SAN DIEGO—Darin Harris, CEO and Director of Jack in the Box Inc. (NASDAQ:JACK), recently executed a series of stock transactions as reported in a filing with the Securities and Exchange Commission. On December 4, Harris sold a total of 5,408 shares of the company's common stock. The sales were executed at prices ranging from $48.9301 to $48.9313 per share, amounting to a total value of approximately $264,618. The transaction comes as the fast-food chain's stock has declined 38% year-to-date, though InvestingPro analysis suggests the stock is currently undervalued.
These transactions were part of a sell-to-cover arrangement to satisfy tax withholding obligations upon the vesting of restricted stock units, as outlined in the company's policy. Following these sales, Harris holds a total of 132,748 shares directly.
Earlier, on December 2, Harris acquired 47,269 shares of common stock at no cost, as these were restricted stock units that are subject to vesting requirements and a holding period until certain stock ownership guidelines are met.
In other recent news, Jack in the Box reported exceeding earnings estimates for the fourth quarter of fiscal year 2024 with earnings of $1.16 per share, despite revenue falling short at $349.3 million. This shortfall was attributed to weaker same-store sales growth at both Jack in the Box and Del Taco brands. TD Cowen maintained its Hold rating on Jack in the Box shares, while RBC Capital Markets reduced its price target from $70.00 to $65.00, and Goldman Sachs adjusted its price target to $43.00 from $47.00. The firms noted potential challenges for Jack in the Box, including competitive pressure and increased wages in California.
Despite these challenges, the company made significant 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. For fiscal 2025, Jack in the Box projects an operating EPS between $5.05 and $5.45. These are recent developments that reflect a careful assessment of the company's financial prospects in the coming years.
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