Jack in the Box downgraded to Neutral from Outperform at Wedbush

Wedbush downgraded Jack in the Box (JACK) to Neutral from Outperform with a price target of $40, down from $50. While Jack in the Box’s 30%-plus valuation discount to its pre-COVID historical median forward EV/EBITDA multiple and even greater discount to franchised peers is already a reflection of limited visibility into near- and medium-term same-store sales growth, unit growth, and margin trends, the firm had hoped relatively conservative FY25 guidance would increase the probability of upside this year. Wedbush no longer foresees positive near-term catalysts.