Jack In The Box (NASDAQ:JACK) continues to struggle to rebuild its brand, and it's not coming cheap, as noted by Susquehanna, who maintains its "Neutral" rating on them, while lowering their price target.
Susquehanna said that, "growth. Lost company store profits from refranchising have not been offset by sufficient G&A savings and buybacks, and the margin gains from selling underperforming markets are being offset by food quality initiatives. In addition, the sales lift from re-models is being more than offset by related costs."
EPS for full year 2011 were lowered to $1.60 from $2.20 and its full year 2012 estimate is $1.97.
Jack In The Box closed Wednesday at $19.95, dropping $0.28, or 1.38 percent. Susquehanna has a price target of $20 on them, dropping by $2.
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