Latest news with #JackintheBoxInc
Business Wire
5 days ago
- Entertainment
- Business Wire
Jack in the Box and T-Pain Team Up to Unleash the Ultimate Late-Night Gaming Munchie Meal
SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) is turning up the volume on late-night cravings with its latest Munchie Meal collab: a flavor-packed, gamer-approved meal designed by none other than T-Pain – music icon, streamer, podcaster, and professional night owl. 'Late nights are when I'm at my most creative—whether I'm in the studio or gaming with my crew,' said T-Pain. 'Jack has always been the spot for those sessions. This Munchie Meal hits every craving when I'm up all night chasing wins.' Share Introducing The T-Pain Munchie Meal, a curated feast made for marathon sessions – whether you're grinding in Fortnite or vibing to late-night tracks. It's the newest drop in Jack's celebrity Munchie Meal series, following collabs with hip-hop heavyweights like Ice Cube and Snoop Dogg. What's Inside the T-Pain Munchie Meal? Built for peak late-night performance, the T-Pain Munchie Meal includes: Your choice between a Burg-R-Tater Melt or Chick-N-Tater Melt One of Jack's iconic tacos Medium Seasoned Curly Fries A Stuffed Cookie A small drink An exclusive T-Pain air freshener - a collector's item for true fans Need even more variety? Fans can also Build Your Own Munchie Meal with any entrée, two sides, and a drink. Truly customized for whatever mood the night brings. 'Late nights are when I'm at my most creative—whether I'm in the studio or gaming with my crew,' said T-Pain. 'Jack has always been the spot for those sessions. This Munchie Meal hits every craving when I'm up all night chasing wins.' From Drive-Thru to Digital: Jack & T-Pain Drop Into Fortnite This collab doesn't just hit the drive-thru—it's taking over the digital universe. Following the debut of Jack's CEO Minigames earlier this year, Jack is back with a new custom map: Jack Zone Wars, and this time, he's rolling deep with T-Pain. Set on T-Pain's oversized gamer's desk, Jack Zone Wars shrinks players as they battle, turning monitors, soda cans, and game controllers into terrain. Power-ups pulled straight from the T-Pain Munchie Meal add a delicious twist—grab a taco for health, a Stuffed Cookie for super speed, Curly Fries for a high jump, and a Burge-R-Tater Melt for a double pump bonus. Players who order a Munchie Meal through the Jack app unlock the exclusive with the T-Pain loadout, players deal more damage and unlock mythic weapons to help them beat out the competition. It all builds up to June 26, when T-Pain will host a live-streamed Fortnite event from his pro gaming studio, letting fans jump in, squad up, and compete in real time with Jack and the man himself. "T-Pain is a multi-hyphenate force and creative powerhouse—just like Jack," said Ryan Ostrom, Chief Customer and Digital Officer at Jack in the Box. 'We both thrive on variety. From music to gaming to food, T-Pain brings something different to every experience. At Jack, we've built our brand around that same idea—offering unexpected flavor mashups and bold choices for whatever you're craving. This Munchie Meal brings it all together for the fans who want more after dark." The T-Pain Munchie Meal is available now until July 27 at all Jack in the Box locations nationwide, on and on the Jack app. Whether you're couch-locked, console-ready, or out on a late-night drive, Jack and T-Pain have you covered. About Jack in the Box: Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box ®, one of the nation's largest hamburger chains with approximately 2,200 restaurants across 22 states, and Del Taco ®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 600 restaurants across 17 states. For more information on both brands, including franchising opportunities, visit and Category: Corporate
Yahoo
5 days ago
- Business
- Yahoo
Jack in the Box and T-Pain Team Up to Unleash the Ultimate Late-Night Gaming Munchie Meal
The Grammy-winning artist and gaming legend joins Jack for a late-night takeover in the drive-thru and on Fortnite SAN DIEGO, May 29, 2025--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) is turning up the volume on late-night cravings with its latest Munchie Meal collab: a flavor-packed, gamer-approved meal designed by none other than T-Pain – music icon, streamer, podcaster, and professional night owl. Introducing The T-Pain Munchie Meal, a curated feast made for marathon sessions – whether you're grinding in Fortnite or vibing to late-night tracks. It's the newest drop in Jack's celebrity Munchie Meal series, following collabs with hip-hop heavyweights like Ice Cube and Snoop Dogg. What's Inside the T-Pain Munchie Meal? Built for peak late-night performance, the T-Pain Munchie Meal includes: Your choice between a Burg-R-Tater Melt or Chick-N-Tater Melt One of Jack's iconic tacos Medium Seasoned Curly Fries A Stuffed Cookie A small drink An exclusive T-Pain air freshener - a collector's item for true fans Need even more variety? Fans can also Build Your Own Munchie Meal with any entrée, two sides, and a drink. Truly customized for whatever mood the night brings. "Late nights are when I'm at my most