Jefferies reiterates a Buy rating and price target of $107.00 on Jack In The Box (NASDAQ: JACK) following F2Q. JACK Topped high expectations with EPS reported at $0.69, compared to Jefferies $0.62 estimate.

Jefferies analyst, Alexander Slagle, commented on JACK, saying, "Despite being up 70% vs. last year (S&P +11%), we continue to like JACK as we believe there is an opportunity to see another year of strong EPS growth and further upside in '15. Although we expected strong results at Qdoba, we think that the accelerating SSS at JIB provides investors with significantly more confidence in the EPS upside opportunity, as this biz continues to represent about 80% of enterprise EBITDA. We think JIB SSS momentum can likely continue, as we believe that most of the exciting new food news is yet to come."

Slagle also added, "Op. EPS guide for F15 raised to $2.90-3.00 (from $2.85-2.97); However, this guide includes a $0.06 charge related to the replacement of beverage equipment (not in previous guide) and higher incentive comp vs. previous expectations as operating metrics are stronger than expected. The company sees strong SSS continuing at both brands (JIB raised to 4.5-5.5% from 3.5-4.5% & Qdoba maintained at 7.5-9.5%) driving 150bps of restaurant-level margin expansion (was 60-140bps). The company also increased its quarterly div. 50% & BOD authorized another $100mm share repo."

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Shares of Jack In The Box closed at $91.78 yesterday.