Wedbush takes Jack in Box off its Best Ideas list

Wedbush on Wednesday said it is removing Jack in the Box Inc. from its Best Ideas List but maintained its outperform rating on the restaurant chain. “We continue to believe JACK’s current valuation discounts an overly pessimistic view of management’s ability to successfully integrate the Deal Taco acquisition and to achieve unit growth acceleration and same-store sales growth over the longer-term across both brands,” Wedbush said in a research note. Wedbush said until is sees incremental visibility around Jack in the Box’s Taco refranchising efforts and its impact on earnings before interest, taxes, depreciation and amortization, it’ll remove the company from its Best Ideas list, which now includes 18 companies. Shares of Jack in the fell 16% on Tuesday after it issued a downbeat forecast for the year.

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