creative—whether I'm in the studio or gaming with my crew," said T-Pain. "Jack has always been the spot for those sessions. This Munchie Meal hits every craving when I'm up all night chasing wins." From Drive-Thru to Digital: Jack & T-Pain Drop Into Fortnite This collab doesn't just hit the drive-thru—it's taking over the digital universe. Following the debut of Jack's CEO Minigames earlier this year, Jack is back with a new custom map: Jack Zone Wars, and this time, he's rolling deep with T-Pain. Set on T-Pain's oversized gamer's desk, Jack Zone Wars shrinks players as they battle, turning monitors, soda cans, and game controllers into terrain. Power-ups pulled straight from the T-Pain Munchie Meal add a delicious twist—grab a taco for health, a Stuffed Cookie for super speed, Curly Fries for a high jump, and a Burge-R-Tater Melt for a double pump bonus. Players who order a Munchie Meal through the Jack app unlock the exclusive with the T-Pain loadout, players deal more damage and unlock mythic weapons to help them beat out the competition. It all builds up to June 26, when T-Pain will host a live-streamed Fortnite event from his pro gaming studio, letting fans jump in, squad up, and compete in real time with Jack and the man himself. "T-Pain is a multi-hyphenate force and creative powerhouse—just like Jack," said Ryan Ostrom, Chief Customer and Digital Officer at Jack in the Box. "We both thrive on variety. From music to gaming to food, T-Pain brings something different to every experience. At Jack, we've built our brand around that same idea—offering unexpected flavor mashups and bold choices for whatever you're craving. This Munchie Meal brings it all together for the fans who want more after dark." The T-Pain Munchie Meal is available now until July 27 at all Jack in the Box locations nationwide, on and on the Jack app. Whether you're couch-locked, console-ready, or out on a late-night drive, Jack and T-Pain have you covered. About Jack in the Box: Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box® , one of the nation's largest hamburger chains with approximately 2,200 restaurants across 22 states, and Del Taco® , the second largest Mexican-American QSR chain by units in the U.S. with approximately 600 restaurants across 17 states. For more information on both brands, including franchising opportunities, visit and Category: Corporate View source version on Contacts Press Contact: Casey MiddletonPublic Relations, Jack in the Boxmedia@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
6 days ago
- Business
- Business Wire
Jack in the Box Inc. Announces Dawn Hooper as Its Chief Financial Officer
SAN DIEGO--(BUSINESS WIRE)-- Jack in the Box Inc. (NASDAQ: JACK) and its Board of Directors announced Dawn Hooper as the chief financial officer for Jack in the Box, effective immediately. Hooper, a Jack in the Box veteran of 25 years, previously served as interim principal financial officer for Jack in the Box from August 2020 to January 2021, from February 2023 to August 2023, and from October 2024 to present, and most recently held the role of senior vice president, controller since December 2022. She has been with the Company since October 2000 and throughout her tenure, has held key leadership roles within Jack in the Box's finance organization, including assistant controller, vice president of financial reporting and senior manager of corporate accounting. 'Dawn brings deep financial expertise, institutional knowledge, and proven leadership to the CFO role,' said Lance Tucker, Jack in the Box Chief Executive Officer. 'I've had the privilege of working with her throughout my tenure at the Company, including during my time as CFO from 2018 to 2020, when her guidance and partnership were invaluable. She has been instrumental in supporting the company through periods of transformation, and the Board and I have full confidence in her ability to lead our finance organization as we execute on our JACK on Track plan and beyond.' 'Having been part of this company's evolution over the past 25 years, I am honored to step into this role as CFO at such a pivotal time for Jack in the Box and continue contributing to a Company I care deeply about,' said Hooper. 'With strong fundamentals already in place, my focus will be on improving long-term financial performance, streamlining our business model, and positioning the company for sustainable growth in the years ahead.' Prior to joining the Company, she began her career with KPMG LLP where she worked from September 1993 to September 2000. She has more than 30 years of experience in accounting and finance. Hooper received her bachelor's degree in accounting from University of San Diego from the Knauss School of Business. About Jack in the Box Inc. Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box ®, one of the nation's largest hamburger chains with approximately 2,180 restaurants across 22 states, and Del Taco ®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 590 restaurants across 17 states. For more information on both brands, including franchising opportunities, visit and
Yahoo
15-05-2025
- Business
- Yahoo
Q2 2025 Jack in the Box Inc Earnings Call
