Latest news with #LanceTucker
Yahoo
4 days ago
- Business
- Yahoo
Jack in the Box CEO says Hispanic consumers pulling back spending over 'uncertainty'
By Waylon Cunningham (Reuters) -Hispanic consumers in Jack in the Box's core markets "face uncertainty and have pulled back their spending," with the issue having an outsized impact on the U.S. fast-food chain's sales, its CEO said. Same-store sales for Jack in the Box declined 7.1% in the third quarter ended July 6. The company also reported a decline of 2.6% in same-store sales for another taco chain it owns, Del Taco. Jack in the Box CEO Lance Tucker, speaking on an earnings call on Wednesday, separated the pullback of Hispanic consumers from other trends, such as a drop in spending by lower-income consumers that he said was "well in line with industry trends" Tucker said the proportion of Hispanic consumers at Jack in the Box, which has core markets in Texas, California and the U.S. Southwest, is twice as high as some major competitors. Tucker did not specify the "uncertainty" he believes Hispanic consumers are facing. U.S. Immigration and Customs Enforcement officers have been intensifying efforts in recent months to deliver on Republican President Donald Trump's promise of record-level deportations. Rita Fernandez, director of immigration policy at UnidosUS, which describes itself as the largest Latino civil rights group in the country, said many migrants have been withdrawing from public life. "Jack in the Box is a favorite destination and dining choice for many Hispanics," she said, but "a day laborer who is undocumented maybe isn't going to take that lunch break at Jack in the Box if he doesn't know if he'll encounter ICE on the way." Tucker said the pullback in spending from Hispanic consumers has been "pretty consistent" since the beginning of the year. Trump's second term began in January. The timeline is consistent with what Wingstop CEO Michael Skipworth said last week, when he said areas with a high proportion of Hispanic and low-income consumers have had weaker demand since the beginning of the year. 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
Reuters
4 days ago
- Business
- Reuters
Jack in the Box CEO says Hispanic consumers pulling back spending over 'uncertainty'
Aug 7 (Reuters) - Hispanic consumers in Jack in the Box's (JACK.O), opens new tab core markets "face uncertainty and have pulled back their spending," with the issue having an outsized impact on the U.S. fast-food chain's sales, its CEO said. Same-store sales for Jack in the Box declined 7.1% in the third quarter ended July 6. The company also reported a decline of 2.6% in same-store sales for another taco chain it owns, Del Taco. Jack in the Box CEO Lance Tucker, speaking on an earnings call on Wednesday, separated the pullback of Hispanic consumers from other trends, such as a drop in spending by lower-income consumers that he said was "well in line with industry trends" Tucker said the proportion of Hispanic consumers at Jack in the Box, which has core markets in Texas, California and the U.S. Southwest, is twice as high as some major competitors. Tucker did not specify the "uncertainty" he believes Hispanic consumers are facing. U.S. Immigration and Customs Enforcement officers have been intensifying efforts in recent months to deliver on Republican President Donald Trump's promise of record-level deportations. Rita Fernandez, director of immigration policy at UnidosUS, which describes itself as the largest Latino civil rights group in the country, said many migrants have been withdrawing from public life. "Jack in the Box is a favorite destination and dining choice for many Hispanics," she said, but "a day laborer who is undocumented maybe isn't going to take that lunch break at Jack in the Box if he doesn't know if he'll encounter ICE on the way." Tucker said the pullback in spending from Hispanic consumers has been "pretty consistent" since the beginning of the year. Trump's second term began in January. The timeline is consistent with what Wingstop CEO Michael Skipworth said last week, when he said areas with a high proportion of Hispanic and low-income consumers have had weaker demand since the beginning of the year.
