JACK - Jack In The Box: The Recovery Can Halt The Outperformance
Investment Thesis
While social restrictions limited the dine-in services, the off-premise-focused QSR chains minimized their top-line impact thanks to the federal stimulus measures. Targeting value-focused customers, Jack in the Box Inc. (JACK) has reversed the comp decline faster than its multinational peers even through a leadership transition. With sales momentum continuing and no heavy debt repayment due in the near term, the dividend suspension has ended, indicating healthy cash flows.
The forward earnings multiple trading near historical average has likely priced in the short-term prospects. Despite optimism in the consensus forecasts, the company's