Chris Brandon; Vice President - Investor Relations; Jack in the Box Inc Lance Tucker; Chief Executive Officer; Jack in the Box Inc Dawn Hooper; Interim Chief Financial Officer; Jack in the Box Inc Ryan Ostrom; Executive Vice President, Chief Customer and Digital Officer; Jack in the Box Inc Unidentified Participant Lauren Silberman; Analyst; Deutsche Bank Brian Mullan; Analyst; Piper Sandler Andrew Charles; Analyst; TD Cowen Dennis Geiger; Analyst; UBS Logan Reich; Analyst; RBC Capital Markets Brian Harbour; Analyst; Morgan Stanley Jeffrey Bernstein; Analyst; Barclays Jake Bartlett; Analyst; Truist Securities Christine Cho; Analyst; Goldman Sachs Operator Thank you for standing by. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jack in the Box second quarter 2025 earnings webcast conference call. (Operator Instructions) Thank you. I will now turn the call over to Chris Brandon, Vice President of Investor relations. Please go ahead. Chris Brandon Thanks, operator, and good afternoon, everyone. We appreciate you joining today's conference call, highlighting results from our second quarter 2025. With me today, our Chief Executive Officer, Lance Tucker; our Interim Chief Financial Officer, Dawn Hooper; and our Chief Customer and Digital Officer, Ryan Ostrom. Select second quarter results were pre-announced on April 23, as part of our Jack on track plan announcement. Feel free to refer to the press release and conference call which took place that day for additional commentary related to the pre-announced metrics. For this reason, today's prepared remarks will be fairly brief. Following the prepared remarks, we will be happy to take questions from our covering cell side analysts. Note that during both our discussion in Q&A we may refer to certain non-GAAP items. Please refer to the non-GAAP reconciliations provided in the earnings release, which is available on our investor relations website at We will also be making forward-looking statements based on current information and judgments that reflect management's outlook for the future. However, actual results may differ materially from these expectations because of business risks. We therefore consider the Safe Harbor statement in the earnings release and the cautionary statements in our most recent 10-K to be part of our discussion. Material risk factors, as well as information relating to company operations are detailed in our most recent 10-K, 10-Q, and other public documents filed with the SEC and are available on our investor relations website. And with that, I'd like to turn the call over to our Chief Executive Officer, Lance Tucker. Lance Tucker Thanks, Chris, and I appreciate everyone joining us today. I will be brief as we provided several key metrics as pre-announcement items within our Jack on track plan three weeks ago. First, I'd like to reiterate my excitement around the changes we're making at Jack in the Box, namely, becoming a simpler asset-like company that drives sustainable and healthy long-term growth for our franchisees, as well as our investors. While our transformation won't happen overnight, we strongly believe the actions we're taking will meaningfully change the company's directions for the better in the near future. Turning to our second quarter results, there are a couple of main themes I'd like to highlight that impacted the quarter. First, the top line environment. It's well known that there is significant pressure on multiple income cohorts, and we've seen the results in our negative traffic. There are definitely more headwinds and tailwinds at the moment for most within our industry. To combat these challenges, we remain focused on our barbell strategy, digital growth, and innovative LTOs to differentiate ourselves. These elements are all fundamental to the Jack brand, and each can meaningfully draft top line momentum. While the team has a number of high priority Jack on track actions we're working through, allow me to emphasize that driving same source sales is and always will be our top priority. Second, our tech modernization and digital evolution continues to take shape, helped by continued increases in first party activity and flip kiosks, we are now at 18% digital sales system-wide. As we stated when announcing Jack on track, digital is an area where continued investment will be tremendously important, and we remain committed to becoming a digital leader within our category. The rollout of our new point of sale system is another key aspect of our technological advancement. We have successfully implemented the new system in its accompanying flip kiosks in nearly 1,500 restaurants. In our Jack on track announcement, we mentioned that the rollout impacted second quarter sales, and I would like to briefly provide some additional color into what we are experiencing. As we integrate modern technology with our existing legacy systems, some of which are decades old, we've encountered a few challenges. These issues are unrelated to our new POS system or the partners involved in the integration. Rather, they highlight the necessity for Jack and the market to continue overhauling its technology by investing in the rapid modernization of these legacy