JACK - Jack in the Box slides as Stifel moves to the sidelines

Jack in the Box (NASDAQ:JACK) shares fall 2.69% in the pre-market as Stifel downgrades the stock to Hold from Buy citing a lack of catalysts. Those concerns include weak same restaurant sales growth and lower store margins given persistent labor challenges. The decreased profitability could impact the pace of development commitments and delay the ramp in unit growth, writes analyst Chris O'Cull. Thirdly, a lack of upcoming catalysts means that the EBITDA/cash flow projects to remain on the same trajectory. "Unless the company addresses our third concern, we believe shares will trade sideways, fluctuating with changes in investor sentiment around quarterly results," writes O'Cull. Stifel lowers its price target on JACK to $100 from $130 compared to the average price target of $120.

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Jack in the Box slides as Stifel moves to the sidelines