Jack in the Box (NASDAQ: JACK) shares rose more than 4% on Thursday following the company’s reported Q3 results, with revenue of $398.3 million coming in better than the Street estimate of $383.74 million. EPS came in at $1.38, worse than the Street estimate of $1.45.
According to the analysts at RBC Capital, Q3 Jack brand comps proved better than expected, while commentary around intra-quarter sales momentum helped drive shares higher.
And while cost headwinds continue to pressure margins, progress against refranchising efforts and focus on efficiencies point to the potential upside. The analysts raised their price target to $90 from $84, while reiterating their outperform rating.
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