Malcolm Graham
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Why It Makes Sense To Buy The Post-Earnings Dip In Jack In The Box

Oppenheimer’s Brian Bittner says he would Buy any near-term dip in the shares of Jack in the Box Inc. JACK given “conservative” fiscal 2017 EPS outlook, "solid" sales trends and attractive valuation.

Quarter In Review

The restaurant operator’s adjusted fourth-quarter EPS of $1.03 beat Street's $0.88 estimate, with system-wide comps growing 2 percent (vs. Street's +1.9 percent). Qdoba comps rose 1.2 percent versus Street's +1.6 percent estimate.

The company sees 2017 EPS at $4.55–$4.75 (vs. Street's $4.75) and projects full-year comp growth at 2 – 3 percent versus Oppenheimer’s +2.6 percent estimate.

Bittner reiterated his Outperform rating and $115 price target.

Another Voice From The Street

Last month, Goldman Sachs’ Karen Holthouse stated that Taco Bell’s focus on entry level value and growing its breakfast business crates near-term risks for Jack in the Box as she launched coverage of the stock with a Sell rating and price target of $88.

At last check, shares of Jack in the Box rose 4.6 percent to $106.33 after falling to $97.52.

Image Credit: By Famartin (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Latest Ratings for JACK

Nov 2016BarclaysMaintainsEqual-Weight
Oct 2016Goldman SachsInitiates Coverage OnSell
Aug 2016JefferiesMaintainsBuy

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