systems, which is already in progress. Before I move on, please note that while the sales impacts we've seen are temporary in nature and are being resolved as they arise, they do continue to impact results as we move into the third quarter. And lastly, before I turn it over to Dawn, I'd like to spend a moment reiterating our Jack on track plan elements. First, a reminder that there will be much more detail to come in August. As discussed during our April 23, call our objective is to position Jack in the box for long term sustainable growth, which we will accomplish by implementing several significant actions as follows. We will strengthen our balance sheet to accelerate cash flow and pay down debt while preserving growth oriented capital investments related to technology and restaurant re-images. We will also close underperforming restaurants to position ourselves for consistent net unit growth and competitive unit economics. And we will return overall simplicity to the Jack in the Box business model and our investor story. The team has started work on all of these initiatives, and I look forward to updating you on our progress with more specifics on our third quarter call. Now I'll turn the call over to our Interim Chief Financial Officer, Dawn Hooper for her remarks, after which we will take your questions. Dawn. Dawn Hooper Thanks, Lance, and good afternoon, everyone. I will start by reviewing our two brands individually, followed by details on our consolidated performance and capital allocation. Starting with our Jack brand, second quarter, same store sales decreased 4.4%, comprised of a franchise restaurant comp decrease of 4.5%, and a company-owned sales decrease of 4%. This result included a decrease in transactions and negative myths partially offset by many price increases which continue to moderate. As Lance mentioned, we continue to drive sales in our mobile and digital channels, which is essential in our efforts to increase active loyalty program membership and create personalized targeted promotions to this high-value channel. We are also excited by our kiosk implementation at both brands, both the freestanding kiosks at Dell and the flip kiosks now active in nearly 1,500 Jack locations as part of our new POS rollout. We feel great about our ability to achieve the target of 20% digital sales ahead of schedule. Turning to restaurant count, there were five restaurant openings and 12 restaurant closures in the quarter. Jack is still expecting to open between 35 to 40 restaurants for fiscal 2025, including openings in Chicago. Jack's restaurant level margin percentage in the quarter decreased to 19.6%, down from 23.6% a year ago, driven primarily by lower sales, continued inflation for commodities, wages, and utilities, as well as higher operating costs, partially offset by price increases and favorable beverage funding. More specifically, food and packaging costs as a percentage of sales declined 100 basis points from the prior year to 27.8%, driven by an increase in beverage funding related to a new contract entered into last quarter and many price increases, partially offset by commodity inflation of 3.4% in the quarter. Labor costs as a percentage of sales were 33.8%, increasing 320 basis points from the prior year. Wage inflation was 10.6% for the quarter, and mainly due to wage increases to comply with California's minimum wage law, which lapped its one-year mark on April 1. Occupancy and other operating expenses increased 170 basis points, driven primarily by higher rent, utilities, and other operating expenses, including third party delivery fees. Franchise level margin was $68.3 million or 40% of franchise revenues compared to $71.7 million or 40.4% a year ago. The decrease in dollars was mainly driven by lower franchise same store sales and the resulting decrease in royalty and rent revenue. Now turning to Del Taco. System same store sales declined 3.6%, with a franchise sales decline of 4.2% and a company-owned comp decrease of 1.7%. The lower sales were the result of a decline in transactions, partially offset by an increase in price. As mentioned last quarter, 100% of our company-owned restaurants have kiosks installed, and we are continuing to feed franchisees, increasing their adoption rate as well. Including kiosks along with third party delivery and mobile, Digital Mix now makes up over 18% of system-wide sales. We are also seeing positive momentum from the menu optimization initiative, which launched system-wide in the first half of Q1, driving improvements in both product mix and average check. Del Taco restaurant level margin was 12.8%, down 400 basis points from the prior year. The decline was driven mainly by lower sales and commodity and wage inflation, partially offset by many price increases. Food and packaging costs as a percentage of sales decreased 100 basis points to 24.6% due to favorable beverage funding, partially offset by commodity inflation of 5.7%. Labor costs as a percentage of sales increased 330 basis points to 38.2%, primarily due to wage inflation, which was 11.7% for the quarter, mainly due to increases to comply with California's minimum wage law. Occupancy and other