Fast-food chain Jack in the Box (NASDAQ:JACK) reported Q3 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 6.6% year on year to $326.2 million. Its non-GAAP profit of $0.30 per share was 37.4% below analysts’ consensus estimates.
As the regular session of the US market on Tuesday comes to an end, let's delve into the after-hours session and discover the top gainers and losers shaping the post-market sentiment.
Shares of fast-food chain Jack in the Box (NASDAQ:JACK)
fell 2.7% in the morning session after UBS lowered its price target on the stock to $17 from $20, citing concerns about sales pressure ahead of the company's fourth-quarter earnings report.
A number of stocks jumped in the afternoon session after investors continued to pile into value-oriented names amid growing valuation concerns. This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced.
Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over.
The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.
Restaurants are go-to meeting hubs for friends, family, and colleagues. But the side dish is that they’re quite difficult to operate because high inventory and labor costs generally lead to thin margins at the store level.
This leaves little room for error if demand dries up, and it seems like the market has some reservations as the industry has tumbled by 14.4% over the past six months. This performance is a noticeable divergence from the S&P 500’s 15.3% return.
Shares of fast-food chain Jack in the Box (NASDAQ:JACK)
jumped 3.7% in the morning session after the company announced the appointment of two new independent directors, Mark King and Alan Smolinisky, to its Board of Directors.
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south.
While some investors embrace risk, mistakes can be costly for those who aren’t prepared.
Shares of fast-food chain Jack in the Box (NASDAQ:JACK)
fell 9.1% in the afternoon session after the company announced the sale of its Del Taco subsidiary for $115 million, a steep discount from its original purchase price. Jack in the Box had acquired the taco chain for $575 million in 2021, meaning the sale represented a substantial loss on its investment. The decision followed a period of poor performance for both brands. Del Taco's same-store sales had declined for six consecutive quarters, and Jack in the Box's own sales performance had also deteriorated, posting its worst results in years in a recent fiscal quarter. The company stated the sale was a move to return to simplicity and focus on its core brand. It planned to use the proceeds to pay down debt amid concerns about its financial health, including a high level of leverage and potential liquidity constraints.
The past year hasn't been kind to the stocks featured in this article.
Each has tumbled to their lowest points in 12 months, leaving investors to decide whether they're witnessing fire sales or falling knives.
A number of stocks fell in the afternoon session after President Donald Trump threatened to impose "massive" tariffs on Chinese products, reigniting trade war fears.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
