Truist Downgrades Jack In the Box Amid Slowing Same Store Sales

Jack in the Box Inc.’s (NASDAQ:JACK) woes in the market have taken a turn for the worst. On May 27, Truist downgraded the stock from a Buy to a Hold, slashing the price target by more than half to $22 from $51. The downgrade is in response to the stock’s underperformance as the company struggles with slowing same-store sales.

A close-up of a hamburger, french fries, and a soft drink, representing the fast food chain.

The fast food restaurant chain stock has lost more than 49% in market value year to date. The underperformance comes on the heels of the company delivering disappointing second-quarter fiscal 2025 results. Similarly, Truist has downgraded the stock on expectations of continued underperformance in same-store sales amid deteriorating consumer spending power.

Jack in the Box plunged into a second-quarter net loss of $142.2 million compared to net earnings of $25 million for the second quarter last year. The wider-than-expected net loss came as same-store sales decreased 3.6% as total revenues fell 7.8% to $336.7 million. The company’s same-store sales have lagged behind the burger chain sector for seven consecutive quarters, affirming a trend of underperformance.

Amid the disappointing second-quarter results, Truist does not expect the proposed turnaround plan announced in April to have any significant impact in turning around the company’s fortunes. Instead, the firm believes that selling a sizeable real estate would generate more shareholder value.

Jack in the Box Inc. is a restaurant company that operates and franchises restaurants under the Jack in the Box and Del Taco brands. It operates one of the nation’s largest hamburger chains and also owns and operates Del Taco, the second-largest Mexican-American quick-service restaurant chain in the U.S.

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