JACK Stock Today, December 27: Dec 31 Closures, Poison Pill Watch

JACK Stock Today, December 27: Dec 31 Closures, Poison Pill Watch

JACK stock today sits at $19.11 as of December 27, with a day range of $18.84 to $19.18 and a market cap near $388.6 million. With JACK stock today in focus, the company aims to close up to 120 underperforming restaurants by December 31 through its Jack on Track closures. Management is also advancing a Del Taco sale to reduce debt. Investors are watching whether pruning boosts margins, how the shareholder rights plan affects activist pressure, and what that means for the 2026 growth path after this reset.

Price, Trend, and Valuation Snapshot

JACK stock today trades near the Bollinger middle band at $19.64, with price at $19.11, upper at $20.80 and lower at $18.48. RSI is 60.35, showing firm but not overbought momentum. ADX at 25.93 signals a strong trend, while MACD histogram is slightly negative at -0.09. ATR at 1.00 flags active volatility. Stochastic %K at 42.47 and MFI at 53.18 indicate neutral-to-positive flow.

At $19.11, price-to-sales is 0.34 and EV/sales is 1.57. EPS is -$4.24 and the P/E is negative, so cash flow matters more. Free cash flow yield is about 12.7%, yet EV/EBITDA near 49.8 and net debt to EBITDA around 39 show leverage risk. The current ratio is 0.51. Dividend is $0.44, a 2.14% yield, but coverage depends on cash flow stability.

Jack on Track Closures by December 31

Reports indicate Jack in the Box will cease operations at up to 120 locations on December 31 under the Jack on Track closures plan. Coverage includes The Sun and The Independent. The aim is to remove low-traffic stores quickly. JACK stock today reflects market bets that a leaner footprint could reset unit economics entering 2026.

Closing weak restaurants can lift average store contribution and reduce maintenance capex. JACK’s gross margin is 29.7%, but operating margin is -1.6%, showing the need for mix improvement. Expect one-time closure charges near term, potentially offset by lower rent and labor costs later. Investors should track how traffic, ticket, and store-level margins trend post-closures into Q1 updates.

Del Taco Sale and Balance Sheet Reset

JACK’s debt load is heavy. Debt-to-assets is 0.65, interest coverage is negative at -0.23, and the current ratio is 0.51. Net debt to EBITDA sits around 39. Proceeds from a Del Taco sale could reduce leverage, lower interest expense, and widen financial flexibility for remodels and marketing. JACK stock today will likely react most to concrete sale terms, use of proceeds, and timing.

Operating cash flow per share is $8.30 and free cash flow per share is $2.59, but both have been volatile. Divestiture would remove Del Taco cash flow while relieving debt service, so the net effect depends on price and taxes. For JACK stock today, investors should focus on pro forma interest savings and whether core Jack in the Box units can sustain a healthier free cash flow run rate.

Poison Pill, Activists, and the 2026 Path

JACK maintains a shareholder rights plan, often called a poison pill, which aims to limit rapid stake building by any single investor. That setup can slow activist campaigns while the turnaround progresses. The key is duration and any stated triggers. Clarity on the plan’s timeline matters because it shapes who can push for board or strategy changes in 2025 and 2026.

Analyst mix stands at 2 Buy, 3 Hold, and 1 Sell, with a consensus Hold and a median target of $20, consensus $24.12, low $15, high $61. The next listed earnings date is February 25, 2026. Catalysts for JACK stock today include final closure counts, any Del Taco sale update, early January traffic reads, and commentary on margin lift from the year-end reset.

Final Thoughts

JACK stock today trades at a low price-to-sales multiple and a modest dividend yield, but leverage and negative operating margin keep risk high. The December 31 Jack on Track closures are designed to cull weak units fast, which can lift average store profitability in 2025. A Del Taco sale could help de-risk the balance sheet by reducing interest expense, though it may also cut cash flow from the sold assets. Near term, watch price versus the Bollinger band markers at $18.48 and $20.80, and any volume spikes around closure headlines. For investors, the setup favors disciplined sizing until we see post-closure margin proof and concrete divestiture terms that strengthen the 2026 growth path. Always align positions with your risk budget and time horizon.

FAQs

Is JACK stock a buy today?

JACK stock today screens as a Hold for most on the Street, with 2 Buy, 3 Hold, and 1 Sell ratings. The median target is $20 and consensus $24.12, versus a $19.11 price. Upside depends on margin gains from closures and debt relief from a Del Taco sale. Risks include leverage, negative operating margin, and execution. Position size conservatively, and watch volume and price around $18.50 to $20.80.

What are the Jack on Track closures and why do they matter?

The company plans to shut up to 120 underperforming restaurants on December 31. Removing weak stores can lift system averages, reduce maintenance capex, and free management attention for better markets. Expect near-term closure costs, followed by potential margin improvement if traffic consolidates into stronger locations. For JACK stock today, investors will focus on the final count, timing of charges, and store-level margin trends in early 2025.

How could a Del Taco sale impact JACK’s balance sheet and cash flow?

Sale proceeds would likely go toward debt reduction, lowering interest expense and improving flexibility for remodeling and marketing. The trade-off is losing Del Taco’s cash flow. Net impact hinges on sale price, taxes, and reinvestment returns at core Jack in the Box. For JACK stock today, the key questions are pro forma leverage, interest savings, and whether core free cash flow trends improve after the reset.

What near-term catalysts should traders watch into year-end and early January?

Watch for final confirmation of year-end closures, any Del Taco sale headlines, and first traffic reads after the pruning. On the chart, note Bollinger levels at $18.48 and $20.80, RSI around 60, and ATR near 1.00. Compare volume to the 1.13 million average. For JACK stock today, sustained closes above the middle band near $19.64 would support a constructive near-term tone.

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

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