Jack In The Box Inc (JACK, Financial) has experienced a notable uptick in its stock performance, with a market capitalization of $1.6 billion and a current price of $80.96. Over the past week, the stock has seen a slight decline of 0.33%, but this minor dip does not overshadow the impressive 29.20% gain over the past three months. According to the GF Value, the stock is currently significantly undervalued at $120.76, compared to a past GF Value of $140.01. This valuation suggests that JACK may still have room to grow, maintaining its status as significantly undervalued both currently and in the past three months.
Company Overview
Jack In The Box Inc, a player in the competitive restaurant industry, operates a chain of quick-service and fast-casual restaurants primarily in California. The company's diverse menu includes burgers, tacos, fries, sandwiches, salads, and shakes, with an emphasis on customization to cater to individual customer preferences. In addition to its in-store offerings, Jack In The Box provides catering and delivery services, enhancing its revenue streams. The company's two main operating segments are Jack in the Box and Del Taco, with the former being the primary revenue driver. 
Profitability Insights
Jack In The Box Inc boasts a strong Profitability Rank of 9/10, indicating a robust financial position within the industry. The company's operating margin stands at an impressive 16.23%, outperforming 91.28% of 344 companies in the same sector. Although the Return on Equity (ROE) data is not applicable, the Return on Assets (ROA) is a healthy 4.44%, and the Return on Invested Capital (ROIC) is 6.62%. These figures demonstrate Jack In The Box's ability to generate profits and manage its assets effectively. Furthermore, the company has maintained profitability for the past 10 years, a testament to its consistent performance. 
Growth Trajectory
The Growth Rank for Jack In The Box is an impressive 8/10. The company has demonstrated strong growth with a 3-Year Revenue Growth Rate per Share of 22.90% and a 5-Year Revenue Growth Rate per Share of 22.30%. Despite a projected slight decline in Total Revenue Growth Rate over the next 3 to 5 years at -1.30%, the company's 3-Year EPS without NRI Growth Rate and 5-Year EPS without NRI Growth Rate are 21.40% and 17.30%, respectively. The EPS Growth Rate for the future 3 to 5 years is estimated at 17.00%, indicating that Jack In The Box is expected to continue its earnings momentum. 
Investor Holdings
Notable investors have taken positions in Jack In The Box, with Steven Cohen (Trades, Portfolio) leading the pack holding 381,208 shares, representing 1.9% of the company. Keeley-Teton Advisors, LLC (Trades, Portfolio) holds 50,781 shares, accounting for 0.25%, and Mario Cibelli (Trades, Portfolio) owns 15,000 shares, equating to 0.07%. These significant holders reflect confidence in the company's future prospects and financial health.
Competitive Landscape
When compared to its competitors, Jack In The Box holds its ground with a market cap of $1.6 billion. Cannae Holdings Inc (CNNE, Financial) has a slightly lower market cap of $1.45 billion, while Cracker Barrel Old Country Store Inc (CBRL, Financial) and Cheesecake Factory Inc (CAKE, Financial) have market caps of $1.69 billion and $1.72 billion, respectively. This places JACK in a competitive position within the industry, with room for growth and market share expansion.
Conclusion
In summary, Jack In The Box Inc's stock performance has been robust, with a significant 29.20% gain over the past three months and a current valuation that suggests it is significantly undervalued. The company's profitability is strong, with a high Profitability Rank and solid margins. Growth prospects remain positive, despite a slight projected dip in total revenue growth. The confidence of significant holders and a competitive stance in the market cap landscape further bolster the case for Jack In The Box as a potentially lucrative investment. Investors should keep an eye on this company as it continues to navigate the dynamic restaurant industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
