Earlier this week, the restaurant company reported lower-than-expected 2016 first quarter results. Jack in the Box is battling the "perfect storm" of internal and external challenges, such as weakened sales as a result of McDonald's (MCD) all-day breakfast menu, Barclays said.
Jack in the Box system same-store sales grew by 1.4% during the first quarter, compared to a 4.4% increase during the year-ago period. Qdoba system same-store sales climbed by 1.8%, compared to a 14% increase during the year-ago period.
"Jack response is to be aggressive ... improve balance of value and premium, led by value bundles, coupled with expected traction on upgraded menu," Barclays said.
However, the firm is "struggling with (the) lack of visibility" on the pace of Jack in the Box's rebound, Barclays said.
Jack in the Box stock is up by 0.52% to $64.82 in early-morning trading on Friday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and weak operating cash flow.
You can view the full analysis from the report here: JACKJACK data by YCharts