📊 JACK Key Takeaways
Is Jack In The Box Inc. (JACK) a Good Investment?
Jack in the Box faces severe financial distress with negative stockholders' equity of -$936M, indicating balance sheet insolvency despite recent revenue spike. While operating cash flow of $162.4M provides near-term liquidity relief, the company's negative net margin (-0.7%), massive long-term debt burden ($1.6B), and weak current ratio (0.66x) create significant solvency risk. The extraordinary 1956% revenue growth appears to be a data anomaly or significant restructuring rather than organic operational improvement, masking underlying operational struggles.
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.
Why Buy Jack In The Box Inc. Stock? JACK Key Strengths
- Strong operating cash flow generation of $162.4M with 39.8% FCF margin demonstrates ability to convert revenue to cash
- Operating income of $46.6M with 13.3% operating margin shows core business operations are marginally profitable before financing costs
- Reported 16 Form 4 insider filings in last 90 days indicate management trading activity
- 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 -$936M indicates technical insolvency and potential covenant violations on $1.6B debt
- Severe liquidity crisis with current ratio of 0.66x and quick ratio of 0.65x; company cannot cover current liabilities with current assets
- Net loss of -$2.5M with negative net margin despite massive revenue growth suggests operational structure is fundamentally unprofitable
- Extremely high leverage with $1.6B long-term debt against only $2.0B total assets; interest coverage ratio not calculable due to negative equity
- 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 and path to positive book value
- Current ratio recovery and working capital position
- Debt refinancing needs and covenant compliance status
- Net income sustainability and margin expansion from reported -0.7%
- 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 39.8% 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 |
|---|---|---|---|
| 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 |
| Q3 2023 | $396.9M | $7.8M | $1.08 |
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 Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JACK's key strengths?
Claude: Strong operating cash flow generation of $162.4M with 39.8% FCF margin demonstrates ability to convert revenue to cash. Operating income of $46.6M with 13.3% operating margin shows core business operations are marginally profitable before financing costs. 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 -$936M indicates technical insolvency and potential covenant violations on $1.6B debt. Severe liquidity crisis with current ratio of 0.66x and quick ratio of 0.65x; company cannot cover current liabilities with current assets. 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 $349.5M.
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 $-0.13.
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 rating reflects both perspectives for balanced insights.
Is JACK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Jack In The Box Inc. has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. 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 -0.7% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy JACK stock in 2026?
Our dual AI analysis gives Jack In The Box Inc. a combined SELL rating 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 $23.2M. FCF margin is 39.8%.
How does JACK compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -0.7% (avg: 8%), ROE N/A (avg: 18%), current ratio 0.66 (avg: 1.5).