Oppenheimer’s Brian Bittner says he would Buy any near-term dip in the shares of Jack in the Box Inc. JACK given “conservative” fiscal 2017 EPS outlook, "solid" sales trends and attractive valuation.
Quarter In Review
The restaurant operator’s adjusted fourth-quarter EPS of $1.03 beat Street's $0.88 estimate, with system-wide comps growing 2 percent (vs. Street's +1.9 percent). Qdoba comps rose 1.2 percent versus Street's +1.6 percent estimate.
The company sees 2017 EPS at $4.55–$4.75 (vs. Street's $4.75) and projects full-year comp growth at 2 – 3 percent versus Oppenheimer’s +2.6 percent estimate.
Bittner reiterated his Outperform rating and $115 price target.
Another Voice From The Street
Last month, Goldman Sachs’ Karen Holthouse stated that Taco Bell’s focus on entry level value and growing its breakfast business crates near-term risks for Jack in the Box as she launched coverage of the stock with a Sell rating and price target of $88.
At last check, shares of Jack in the Box rose 4.6 percent to $106.33 after falling to $97.52.
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