Jack In The Box (NASDAQ:JACK) Positioned Well for the Future

It appears Jack In The Box (NASDAQ:JACK) has taken the steps they needed to to make the company more profitable, and have reached the stage where that is apparently about to come back to them.

Barclays says, "We spent two days on the road with JACK management. Our meetings were timely for two key reasons... First, comps have reached an inflection point, positive (1QF11) for the first time in seven quarters, with significant benefit from 'easy' compares. This improvement has been driven by internal initiatives rather than sustainable uptick in the broader macro. Second, the long-term refranchising initiative is nearing completion, with the focus shifting to life after such efforts and the future business drivers. The underlying company operated system will be stronger, having sold the lower volume and lower cash flow units, while the broader system will be a higher return, higher margin, and less capital intensive business, both net positives."

Barclays raised full year 2011 EPS estimate from $1.60 to $1.62 and full year 2012 from $1.80 to $1.84.

Barclays reiterates an "Equalweight" rating on Jack In The Box (JACK), which closed Friday at $22.49, down $0.05, or 0.22 percent. Barclays raised their price target on Jack In The Box from $19 to $20.