Morgan Stanley Maintains Equal-Weight on Jack in the Box

Morgan Stanley is out with its report today on Jack in the Box

, maintaining Equal-weight. In its report, Morgan Stanley writes, "JACK's SSS came in better than expected and the outlook for the F4Q calls for an acceleration in two-year SSS trends (with the first 4 weeks coming within the +1-3% range at Jack), a bright sign in a relatively dour market. However, proceeds and gains from the sale of company stores continue to come in weaker than expected and cost pressures persisted, particularly food, which weighed on store margins (down 180 bp Y/Y)." At the time of posting, shares of JACK were trading at $20.08, up 6.30% from Wednesday's close.