operating costs increased 160 basis points, driven primarily by higher utility and maintenance and repair costs. Franchise level margin was 24.4% of franchise revenues compared to 28.9% last year. The decrease in franchise level margin percentage was driven by re-franchising and the associated impact of pass through rent, marketing, and purchasing fees. Del Taco restaurant count at quarter end was 591 with 6 openings and 4 closures during the quarter. Moving on now to our consolidated results. SG&A for the quarter was $35.5 million or 10.5% of revenues as compared to $37.5 million or 10.3% a year ago. The decrease of $2 million was primarily due to lower share-based and incentive-based compensation, partially offset by fluctuations in the cash surrender value of our company owned life insurance policies. Excluding net Coley gains and losses, as well as advertising costs, GNA was $26.2 million or 2.2% of total system-wide sales, down $4.4 million versus the prior year. Consolidated adjusted EBITDA was $66.5 million, down from $75.7 million in the prior year due primarily to the impacts from Del Taco re-franchising and sales de leverage and inflation experienced by both brands, partially offset by lower GNA. During the quarter, the company recorded non-cash goodwill and intangible asset impairment of $203.2 million for the Del Taco reporting unit. This charge resulted from the lower current performance and other assumption updates impacting our long-term forecast and related cash flows. Due to the non-cash goodwill, and intangible asset impairment charge in the quarter, we reported a consolidated GAAP diluted loss per share for the second quarter of $7.47 compared to diluted earnings per share of $1.26 in the second quarter of the prior year. Operating earnings per share, which includes adjustments for certain items, was $1.20 for the quarter versus $1.46 in the second quarter of the prior year. The effective tax rate for the quarter was 19.5% compared to 26.5% for the same quarter a year ago. The lower tax rate was primarily due to non-deductible goodwill impairment and non-deductible coley losses. The adjusted tax rate used to calculate the non-GAAP operating earnings per share this quarter was 24.8%. On the investing front, our capital expenditures were $21.5 million for the quarter and included investments in our restaurant technology and digital initiatives, as well as development of new company restaurants. We did not repurchase any shares of stock during the quarter, and as was previously announced, we discontinued our dividend. As of quarter end, we had available borrowing capacity of $96.5 million under our variable funding notes net of letters of credit issued. Our total debt outstanding at quarter end was $1.7 billion and our net debt to adjusted EBITDA leverage ratio was 5.5 times. Lastly, we'd like to reiterate that all guidance measures remain the same as provided on April 23, as part of the Jack on Track plan announcement. Thanks again for your time this afternoon, operator, please open the line for questions. Operator (Operator Instructions) Chris O'Cull, Stifle. Unidentified Participant Thanks guys. This is Patrick on for Chris. Lance, I wanted to ask you about the current trends in Jack relative to the down 44 you just ran into and curious curious if you can provide any color around maybe where you exited the quarter. I know it was widely known in the industry. February was soft and maybe how that's held up as you've moved into the third quarter. And then as you look at the comp performance in the quarter, I was curious if there are any geographic differences that were notable, particularly maybe in markets that over index with certain customer demographics. Lance Tucker This is Lance. I'll start on that and I'll get some input from Ryan as well. So starting with the third quarter, we're basically running in line with what we saw in the second quarter, which pretty well matches up with the guidance we've given. It remains a challenging industry environment, and as we've spoken to, we do continue to see some challenges, they're a little bit self-inflicted, certainly the consumer remains cautious, from a other comments I'll forward it over to Ryan here for a minute and let him jump in on anything I may have missed there. Ryan Ostrom I think I think you hit it right on the head. I think as we look, moving forward we're really going to be focused on our core strengths and equities as a brand, so you'll see us really focused on driving tickets through some munchi meal executions as well as driving innovation on our iconic curly fries. Next window and you'll see us puls in a lot of core value to drive the value guest in, to move forward. Operator Lauren Silberman, Deutsche Bank. Lauren Silberman Thank you very much. My question's a little bit of a follow up to the prior one. How much do you think of the pressure you're seeing right now is driven by company specific headwinds? You talked about the POS situation, but beyond that, is there a shortfall in the marketing strategy, your approach to value given the industry is going to remain challenging? I guess what are you doing differently in the back half that