📊 JACK Key Takeaways
Is Jack In The Box Inc. (JACK) a Good Investment?
Jack in the Box faces severe fundamental challenges with negative stockholders equity of -922.1M indicating technical insolvency, coupled with deteriorating profitability (-120% YoY net income decline and 1.3% net margin). While operating cash flow remains positive at 162.4M, this is insufficient to offset the structural balance sheet issues and liquidity constraints (0.65x current ratio) relative to 1.6B in debt.
Jack in the Box shows strong operating cash generation and free cash flow, but those strengths are being offset by weak bottom-line profitability, very high leverage, and negative stockholders' equity. The reported surge in revenue is low quality unless it can translate into sustained net income and stronger balance-sheet metrics, which the latest figures do not yet show.
Jack In The Box Inc. Key Strengths (JACK)
- Strong operating cash flow of 162.4M providing liquidity buffer
- Positive free cash flow of 127.8M with 21.2% FCF margin indicating operational efficiency
- Respectable operating margin of 13.6% despite revenue challenges
- Strong operating cash flow of $162.36M and free cash flow of $139.14M indicate the core business still converts sales into cash effectively
- Operating margin of 13.3% suggests the business retains meaningful restaurant-level and corporate profitability before below-the-line costs
- Capital expenditure is modest relative to cash flow, supporting near-term financial flexibility despite balance-sheet pressure
JACK Stock Risks: Jack In The Box Inc. Investment Risks
- Negative stockholders equity of -922.1M - company is technically insolvent from balance sheet perspective
- Net income declined 120% YoY with extremely thin 1.3% net margin indicating profitability deterioration
- Weak liquidity position with 0.65x current ratio and only 43.0M cash against 1.6B long-term debt
- Poor debt servicing capacity with minimal equity cushion to absorb operational downturns
- Net income turned negative and net margin is -0.7%, showing that revenue growth is not currently translating into shareholder earnings
- Long-term debt of $1.60B combined with negative equity and sub-1.0 liquidity ratios points to a stretched balance sheet
- The extreme revenue growth rate appears low quality given the simultaneous earnings deterioration, raising concern about sustainability and comparability
Key Metrics to Watch
- Stockholders equity trend - critical to monitor recovery path toward positive equity
- Net income profitability - assess whether decline stabilizes and margins improve
- Debt reduction progress - evaluate deleveraging relative to cash flow generation
- Liquidity ratios - monitor whether current and quick ratios improve above 1.0x threshold
- Net income and operating margin progression to confirm whether revenue growth is becoming profitable
- Debt reduction, liquidity improvement, and cash interest burden relative to operating cash flow
Jack In The Box Inc. (JACK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
JACK Profit Margin, ROE & Profitability Analysis
JACK vs Consumer Sector: How Jack In The Box Inc. Compares
How Jack In The Box Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Jack In The Box Inc. Stock Overvalued? JACK Valuation Analysis 2026
Based on fundamental analysis, Jack In The Box Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Jack In The Box Inc. Balance Sheet: JACK Debt, Cash & Liquidity
JACK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Jack In The Box Inc.'s revenue has grown significantly by 48% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.30 reflects profitable operations.
JACK Revenue Growth, EPS Growth & YoY Performance
JACK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $254.3M | -$2.5M | $0.40 |
| Q1 2026 | $349.5M | -$2.5M | $-0.13 |
| Q3 2025 | $333.0M | $22.0M | $1.15 |
| Q2 2025 | $336.7M | $25.0M | $1.26 |
| Q1 2025 | $469.4M | $33.7M | $1.75 |
| Q3 2024 | $369.2M | $25.0M | $1.41 |
| Q2 2024 | $365.3M | $25.0M | $1.26 |
| Q1 2024 | $487.5M | $38.7M | $1.93 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Jack In The Box Inc. Dividends, Buybacks & Capital Allocation
JACK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Jack In The Box Inc. (CIK: 0000807882)
📋 Recent SEC Filings
❓ Frequently Asked Questions about JACK
What is the AI rating for JACK?
Jack In The Box Inc. (JACK) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 79% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JACK's key strengths?
Claude: Strong operating cash flow of 162.4M providing liquidity buffer. Positive free cash flow of 127.8M with 21.2% FCF margin indicating operational efficiency. ChatGPT: Strong operating cash flow of $162.36M and free cash flow of $139.14M indicate the core business still converts sales into cash effectively. Operating margin of 13.3% suggests the business retains meaningful restaurant-level and corporate profitability before below-the-line costs.
What are the risks of investing in JACK?
Claude: Negative stockholders equity of -922.1M - company is technically insolvent from balance sheet perspective. Net income declined 120% YoY with extremely thin 1.3% net margin indicating profitability deterioration. ChatGPT: Net income turned negative and net margin is -0.7%, showing that revenue growth is not currently translating into shareholder earnings. Long-term debt of $1.60B combined with negative equity and sub-1.0 liquidity ratios points to a stretched balance sheet.
What is JACK's revenue and growth?
Jack In The Box Inc. reported revenue of $603.8M.
Does JACK pay dividends?
Jack In The Box Inc. does not currently pay dividends.
Where can I find JACK SEC filings?
Official SEC filings for Jack In The Box Inc. (CIK: 0000807882) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is JACK's EPS?
Jack In The Box Inc. has a diluted EPS of $0.40.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is JACK's fundamental grade?
Based on our AI fundamental analysis in June 2026, Jack In The Box Inc. has a C grade with 79% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is JACK stock overvalued or undervalued?
Valuation metrics for JACK: ROE of N/A (sector avg: 18%), net margin of 1.3% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is JACK's AI grade for 2026?
Our dual AI analysis gives Jack In The Box Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is JACK's free cash flow?
Jack In The Box Inc.'s operating cash flow is $162.4M, with capital expenditures of $34.5M. FCF margin is 21.2%.
How does JACK compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 1.3% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.65 (avg: 1.5).