Timothy Linderman, the Senior Vice President and Chief Development Officer at Jack in the Box Inc. (NASDAQ:), recently executed a series of stock transactions involving the company’s common stock. On December 20, Linderman acquired 2,910 shares at no cost, as part of a vesting process tied to performance goals over a three-year period. Following this acquisition, his total holdings increased to 16,604 shares. These transactions come as the stock trades near its 52-week low of $38.12, having declined 50% over the past year.
Subsequently, on December 23, Linderman sold a total of 1,148 shares at a price of $40.52 per share, generating proceeds of $46,516. These sales were conducted to cover tax obligations related to the vesting of performance shares and restricted stock units, as per the company’s automatic sell-to-cover policy. After these transactions, Linderman’s holdings stood at 15,456 shares. According to InvestingPro analysis, Jack in the Box currently trades below its Fair Value, with 12+ additional exclusive insights available to subscribers, including detailed metrics on the company’s financial health and growth prospects.
In other recent news, Jack in the Box, a fast-food restaurant chain, has seen some adjustments in analysts’ outlooks following the release of its recent earnings reports. Stifel revised its 12-month price target to $52.00, citing factors such as an anticipated increase in Selling, General, and Administrative expenses and pressure on restaurant margins. TD Cowen maintained its $50.00 price target, highlighting potential challenges such as competition from McDonald’s (NYSE:). RBC Capital Markets reduced its price target from $70.00 to $65.00, despite acknowledging strong performance in new markets and stable franchisee profitability. Goldman Sachs also adjusted its price target, reducing it to $43.00 from $47.00, citing weak sales and margin pressures.
These adjustments follow Jack in the Box’s Q4 earnings report for fiscal year 2024, where earnings exceeded estimates at $1.16 per share, but revenue fell short at $349.3 million. This was attributed to weaker same-store sales growth at both Jack in the Box and Del Taco brands. For fiscal 2025, the company projects an operating EPS between $5.05 and $5.45, reflecting ongoing challenges in same-store sales growth and increased expenses due to new store openings.
Despite these challenges, the company made 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’s forward-looking strategy includes a focus on digital transformation and operational improvements, despite cost pressures from California’s new minimum wage law and inflation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