you didn't do in the first half of the year, to reaccelerate comps? Thank you. Lance Tucker Thanks Lauren. Lance, I'll start again and again turn it over to Ryan relative to company specific issues, I mean we've mentioned some of the IT issues that we think are probably 1% to 2% in the same store sales. We also over-index on the low income consumer, so I'm not sure not going to put a percentage on that, but certainly we feel like that's probably hitting us a little harder than it is others. I don't know that I see anything that was a particular shortfall on the marketing side, but I'll let Ryan talk to what we're doing to get things accelerated in the second half of the year. Lauren Silberman I think if you look in, a year ago, we had some strong comps as we were rolling over to launch of Smash Jack and so rolling over the execution of that is something we really have to focus on in the next few windows because we're really comping over the high mix of a premium burger. So that's where you'll see us really focus on that munchie meal and the trade up strategy with our T-Pain execution in the next window, really does really well for us, only in the late night, owning a munchy meal and driving ticket. We've seen box meals do really well in some of our competitors and so we're going to lean into that equity. As mentioned before, really driving that trans -- the transaction side is focusing on our curly fries, and we have two new flavors coming out. First was kind in the industry of chili crisps as well as barbecue chip flavored seasoned curly fries. These are our iconic seasoned fries. Now we have new flavors which should drive excitement for people to come in and just add on ticket, but also make that extra visit to try something new and innovative. And then on top of that, we are really focusing on that value guessing how do we look at our core offering and put out some strong core value to drive that guest in on an ongoing basis. Operator Brian Mullen, Piper Sandler. Brian Mullan Hey, thank you. Just a question on on Del Taco, understanding you're exploring strategic alternatives, can you just speak to the key priorities for that brand while that process is ongoing and, Lance with some fresh eyes on this brand. There are one or two things in particular where you see some op opportunity that maybe can get addressed as this process unfolds. Lance Tucker Yeah, thanks, Brian. That's a good question. I would tell you a couple of things relative to Del Taco. First, we've got to continue to execute operationally, and Tom Rose, the brand President over there and his team are working on that. We're also have been revamping our marketing some, and so you're going to see a little bit different tone coming out of our marketing as we move throughout the rest of the year. And then Tom and team have some kind of exciting menu additions. I don't I think I'm going to share those exactly right now, but some things they're working on on the menu, kind of looking backwards to some things we may have done in the past that I think are going to be exciting for the brand. So continue to drive marketing, bring out innovation and and drive operations. Operator Andrew Charles, TD Cowen. Andrew Charles Great, thank you. It looks like there's a step up in the allowance for doubtful accounts, and I'm curious as you go through the upcoming store closure program, there's risks for elevated bed debt expense that might hit the adjusted up. Dawn Hooper Yeah, this is done. The step up is similar to the step up or the charge that you saw in Q1. It's related to one specific franchise matter on the Del Taco side. I don't anticipate the closure program would accelerate or increase it in any way. Operator Dennis Giger, UBS. Dennis Geiger Great, thanks guys. I wanted to circle back just on value and you guys gave some some good color on it. Any anything more that you can say just kind of on where you think value is positioned right now, whether it's on scores or value incidents, and then as we look ahead, I'm not sure, how much more you can kind of add on on some of the value plans that are coming, but anything more to share at the high level on how you're thinking about where you should be positioned on value now relative to maybe where where you have been given the environment and given the competitive set. Thank you. Ryan Ostrom Yeah, I think, you look at our value because value in our business is very important, and I think it's trying to find that balance of what is the right value for the dollar. I think that. Value has changed though. I don't think it's all about low price. It's about, guests feeling satisfied is what they purchase. So even though, I mentioned munchie meal, we're seeing in the industry where $9, $10 dollars is considered a value because it's food by the pound and it, it's valuable for the guests. And so as you see us really focused on an ownable equity of munchie meal, we think there is value in that as we move forward. You also, like, as I mentioned, we will be looking at our core offering and say, what are those right items that we can drive the lower value guest in, at the right price point. We do think we have value on the menu. We