JACK Intrinsic Value Calculation – JACK IN THE BOX Announces Q3 Earnings Results for FY2023
August 23, 2023
🌥️Earnings Overview
JACK IN THE BOX ($NASDAQ:JACK) released their financial results for Q3 of FY2023 on August 9 2023. Total revenue for the quarter ending June 30 2023 was USD 396.9 million, showing a slight increase of 0.3% year over year. Net income also rose by 10.0%, with the total amounting to USD 29.2 million.
Market Price
The company’s stock opened at $94.6 and closed at $87.3, representing a 6.8% drop from the previous closing price of 93.7. Investors are now looking to JACK IN THE BOX’s fourth quarter earnings report to see if the company can regain its momentum after a disappointing third quarter. With the holiday season upon us, many are expecting JACK IN THE BOX’s stock to see an upturn, as more people look for convenience over the coming months.
Analysts are also encouraged by the company’s recent expansion into ecommerce, which could provide a much needed boost to their revenues. Only time will tell if JACK IN THE BOX will be able to turn things around in the coming months and years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JACK. More…
| Total Revenues | Net Income | Net Margin |
| 1.72k | 154.79 | 7.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JACK. More…
| Operations | Investing | Financing |
| 241.14 | 51.3 | -203.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for JACK. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.95k | 3.66k | -35.08 |
Key Ratios Snapshot
Some of the financial key ratios for JACK are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.4% | 9.9% | 17.8% |
| FCF Margin | ROE | ROA |
| 10.0% | -27.2% | 6.5% |
Analysis – JACK Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of JACK IN THE BOX’s financials. Our proprietary Valuation Line has calculated the intrinsic value of JACK IN THE BOX shares to be $130.7. However, the stock is currently being traded at $87.3, which is a 33.2% discount from the intrinsic value. This signals that the stock is significantly undervalued, and could represent an attractive investment opportunity for investors. More…
Peers
In the fast food industry, there is always competition between different companies. Two of the biggest competitors in this industry are Jack in the Box Inc. and Amrest Holdings SE. While both companies offer similar products, they have different strategies that they use to try to win over customers. For example, Jack in the Box Inc. focuses on offering a wide variety of food items, while Amrest Holdings SE focuses on providing a more personal dining experience. Ultimately, it is up to the customer to decide which company they prefer.
– Amrest Holdings SE ($LTS:0OGQ)
Amrest Holdings SE is a holding company that operates in the restaurant industry. It has a market cap of 4.01B as of 2022 and a return on equity of 14.44%. The company operates through two segments: restaurants and other. The restaurant segment includes the operation of restaurants, cafes, bars, and other food and beverage outlets. The other segment includes the operation of other businesses, such as the sale of food and beverage products, the provision of catering services, and the operation of hotels.
– Create Restaurants Holdings Inc ($TSE:3387)
Restaurants Holdings Inc is one of the world’s largest restaurant chains, with over 36,000 locations in over 100 countries. The company has a market cap of 191.66B as of 2022 and a ROE of 12.73%. The company operates in the quick service, casual dining, and fine dining segments and offers a variety of cuisines, including American, Chinese, Italian, Japanese, and Mexican.
– Mos Food Service Inc ($TSE:8153)
In 2022, Sysco’s market cap was $96.21 billion and its ROE was 5.34%. Sysco is a foodservice company that provides products and services to restaurants, hotels, healthcare facilities, and other customers worldwide. Sysco’s product offerings include fresh meat and seafood, produce, prepared food, and non-food items such as paper goods and cleaning supplies. The company also offers value-added services such as menu development, culinary training, and food safety consulting.
Summary
JACK IN THE BOX reported their third quarter earnings for FY2023 on August 9 2023, showing total revenue of USD 396.9 million, a slight increase of 0.3% from the previous year. Net income grew by 10.0%, amounting to USD 29.2 million. Despite the increase in revenue and net income, stock prices moved down the same day, suggesting investors may be cautious about the company’s future prospects.
Analysts are likely to deliver mixed reviews on JACK IN THE BOX, with some believing it may carry too much risk for the current market conditions, while others may feel confident in its potential to deliver returns. Ultimately, investors should consider the company’s financial trends as well as its prospects for growth in order to make a sound investing decision.
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