Jack in the Box (NASDAQ:JACK) made headlines on December 17th, and for a good reason.
On Monday, the fast-food restaurant chain announced that it was looking at different ways to maximize shareholder value. To do so, Jack in the Box said it is looking at strategic and financing alternatives—including selling the company.
Potential Sale of Jack in the Box
Multiple news outlets, from the Wall Street Journal to Bloomberg, covered this story, circulating the news across the globe. The story, of course, is interesting as the possibility of selling any company is significant news. That circulation likely played a role in the company’s trading day, too. JACK stock spent the majority of the day in the green; it closed at $82.03, which put the stock up 2.12%.
However, there is another reason Jack’s story gained traction today. Less than a month ago, Jack in the Box reported its Q4 earnings, which disappointed Wall Street in terms of quarterly earnings per share. Bearing that in mind, as well as rising labor costs, which have hurt the fast-food sector, it makes sense the company is trying to figure out new ways to maximize shareholder value.
Just because Jack made the announcement today, however, does not mean this is a done deal. The company did confirm it has been in discussion with various buyers, but that there is no guarantee a deal will see the light of day.
Moving forward, the cannabis industry is going to be watching the movements of the hemp trend, while it’s likely the restaurant sector is going to be keeping an eye on the strategetic and financial alternatives Jack in the Box comes up with.
In the days leading up to January 1st, it’ll be important to keep an eye on both the company’s website for press releases, as well as the JACK stock.
What do you think of the potential selling of Jack in the Box? Do you think it would help shareholders?
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