still have our amazing two tacos, on the menu, we still have a lot of items under our munchies under four, which we're leaning into, so we have that wide variety. It's just making sure that message resonates and gets people to come to the store. Operator Logan Reich, RBC Capital Markets. Logan Reich Hey, good afternoon, guys. Thanks for taking my question. I guess just in a few weeks following the rollout of the jack on track, I'm just curious what the conversations with franchisees have been like and sort of how they're feeling about everything that's been going on and then just separately, I was wondering if you can share how much price you guys have been rolling -- have rolling off for for the rest of the year. Thanks. Lance Tucker Hi Logan, I'll start with the first part and I'll let Ryan cover the the price question there. But actually the conversations with the franchisees have gone quite well in my, a few months on board here, they have been tremendously supportive. When you think about specific to some of the Jack on track stuff, they generally be been behind it, and I think the reason for that is those guys are all in this for the long term. These are long term business owners that have been in the Jack system for a long time, want to be in the system a lot longer, and, turn them into generational businesses and the changes we're making with Jack on track really are more made to drive the business going forward for the next, 10, 15, 20 years than necessarily what it's going to do next quarter. So overall, I've been extremely pleased with the feedback I've gotten from the franchisees, from the reception I've gotten from the franchisees. And frankly from their support as we line up to do a lot of things that are going to change the business for the better. So I'll turn it over to Dawn actually and let her talk about the price we see rolling off. Dawn Hooper Yeah, so in November we had talked about our price being between 3% and 4%. The carryover is a little over 2%. Operator Brian Harbor, Morgan Stanley. Brian Harbour Yeah, thanks, good afternoon. Lance, maybe at that point, where exactly are the closures going to be concentrated like geographically I guess and then, is it a smaller number of franchisees or is it pretty broad. And how do you have a different view of of kind of new markets. Are are those still going to you you've obviously signed a bunch of deals in new markets are those still going to proceed as planned? Are you still open to to adding them during this time? How will that play out? Lance Tucker Hi, Brian, first of all it relates to the closure program, and we're going to give a lot more detail in August as to exactly what that's going to look like, but at a high level, it's going to be spread throughout the system, so there's not going to be -- you know what I would think to be a huge concentration in any one given area. I think as far as is it concentrated to a set number of franchisees, we're going to do our best to spread actually among a fairly broad number of franchisees, it is largely going to be driven on economics and sometimes you're going to have a given franchisee who have -- who may have more closures than others. Certainly that's going to be the case. But with that said, we are going to try to keep it pretty broad among the franchise base. And then finally, with regard to new markets, I do expect we'll continue to grow in new markets. We think we've got a lot of white space, we think we've got a lot of ability. To grow, I think the big -- bigger change from my perspective would be we want it to be more franchisee led than corporate led. So we will continue to meet the obligations we've made as far as building a long term franchisees in some of these markets. We'll just take a little bit less active role and how many of those are actually restaurants that we own versus restaurants we'll be asking the franchisees to build. But absolutely we want to keep going on those new markets. Operator Jeffrey Bernstein, Barclays. Jeffrey Bernstein Great, thank you very much, Lance, I just hoping to talk a little bit more about Del Taco. I know you mentioned a variety of strategic alternatives, including possible divestiture. I'm just wondering what the other options would be. It would seem like if you're looking to simplify the portfolio, the divestiture would be, I guess, your preferred route, but just curious to hear your thoughts there and whether you're pleased with any kind of early interest or how you think about the potential divestiture and time frame for such. Thank you. Lance Tucker I think overall, I can't get too deep into Del Taco as you would guess at least the potential sales process. What I would tell you though is we, we've had a lot of retail. We haven't even gone to official marketing yet on the thing. We're still, directionally a few weeks out on that without going into a lot of depth, and we have had significant reach out and interest in the brand. So as you, that's probably about as far as I can go on that when you think about other alternatives. I think given the early returns on the interest we seem to be getting, I feel pretty solidly that that would be the option we would