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Here's How Much a $1000 Investment in Jack In The Box Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Jack In The Box (JACK - Free Report) 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.
On May 7, 2021, the company declared a cash dividend of 44 cents per share. Notably, the company raised its quarterly dividend by 10% from 40 cents declared in the previous quarter. The hiked dividend will be paid out on Jun 11, 2021 to shareholders on record as of May 26, 2021.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Jack In The Box ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $5,448.23, or a gain of 444.82%, as of June 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 229.91% and gold's return of 12.07% over the same time frame.
Analysts are forecasting more upside for JACK too.
Shares of Jack in the Box have outperformed the industry so far this year. The company reported fiscal second-quarter 2021 results wherein earnings and revenues not only surpassed the Zacks Consensus Estimate but also improved year over year by 196% and 19%, respectively. Also, during the quarter, comps at Jack in the Box’s stores increased significantly to 14.5%. Notably, the company has been benefiting from initiatives like regular menu innovation, increased focus on delivery channels and marketing strategies. Also, increased focus on food packaging and portability is likely to enhance customer experience in the upcoming periods. This, along with the implementation of digital menu board and menu board canopies, is part of the company’s developmental plans. Meanwhile, earnings estimates for 2021 have moved up over the past 30 days.
Shares have gained 7.41% over the past four weeks and there have been 10 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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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 important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Jack In The Box (JACK - Free Report) 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.
On May 7, 2021, the company declared a cash dividend of 44 cents per share. Notably, the company raised its quarterly dividend by 10% from 40 cents declared in the previous quarter. The hiked dividend will be paid out on Jun 11, 2021 to shareholders on record as of May 26, 2021.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Jack In The Box ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in June 2011 would be worth $5,448.23, or a gain of 444.82%, as of June 23, 2021, according to our calculations. This return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 229.91% and gold's return of 12.07% over the same time frame.
Analysts are forecasting more upside for JACK too.
Shares of Jack in the Box have outperformed the industry so far this year. The company reported fiscal second-quarter 2021 results wherein earnings and revenues not only surpassed the Zacks Consensus Estimate but also improved year over year by 196% and 19%, respectively. Also, during the quarter, comps at Jack in the Box’s stores increased significantly to 14.5%. Notably, the company has been benefiting from initiatives like regular menu innovation, increased focus on delivery channels and marketing strategies. Also, increased focus on food packaging and portability is likely to enhance customer experience in the upcoming periods. This, along with the implementation of digital menu board and menu board canopies, is part of the company’s developmental plans. Meanwhile, earnings estimates for 2021 have moved up over the past 30 days.
Shares have gained 7.41% over the past four weeks and there have been 10 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.