Jack in the Box (NASDAQ:JACK) stock rose sharply on Tuesday as Goldman Sachs told clients that the chain’s ICR presentation only increased their bullishness on the name.
Specifically, the bank’s analysts said that a raised same-store sales guide to the “mid to high single digit”, from a prior “mid-single digit,” growth rate indicates a stronger than expected quarter underway. The team suggested a mobile app and store expansion efforts are bearing fruit.
“We came away from today’s meetings with our long-term buy thesis intact as we believe JACK is in the early stages of an accelerating unit growth story,” the analysis stated. “We also continue to believe that management will execute on its refranchising initiative in the coming quarters, resulting in a return to an asset light business model and a potential return of capital to shareholders.”
Shares of the California-based burger chain rose 4.58% in the final minutes of Tuesday’s trading day.
Read more on the expectations for this week’s ICR conference.
Authore – Abhi bhardwaj