Goldman Sachs flags ongoing risks for U.S. restaurants in 2025, with macro uncertainty, weak consumer sentiment, and tariff pressures weighing on growth.
Commodity trends shifted in Q1, with deflation in grains but a spike in coffee prices. Restaurant stocks lag historic EPS multiples, and investors now eye April demand and potential tariff impacts.
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the traditional fast food stocks, including Jack in the Box (NASDAQ:JACK) and its peers.
Shareholders of Jack in the Box would probably like to forget the past six months even happened. The stock dropped 41.8% and now trades at $27.19. This might have investors contemplating their next move.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Shares of fast-food chain Jack in the Box (NASDAQ:JACK)
jumped 18.8% in the morning session after the company reported fourth-quarter results that exceeded analysts' expectations for same-store sales, EPS, and EBITDA. Additionally, its full-year EBITDA guidance came in above estimates, highlighting strong performance. Overall, this quarter had some key positives.
Fast-food chain Jack in the Box (NASDAQ:JACK) met Wall Street’s revenue expectations in Q4 CY2024, but sales fell by 3.7% year on year to $469.4 million. Its non-GAAP profit of $1.92 per share was 13.8% above analysts’ consensus estimates.
Shareholders of Jack in the Box would probably like to forget the past six months even happened. The stock dropped 25.4% and now trades at $38.50. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Barclays analyst Jeffrey A. Bernstein highlights key trends for U.S. restaurants in 2025, including mixed earnings results, easing inflation, and consumer outlook uncertainty.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the traditional fast food industry, including Jack in the Box (NASDAQ:JACK) and its peers.
Jack in the Box Inc. offered disappointing guidance when it reported its fourth quarter and full-year 2024 results on November 20. The fast-food company pointed to a “difficult top-line macro environment” as part of the reason for its showing.
Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at El Pollo Loco (NASDAQ:LOCO) and its peers.
Fast-food chain Jack in the Box (NASDAQ:JACK) missed Wall Street’s revenue expectations in Q3 CY2024, with sales falling 6.2% year on year to $349.3 million. Its GAAP profit of $1.12 per share was 1.1% below analysts’ consensus estimates.
