Jack in the Box Takeover Excitement Is Dampened by Wedbush Note on Valuation
iStock

Investors that jumped on Jack in the Box Inc. (JACK) during Thursday's session on reports that the fast food company was exploring a sale may want to pump the brakes following a note from analysts at Wedbush on Friday. 

Analyst Nick Setyan said that he believes the company is already fully valued while maintaining his "neutral" rating and $85 price target. 

Jack in the Box jumped 5.92% Thursday after Reuters first broke the story in the afternoon. The stock was rising 0.18% to $88.70 in premarket trading Friday. Earlier this year, Jack in the Box divested its Qdoba brand. 

Jack in the Box reportedly started talks with potential buyers, including private-equity firms, earlier this month. 

The fast food industry has gone through a series of consolidations in recent months, including the sale of burger chain Sonic to Arby's owner Inspire Brands for about $1.57 billion minus debt in late September.

Setyan also wrote that he doesn't expect any offers for Jack in the Box to approach the multiple Sonic received in its sale. 

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