel

Stifel analyst Chris O\'Cull lowered the price target on Jack In The Box (NASDAQ: JACK) to $60.00 (from $75.00) while maintaining a Hold rating.

The analyst comments "JACK reported negative F2Q comps for both brands, but solid restaurant margin performance and lower G&A helped offset softer sales during the quarter. The company reduced its comp guidance to flat to up LSD for the year and trimmed the upper end of its earnings guidance. That said, QTD trends have improved (Smashed Jack/Popcorn Chicken), with JIB running down 1%. Given the increasingly aggressive promotional environment, the company plans to lean heavily into value, launching the $4 Munchie Meal platform later this month with other products to follow. We continue to believe accelerating comp momentum will depend on the effectiveness of the company's value messaging. While we were encouraged by the progress, it remains difficult to underwrite a meaningful comp acceleration when we expect the competition to be more aggressive with promotional offers."

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