Advertisement
U.S. markets open in 4 hours 4 minutes
  • S&P Futures

    5,303.50
    -4.75 (-0.09%)
     
  • Dow Futures

    40,138.00
    -6.00 (-0.01%)
     
  • Nasdaq Futures

    18,479.00
    -24.75 (-0.13%)
     
  • Russell 2000 Futures

    2,133.50
    -4.90 (-0.23%)
     
  • Crude Oil

    81.55
    +0.20 (+0.25%)
     
  • Gold

    2,215.00
    +2.30 (+0.10%)
     
  • Silver

    24.54
    -0.21 (-0.86%)
     
  • EUR/USD

    1.0782
    -0.0048 (-0.44%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.96
    +0.18 (+1.41%)
     
  • GBP/USD

    1.2588
    -0.0050 (-0.40%)
     
  • USD/JPY

    151.4560
    +0.2100 (+0.14%)
     
  • Bitcoin USD

    70,617.10
    +802.20 (+1.15%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,959.01
    +27.03 (+0.34%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

If You Invested $1000 in Jack In The Box 10 Years Ago, This Is How Much You'd Have Now

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Jack In The Box (JACK) ten years ago? It may not have been easy to hold on to JACK for all that time, but if you did, how much would your investment be worth today?

Jack In The Box's Business In-Depth

With that in mind, let's take a look at Jack In The Box's main business drivers.

Based in San Diego, Jack in the Box Inc. is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants, and is one of the nation’s largest hamburger chains. In 1951, the company opened its first restaurant and since then Jack in the Box has become the largest hamburger chains. On the basis of number of restaurants, the company’s top 10 markets comprise nearly 70% of the total system Jack in the Box is also the second largest QSR hamburger chain in nine of those 10 markets.

During the second quarter of 2020, the company acquired eight franchise restaurants as a result of a legal action filed in October 2019 against a franchisee. It received the judgment in January 2020, thereby granting possession of the restaurants. As of Jan 17, 2021, Jack in the Box system included 2,237 restaurants across 21 states and Guam. Notably, the company had 93% franchised restaurants.

Previously, the company operated under Jack in the Box quick-service restaurants and Qdoba Mexican Eats fast-casual restaurants.

In December 2017, the company signed an agreement to sell Qdoba to Apollo Global Management, LLC. On Mar 21, 2018, the company finally announced the sell-out of Qdoba Restaurant Corporation. Jack in the Box sold Qdoba to an affiliate of certain funds, managed by the affiliates of Apollo for roughly $305 million in cash. In connection to the sale, the terms of credit facility demand Jack in the Box to make a pre-payment of $260 million to retire outstanding debt under its term loan.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Jack In The Box ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in April 2011 would be worth $5,389.49, or a 438.95% gain, as of April 13, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 214.12% and the price of gold went up 14.60% over the same time frame.

Analysts are anticipating more upside for JACK.

Shares of Jack in the Box have outperformed the industry so far this year. Notably, the company has been benefiting from initiatives like regular menu innovation, increased focus on delivery channels and marketing strategies. Also, it is expanding its mobile application in a few markets that support order-ahead functionality and payment. Currently, the company plans to invest in drive-thrus to boost sales. This along with the implementation of digital menu board and menu board canopies is part of the company’s developmental plans. Meanwhile, the company is shifting focus to travel-indulgent food that offers great overall value. Thus, increased focus on food packaging and portability is likely to enhance customer experience in the upcoming periods. Earnings estimates for 2021 have moved up over the past 30 days.

Shares have gained 8.76% over the past four weeks and there have been 11 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement