JACK Stock Today, December 26: 70+ Closures, Del Taco Sale Drive Reset
Jack in the Box closures are accelerating into year-end as the company shutters more than 70 restaurants and completes the Del Taco sale for about $119 million. Today, shares of JACK trade near $19, and investors want to know if this reset steadies cash flow. We break down what the footprint changes and divestiture mean for leverage, margins, and 2026 catalysts, plus where the stock sits versus key technical levels and Street targets.
Closures and Del Taco sale: what it means now
The company closed more than 70 units and signaled more could come by December 31, a move aimed at exiting weak locations and lowering costs. Management also completed the Del Taco divestiture for about $119 million, with proceeds earmarked for debt reduction and liquidity support source. Together, these steps anchor a reset to stabilize traffic and improve store productivity.
Leverage remains a focus. The current ratio sits at 0.51, debt to assets at 0.65, and net debt to EBITDA is elevated. On the positive side, operating cash flow per share is 8.30 and free cash flow per share is 2.59, implying a double-digit free cash flow yield at recent prices. Sale proceeds should reduce interest burden and create breathing room for 2026.
The backdrop includes a fiscal 2025 net loss and two straight quarters with same-store sales down more than 7%, keeping margins and traffic in view. Reports suggest additional closures may be finalized in the final days of the year, which could weigh near term yet aid unit economics longer term source. Investors should track weekly sales trends into January.
JACK stock today: price, trend, and Street view
JACK trades at $19.11, with a day range of $18.84 to $19.18. Shares sit above the 50-day average of $17.77 but below the 200-day average of $20.84. The 12-month range spans $13.99 to $44.15, highlighting elevated volatility. Market cap is about $389 million, reflecting the market’s caution while the turnaround plays out.
Analysts show a mixed stance: 2 Buy, 3 Hold, 1 Sell, with a consensus Hold and median target of $20. The consensus target is $24.12, with a high of $61 and low of $15. That spread signals uncertainty around the pace of recovery from Jack in the Box closures and the effect of deleveraging.
The next earnings announcement is scheduled for February 25, 2026, subject to change. The company paid $0.44 per share over the last year, a 2.14% trailing yield at the recent price. Dividend durability will depend on cash flow after closures, rent exits, and any refranchising or remodel commitments in the Jack on Track plan.
What to expect from the Jack on Track plan
We expect the plan to concentrate on closing underperforming sites, negotiating lease exits, and simplifying operations. Success looks like steadier traffic, faster drive-thru times, and fewer discount-driven promotions. The Del Taco sale removes distraction and adds cash to reduce debt. Execution quality in the next two quarters will set the tone for fiscal 2026 guidance.
Franchise stability is key. Inventory days at 1.8 and high inventory turns suggest tight supply chains, but operating margin is negative at roughly -1.6% on a trailing basis. We will watch average unit volumes, remodel paybacks, and royalty collections. Fewer weak stores should lift system margins, yet wage and utility costs remain swing factors.
Enterprise value near $1.79 billion versus a market cap near $389 million underscores leverage. Operating cash flow per share is 8.30, and free cash flow per share is 2.59. Using sale proceeds to cut debt can lower interest expense and raise coverage ratios. Liquidity looks tight with a 0.51 current ratio, so disciplined capital spending matters most in 2026.
Trading setup: levels and catalysts to monitor
RSI at 60.35 and ADX at 25.93 point to a developing trend with moderate strength. ATR near 1.00 signals wide daily swings. Bollinger Bands span $18.48 to $20.80, placing price near the middle. Position sizing and stop placement should reflect this bandwidth while the impact of Jack in the Box closures filters through.
The 50-day average at $17.77 is a nearby support reference, while the 200-day average at $20.84 is initial resistance. The Keltner middle channel sits near $19.26. A sustained close above the 200-day could invite momentum flows, while a break below $17.77 risks a retest of $13.99. This is not investment advice.
Positive catalysts include improving traffic, better restaurant-level margins, successful lease exits, and visible deleveraging. Negative drivers include more closures than planned, franchisee distress, or another round of discounting to buy traffic. Clear updates on the Jack on Track plan and early-2026 outlook will shape sentiment into the next earnings call.
Final Thoughts
The company is using Jack in the Box closures and the Del Taco sale to reset its footprint and reduce debt after a tough fiscal 2025. At about $19, JACK trades above its 50-day average but below its 200-day, with analysts split and targets clustered around $20 to $24. We think investors should focus on three items: pace and cost of closures, momentum in same-store sales, and measurable deleveraging. If traffic stabilizes and interest expense falls, free cash flow could improve. If not, margin pressure may linger. For now, active traders can watch the 200-day near $20.84 as a gauge of trend strength while long-term holders track execution on the Jack on Track plan. Always do your own research.
FAQs
Management is exiting underperforming sites to cut losses, reduce lease obligations, and improve unit economics. The goal is to protect cash flow and lift margins after weak same-store sales. Fewer weak stores can raise average profitability and help the turnaround plan focus on healthier markets.
The company completed the Del Taco divestiture for about $119 million. Management has signaled the primary use is debt reduction and liquidity support. Paying down borrowings can lower interest expense and improve coverage ratios, giving more flexibility for operations and selective investment.
Analysts are mixed, with a consensus Hold, median target of $20, and consensus near $24. The setup depends on execution: stabilizing traffic, managing closure costs, and reducing leverage. Investors with higher risk tolerance may wait for proof of margin improvement or a break above the 200-day average.
Watch the final closure count by December 31, early first-quarter same-store sales trends, updates on lease exits, and any details on the Jack on Track plan. Signals of debt reduction and lower interest expense would be positive. Any signs of franchise stress would be a negative.
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.
