JACK - Jack in the Box is cut at Cowen on growth and margin concerns

Cowen lowered its rating on Jack in the Box (JACK) to Market Perform from Outperform. The firm warned that it is concerned about negative same-store revisions from Jack in the Box (JACK) during the second half of 2022 due to proprietary survey data that indicates lagging value perceptions vs. peers. in an environment that is shaping up to be a deteriorating quick service sales backdrop amid rapid inflation The macroeconomic backdrop is seen threatening the JACK growth story. "While we believe franchisees have the desire to grow, we see risk that the challenging industry margin backdrop leads to delayed openings that would cloud the long term narrative," noted analyst Andrew Charles. Charles thinks the challenging QSR industry sales backdrop, Jack's above-industry levels of both pricing & inflation, and potential distraction from the TACO integration could all be a near-term headwind to the long-term development narrative on JACK. See all the

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Jack in the Box is cut at Cowen on growth and margin concerns