Heavy short interest fuels sharp advance
Jack in the Box (NASDAQ:JACK) shares climbed another 10% on Tuesday, building on Monday’s 20% rally as investors continued to unwind bearish positions in the restaurant chain.
The stock has surged approximately 45% over the past five trading days, driven in part by a significant short squeeze.
Recent market data shows that 37.57% of the company’s public float is sold short, with a days-to-cover ratio of 10.6, highlighting the potential for further volatility as short sellers buy back shares to close their positions.
Recent debt offering adds to investor focus
The latest rally comes after Jack in the Box announced last week that one of its indirect, limited-purpose subsidiaries had completed the issuance of $500 million of Series 2026-1 7.624% Fixed Rate Senior Secured Notes, Class A-2.
The debt offering has coincided with heightened trading activity as investors continue to monitor the stock’s elevated short interest.