JACKCAUTIOUS

Gross Margin

29.9%

Higher than 39% of Consumer Cyclical sector peers

Updated 144h ago

Sector Performance

39th percentile

JACK

29.9%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Jack in the Box's gross margin of 29.9% means that for every dollar of revenue, the company keeps about 29.9 cents after accounting for the direct costs of its food and packaging.

This is below the sector median of 36.3%, ranking the company in the 40th percentile among its Consumer Cyclical peers, indicating it is less efficient at covering those direct costs than most competitors. The metric is trending upward over the last eight quarters; the quarter-over-quarter change is a gain of 16.8%, though the year-over-year change is not available. While the current level is weak, the sharp upward trend suggests recent improvements in input cost management or pricing power, creating a potential opportunity if the trajectory continues. However, because gross margin remains well below the median, the combination of a below-average level with an improving trend points to reduced but still present risk. This mixed picture supports the CAUTIOUS overall verdict: the strengthening trend is encouraging, but the absolute margin still lags the sector, justifying caution rather than optimism.

Frequently Asked Questions

What does the Gross Margin tell investors about JACK?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does JACK's Gross Margin compare to its sector?

JACK's Gross Margin of 29.9% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 39th percentile.

Who are JACK's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.