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Here's How Much a $1000 Investment in Jack In The Box Made 10 Years Ago Would Be Worth Today

How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Jack In The Box (JACK) ten years ago? It may not have been easy to hold on to JACK for all that time, but if you did, how much would your investment be worth today?

Jack In The Box's Business In-Depth

With that in mind, let's take a look at Jack In The Box's main business drivers.

Based in San Diego, Jack in the Box Inc. is a restaurant company that operates and franchises through Jack in the Box quick-service restaurants, and is one of the nation’s largest hamburger chains. In 1951, the company opened its first restaurant and since then Jack in the Box has become the largest hamburger chains. On the basis of number of restaurants, the company’s top 10 markets comprise nearly 70% of the total system Jack in the Box is also the second largest QSR hamburger chain in nine of those 10 markets.

During the second quarter of 2020, the company acquired eight franchise restaurants as a result of a legal action filed in October 2019 against a franchisee. It received the judgment in January 2020, thereby granting possession of the restaurants. As of Jan 17, 2021, Jack in the Box system included 2,237 restaurants across 21 states and Guam. Notably, the company had 93% franchised restaurants.

Previously, the company operated under Jack in the Box quick-service restaurants and Qdoba Mexican Eats fast-casual restaurants.

In December 2017, the company signed an agreement to sell Qdoba to Apollo Global Management, LLC. On Mar 21, 2018, the company finally announced the sell-out of Qdoba Restaurant Corporation. Jack in the Box sold Qdoba to an affiliate of certain funds, managed by the affiliates of Apollo for roughly $305 million in cash. In connection to the sale, the terms of credit facility demand Jack in the Box to make a pre-payment of $260 million to retire outstanding debt under its term loan.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Jack In The Box ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in April 2011 would be worth $4,840.39, or a gain of 384.04%, as of April 1, 2021, according to our calculations. This return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 199.65% and the price of gold went up 14.91% over the same time frame.

Going forward, analysts are expecting more upside for JACK. Shares of Jack in the Box have outperformed the industry in the past three-month period. Recently, the company reported solid first-quarter fiscal 2020 results, with earnings and revenues surpassing the Zacks Consensus Estimate. Moreover, the top and bottom lines improved 10% and 84.6%, respectively, on a year-over-year basis. Notably, the company has been benefiting from initiatives like regular menu innovation, increased focus on delivery channels and marketing strategies. Also, it is expanding its mobile application in a few markets that support order-ahead functionality and payment. This along with a focus on food packaging and portability is likely to boost customer experience in the upcoming periods. However, coronavirus-related woes persist. Due to the uncertainty concerning the pandemic, the company has not provided its fiscal 2021 guidance.
Over the past four weeks, shares have rallied 10.36%, and there have been 11 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.


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