Jack in the Box's Future Looks Promising: The Stock Is A Buy

Summary

  • Jack in the Box's stock has become dramatically oversold, and we are starting to see signs of a bottom.
  • Fiscal Q2 earnings were below expectations, but the problems are likely to be short term, especially as wage inflation declines.
  • JACK's management continues to show strong execution on their medium and long-term goals.
  • We see upside potential of 75% in 12 to 18 months and +30% annualized returns over the next 3 to 5 years.
  • This idea was discussed in more depth with members of my private investing community, Cash Flow Compounders. Learn More »

paying for fast food from the car at drive-through

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Summary

Jack in the Box's (NASDAQ:JACK or "JITB") stock has been struggling for years as store growth stalled out post the completion of their conversion to a franchise model. By 2018, frustrated JACK franchisees had voted to oust the

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This article was written by

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NJ Value Investor has been writing on Seeking Alpha for 7+ years with quality as their stock picking focus. They rely on quantitative models to determine valuation and find good entry points.

NJ Value Investor is a contributing author to the investing group Cash Flow Compounders which is led by Thomas Lott. They aim to find the best companies in the world that are trading at attractive valuations and are top compounders. Features of Cash Flow Compounders include: their exclusive portfolio of compounders, 2-4 in-depth new ideas a month, live chat, and direct access for questions. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of JACK either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I may add to my position in JACK anytime in the future.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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