Cautious on $JACK, as $CMG warns of falling traffic and rising meat and dairy prices. If $YUM is taking share, Qdoba might also take a hit.
$MCD reports tomorrow, as well, so sitting on hands.
Sure, $JACK is more a franchise model, and so somewhat protected from inflation. But still has a significant number of company shops, and this outlook may damage growth projections there, as well as pricing for new and converted franchises. Happy we sold the last of our small position in $JACK today near the close, which we had been building in the last week as a pair trade w/ our long term $CMG short. Would not be surprised to see some weakness in $JACK too now.
Technically, $JACK needs to close tomorrow above $27.40, or it will see a retest of the MA(50)d. If that cracks again, the MA(40)w & MA(200)d will be calling.
As a San Diego guy, I'm a huge fan of JACK...but a lots of bearish divergences on this chart makes of nervous here on the stock..