Since reaching an intraday high last week of $77.90, shares of Jack in the Box Inc. (JACK) plummeted as much as 20%, falling to a new 52-week low of $62.20 on Thursday, thanks to the company missing Wall Street's fourth-quarter profit estimates. And now analysts aren't convinced that Jack in the Box has an answer for the all-day breakfast boon at McDonald's Corporation (MCD).

Although JACK shares have since recovered, closing Friday at $65.62 (up 1.77%), shares of the fast food chain ended down 8% for the week, below the prior week's close of $71.21. While the stock does look attractive at these levels, there are likely more declines ahead, given the San Diego-based company issued weak forecasts for its first quarter. (See also: Jack In The Box Springs Lower On Earnings Miss.)

McDonald's Breakfast Eating Jack's Lunch

On Friday analysts at Barclays, while maintaining their "equal weight" rating on the stock, lowered their price target on JACK shares to $75 from $83. While citing slumping sales as a result of McDonald's all-day breakfast menu, the analysts proclaimed Jack in the Box was battling the "perfect storm" of internal and external challenges.

In its most recent quarter, Jack in the Box's same-store sales climbed just 1.4%, which is three percentage points slower than the year-ago rise of 4.4%. Jack in the Box, which operates Qdoba Mexican Eats, a competitor to Chipotle Mexican Grill, Inc. (CMG), saw same-store sales at Qdoba rise by just 1.8%, compared to a 14% surge in the year-ago quarter. In other words, as Chipotle struggled with E.Coli, Qdoba didn't capitalize. The company is not giving up, however.

"In late January, we introduced multiple upgrades to the core menu at our Jack in the Box restaurants system-wide," reminded CEO Lenny Comma in a press release. "We are confident in our ability to drive profitable sales growth and brand loyalty over the long-term by balancing our messages to include both higher-quality, more craveable food along with differentiated value offerings." (See also: Jack In The Box Launches $200 Million Buyback Plan.)

The Bottom Line

Despite the company's confidence in its ability to turn things around, Wall Street doesn't seem completely onboard, at least not yet. There's still the issue of "lack of visibility" regarding the pace of Jack in the Box's rebound, noted the Barclays analysts. In other words, while the company has discussed (among other things) a franchise-based model, it remains unclear as to how this strategy will improve near-term earnings and same-store sales performance.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.