Jack In The Box (NASDAQ:JACK) shares fell 3% pre-market today after Deutsche Bank analysts reduced their price target from $56 to $51 while maintaining a Hold rating. The adjustment reflects cautious sentiment ahead of the company’s fiscal fourth-quarter earnings report and fiscal 2025 guidance.
Investors have expressed concerns over potential top- and bottom-line misses, as well as guidance that may fall short of current sell-side expectations, though buy-side estimates are believed to be lower. Same-store sales (SSS) likely showed improvement at the start of fiscal Q1, driven by a stronger burger category in October and possible gains from McDonald’s weakness. However, a rebound at McDonald’s could create headwinds for Jack In The Box’s sales momentum later in the quarter.
Given macroeconomic uncertainties and a competitive market environment, the company is expected to adopt a conservative stance in its fiscal 2025 guidance. Deutsche Bank lowered its estimates for fiscal Q4 and fiscal 2025, now projecting EPS of $5.98, down from $6.41 and below the consensus estimate of $6.35.