Jack in the Box Springing Up Nationwide

A restaurant enterprise, Jack in the Box operates and franchises Jack in the Box® restaurants. Jack in the Box® comprises greater than 2,200 restaurants in 21 states and Guam. The Company also operates and franchises Qdoba Mexican Eats® – fast-casual dining. Qdoba has over 600 restaurants in 47 states, the District of Columbia and Canada. Jack in the Box has its corporate headquarters in San Diego, California.

The Company is growing its same-store sales at Jack in the Box® and Qdoba Mexican Eats® through remodels, equipment and technology. Additionally, its working to increase Jack in the Box franchise ownership to 90%-95%. It’s also looking to have an ROIC (Return on Invested Capital) from Operations of greater than 25% – its post refranchising objective (2018-2020). For Fiscal Year 2015, its ROIC from operations was 15.50%.

Jack in the Box® menu offerings include burgers, chicken, breakfast, Jack’s Munchie Meals®, fries, tacos & sides, shakes & desserts, salads, and drinks. The Qdoba Mexican Eats® menu includes Knockout Tacos®, burritos and bowls, 3-cheese nachos, loaded tortilla soup, grilled quesadillas, taco salads, kids’ meals, chips & dip, and breakfast. Qdoba Mexican Eats® has just added two Queso flavors to its menu: Buffalo Bacon Queso and Queso Verde.

Jack in the Box introduced the industry’s first breakfast sandwich in 1969 – its breakfast-on-the-go initiative back then. Recently, the Company introduced its new menu category, Brunchfast™.

Customers can select from three Brunchfast™ entrees. These include The Bacon & Egg Chicken Sandwich. This consists of a toasted English muffin served with Jack’s Homestyle crispy chicken fillet, topped with hickory smoked bacon, cheddar cheese, bacon mayo and a freshly cracked fried egg.

Brunchfast™ also offers the Brunch Burger. This is a buttery croissant topped with a juicy beef patty, freshly cracked fried egg, hickory smoked bacon, mayonnaise and American cheese.

The Brunchfast™ menus also includes the Southwest Scrambler Plate. This comprises scrambled eggs with roasted peppers, diced green chilies and pepper jack cheese (served with Homestyle potatoes, hickory smoked bacon or sausage and a buttery croissant).

Another initiative for Jack in the Box is its restaurant design and remodel program. This program features an improved new restaurant design. The Company’s goal is to create a restaurant place to be, not just a place to eat – a distinctive ambiance and setting.

The Company said, in its Q3 2016 earnings call, that margins at the Jack in the Box brand increased 50 basis points to 22.5%.  This was because advantageous commodity costs more than counterbalanced wage inflation. For its Qdoba Mexican Eats® brand, Q3 2016 company same-store sales grew 1%, propelled by transaction growth of 0.4% and catering, which contributed 0.6%.

Jack in the Box® and DoorDash have partnered recently on late night delivery in San Francisco, California. DoorDash is a technology company connecting customers with the most local restaurants via door-to-door delivery. DoorDash allows business-owners to expand their businesses through offering on-demand delivery, data-driven insights, as well as better in-store efficiency.

Jack in the Box and DoorDash have launched this delivery partnership in the San Francisco Bay Area. It lets customers have Jack in the Box’s entire menu delivered directly to their doors as late as 3 a.m.

Regarding the Qdoba Mexican Eats® brand, during the last four quarters, Jack in the Box has opened 35 company Qdoba restaurants. Regarding its fiscal year 2016 guidance Jack in the Box’s initiative is roughly 20 new Jack in the Box® restaurants opening system-wide; most will be franchise locations.

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