Timothy Linderman, the Senior Vice President and Chief Development Officer at Jack in the Box Inc. (NASDAQ:JACK), 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 (TSX:TD) Cowen maintained its $50.00 price target, highlighting potential challenges such as competition from McDonald's (NYSE:MCD). RBC (TSX:RY) 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 (NYSE:GS) 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.
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