SAN DIEGO—Darin Harris, the CEO and Director of Jack in the Box Inc. (NASDAQ:JACK), has recently reported several stock transactions involving the company's common stock. According to the latest SEC filing, Harris sold a total of 14,671 shares on December 23, 2024, at a price of $40.52 per share. This transaction generated approximately $594,468. The sale comes as Jack in the Box shares trade near their 52-week low of $38.12, having declined about 50% over the past year.
The sales were part of automatic sell-to-cover transactions to satisfy tax withholding obligations upon the vesting of performance shares and restricted stock units. Following these transactions, Harris retains direct ownership of 138,803 shares in the company. According to InvestingPro analysis, Jack in the Box currently appears undervalued, with 12 additional exclusive insights available to subscribers.
Earlier, on December 20, 2024, Harris acquired 20,726 shares at no cost, as part of the company's stock incentive plan for achieving pre-established performance goals. This acquisition increased his total holdings before the subsequent sales. Despite current challenges, analysts expect the company to return to profitability this year, according to InvestingPro data.
In other recent news, Jack in the Box reported its fourth-quarter earnings for fiscal year 2024, exceeding estimates with earnings of $1.16 per share, yet revenue fell short at $349.3 million. The company's earnings per share guidance for fiscal year 2025 is projected to be between $5.05 and $5.45. Stifel, TD Cowen, RBC Capital Markets, and Goldman Sachs (NYSE:GS), all financial services firms, have revised their outlooks on Jack in the Box. Stifel reduced its 12-month price target to $52.00, TD Cowen maintained a steady price target of $50.00, RBC Capital Markets reduced its price target from $70.00 to $65.00, and Goldman Sachs lowered its price target to $43.00 from $47.00.
Despite these adjustments, all firms maintained their respective ratings on the stock. The revisions were due to factors such as an anticipated increase in Selling, General, and Administrative (SG&A) expenses, pressure on restaurant margins, the impact of increased wages in California, and a potential reduction in share repurchases by the company. The competitive fast-food landscape, with significant players like McDonald's (NYSE:MCD) vying for market share, also influenced these adjustments.
In addition, Jack in the Box made significant 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. Despite these advancements, the company is also facing cost pressures due to California's new minimum wage law and inflation. These are recent developments concerning the fast-food chain, and investors should follow these developments closely.
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