Jack in the Box (JACK) to Divest Del Taco, RBC Capital Raises Price Target

Jack in the Box Inc. (NASDAQ:JACK) is one of the 13 Best Fast Food Stocks to Buy. On December 9, RBC Capital increased its price target on Jack in the Box Inc. (NASDAQ:JACK) from $16 to $25 while maintaining an Outperform rating. This update came in a research note previewing 2026 for Restaurants and Leisure companies.

RBC Capital views Jack in the Box Inc. (NASDAQ:JACK) favorably because of the company’s strong brand, ongoing innovation in the menu, digital initiatives, and potential for meaningful unit growth at a higher average unit value. The research firm’s analyst told investors in a research note that the company will need to execute and is expected to be more exposed to a possible consumer weakness compared to other companies in the quick-service restaurant space.

Jack in the Box (JACK) to Divest Del Taco, RBC Capital Raises Price Target

Jack in the Box Inc. (NASDAQ:JACK) has also entered into a definitive agreement to sell Del Taco Holdings Inc., the company’s wholly owned subsidiary that operates and franchises over 550 Del Taco restaurants. Yadav Enterprises Inc. will acquire Del Taco Holdings Inc. for $115 million in cash, subject to certain adjustments. According to the report by Jack in the Box Inc. (NASDAQ:JACK), this deal is expected to close by January 2026.

This divestiture is part of the company’s “Jack on Track” plan, which was announced in April. This transaction will help Jack in the Box Inc. (NASDAQ:JACK) improve its balance sheet and shift to a simpler, asset-light business model. It will also help the company focus on its core Jack in the Box brand.

Jack in the Box Inc. (NASDAQ:JACK) is an American restaurant company that operates and franchises Jack in the Box, one of the nation’s top fast-food burger chains.

While we acknowledge the potential of JACK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JACK and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 14 Best Large Cap Stocks to Invest In Now and 14 Most Promising Fintech Stocks to Invest In.

Disclosure: None. This article is originally published at Insider Monkey.