KeyBanc on Jack In The Box (JACK): 'Slow Start, Leadership Changes'

KeyBanc analyst Eric Gonzalez reiterated a Sector Weight rating on Jack In The Box (NASDAQ: JACK).

The analyst commented: "Slow Start, Leadership Changes; A better-than-anticipated F1Q, headlined by EPS of $1.92 (-2% y/y) coming in ahead of consensus of $1.69. Above-consensus restaurant-level margins at both the Jack in the Box and Del Taco brands were key drivers of the bottomline beat, though much of the benefit from a new beverage contract that drove the margin beats will not be repeated going forward. And while JitB SSS did come in modestly above expectations (+0.4%, vs. cons. ~flat), the Company expects trends for both brands to be negative for F2Q, as macro/industry headwinds in part weigh on QTD. Furthermore, the surprise departure of CEO Darin Harris (announced yesterday) adds to uncertainty in the NT, though we acknowledge potential from reassessment/reset of brand and company strategy could potentially yield LT upside. However, it remains early days under the helm of "new" leadership, and we expect shares could remain range-bound despite seemingly inexpensive valuation (<7x est. FY26 EPS)."

For an analyst ratings summary and ratings history on Jack In The Box click here. For more ratings news on Jack In The Box click here.

Shares of Jack In The Box closed at $33.95 yesterday.

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