go down. Operator Jake Bartlett, Truist Securities. Jake Bartlett Great, thanks for taking the question and I'm going to just build on one of the earlier ones about a new unit development and I guess you mentioned your excitement, and level of commitment to that strategy, maybe if you could also, you just give us an update on how many restaurant commitments you have, outstanding how many development agreements it's something that had been disclosed pretty regularly and I just want to see where the where the progress is there. Lance Tucker Sure, so first of all on new units. I mean, we are excited to continue growing. First of all, I think the key with what we're doing on the Jack on track stuff is really make sure we're set up with a good healthy franchise base that can grow from a position of strength. So while we are going to have some closures here coming down the road, as you, as you've seen from our announcements, I think where that's really going to net us is franchisees that are, not dragging along some units, frankly, that that probably need to close. It's going to free up dollars. We expect some of those dollars to flow into the new unit builds and then to piggyback on the new market question from a few minutes ago as well, and we've got Chicago where we expect to convert, around 8, I believe it is by the end of the fiscal year. We've got bills happening in other markets where there's Louisville, Salt Lake City. We're getting ready to be opening some units in Florida, so there's a lot going on there too. So, I think from a new unit standpoint, the picture still looks good. We just got to get it through a few closures here before we'll start to see it in the net in the net numbers as it relates to the development numbers. I don't have those in front of me at the moment, so that'll be something we'll need to circle back on. Operator Christine Cho, Goldman Sachs. Christine Cho Thank you for taking the question. So would you be able to share some observations on the various food part performances in the quarter? Are you seeing any particular pressure on breakfast or late night, and how are you seeing the market share progressing? Thank you. Ryan Ostrom Now when we look across day part, I think we, we've kind of seen a little bit, especially at the lunch and dinner time, but it's kind of been spread out evenly across, we had some success over the last, this past window that we really are trying to build off where we actually quickly sold out of our natural hot mozzarella sticks. We had a great partnership with the Red Bull that moved really well. So we've had success at certain executions and add-ons that we're willing to start building off moving forward, and our goal, as we mentioned before, is really focused on that barbell strategy with a balance of driving ticket with some of our core equities while also introducing some more value to drive trains. Chris Brandon And I'll just quickly chip in with I think you're looking for the development agreement or restaurant commitment number and it's since mid 2021, which is kind of where we've kept a running total going it's at 440. Operator Ladies and gentlemen, this concludes today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Jack in the Box Inc. (JACK): One of the Underperforming Stocks Targeted By Short Sellers
We recently published a list of . In this article, we are going to take a look at where Jack in the Box Inc. (NASDAQ:JACK) stands against other underperforming stocks targeted by short sellers. Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company's bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors. The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company's downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest. We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest. The front counter of the restaurant, with the menu illuminated in the background. Short interest: 17.09% 6 months' performance: -51.48% Jack in the Box Inc. (NASDAQ:JACK) is a franchisor and operator of quick-service restaurants. The company operates restaurants under the Del Taco and Jack in the Box brands. Its stock has lost half its value in the last six months, but a case could be made that the negatives are now well priced in. The company is highly leveraged, which is why investors are betting against a turnaround. However, the debt has a long-term maturity, and the company is doing a good job of increasing its cash reserves while keeping debt stable. Jack in the Box Inc. (NASDAQ:JACK) is also focusing on its franchise business to increase royalties and ensure stable cash flows. It is the Del Taco chain that is causing headaches, but the management has a different type of solution for this problem. A restructuring could be on the cards, and a complete divestiture of the business isn't being ruled out either. The firm could generate $200 million with a possible sale, which is a far cry from the $585 million it paid to take the business private in 2022. Overall, JACK ranks 8th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of JACK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than JACK but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