Business Wire
23-07-2025
- Business
- Business Wire
Jack in the Box Launches Texas Double Jack Promotion to Support Flood Relief Efforts Across the State
SAN DIEGO--(BUSINESS WIRE)--In the wake of the devastating floods impacting Texas Hill Country and beyond, Jack in the Box restaurants across the Lone Star State are coming together to support local communities and aid disaster relief efforts. From Thursday, July 24 through Thursday, August 7, Jack in the Box will donate $1 from every Texas Double Jack and Texas Double Jack Combo sold at all Texas locations to the American Red Cross in support of ongoing disaster relief and recovery work. Share From Thursday, July 24 through Thursday, August 7, Jack in the Box will donate $1 from every Texas Double Jack and Texas Double Jack Combo sold at all Texas locations to the American Red Cross in support of ongoing disaster relief and recovery work. The idea for the initiative came directly from Jack in the Box franchise operators, who felt compelled to act. 'This effort is a testament to the heart and commitment of our franchisee community,' said Lance Tucker, CEO of Jack in the Box. 'Franchise operators across Texas felt a deep responsibility to support their neighbors in the wake of the devastating floods. Their swift action and willingness to step up shows the powerful impact that can happen when local businesses come together to support their communities.' Jack in the Box has deep roots in Texas, with nearly 600 restaurants serving communities statewide. This effort reflects the brand's long-standing commitment to supporting kids and families across their restaurant communities. To support Red Cross Disaster Relief, visit your local Texas Jack in the Box and order a Texas Double Jack between July 24 and August 7. Together, we can help rebuild. For more on Red Cross disaster relief or to make a direct donation, visit 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 2,190 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
04-06-2025
- Business
- Yahoo
JACK Q1 Earnings Call: Revenue Misses Expectations Amid Cost Pressures and Technology Upgrades
Fast-food chain Jack in the Box (NASDAQ:JACK) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 7.8% year on year to $336.7 million. Its non-GAAP EPS of $1.20 per share was 4.2% above analysts' consensus estimates. Is now the time to buy JACK? Find out in our full research report (it's free). Revenue: $336.7 million (7.8% year-on-year decline) Adjusted EPS: $1.20 vs analyst estimates of $1.15 (4.2% beat) Adjusted Operating Income: $24.53 million vs analyst estimates of $49.19 million (7.3% margin, 50.1% miss) Adjusted EBITDA Margin: 19.7% Locations: 2,183 at quarter end, down from 2,195 in the same quarter last year Same-Store Sales fell 4.3% year on year (-2.3% in the same quarter last year) Market Capitalization: $365.5 million Jack in the Box's first-quarter results were shaped by a challenging consumer environment and company-specific headwinds. CEO Lance Tucker attributed the revenue decline to persistent negative traffic trends, particularly among lower-income consumers, and acknowledged that technology system upgrades caused temporary disruptions in restaurant operations. Management emphasized the importance of its barbell strategy—offering both value and premium menu items—to drive same-store sales, and highlighted continued digital growth, with digital sales reaching 18% of the system. Interim CFO Dawn Hooper noted that increased labor costs, especially wage inflation in California, as well as higher utilities and operating expenses, further pressured margins during the quarter. Looking ahead, management is focused on executing its Jack on Track plan, which includes simplifying operations, modernizing technology, and closing underperforming locations to strengthen the business for long-term growth. Lance Tucker stated, 'Driving same-store sales is, and always will be, our top priority,' and emphasized ongoing investments in digital channels and the rollout of new point-of-sale systems. The company also plans to accelerate cash flow to pay down debt while maintaining technology and re-imaging investments. As Jack in the Box navigates a cautious consumer environment and cost inflation, management sees digital and menu innovation, along with a return to consistent net unit growth, as key levers for future performance. Management pointed to consumer traffic declines, technology upgrades, and cost inflation as key factors that affected the quarter, while outlining steps to reposition the business for improved performance. Consumer traffic declines: The company saw continued negative traffic, particularly among value-conscious and lower-income consumers, which led to weaker same-store sales. Management noted that these pressures are widespread across the quick-service restaurant industry, but Jack in the Box may be feeling the impact more acutely due to its customer demographics. Technology system upgrades: The rollout of a new point-of-sale (POS) system and flip kiosks in nearly 1,500 restaurants caused temporary operational disruptions, negatively affecting sales. CEO Lance Tucker stated that while these technology challenges are being resolved, ongoing integration of legacy systems remains a focus area. Digital and loyalty growth: Digital sales reached 18% of systemwide sales, with management highlighting increased activity in first-party digital channels and loyalty program engagement. The company aims to achieve 20% digital sales ahead of schedule as part of its ongoing modernization efforts. Margin pressures from wage and commodity inflation: Labor costs rose significantly due to wage inflation, particularly in California following minimum wage increases. Food and packaging costs also rose, though partially offset by increased beverage funding from a new contract. These factors contributed to a decline in restaurant-level margins. Asset-light strategy and restaurant closures: Management reiterated its commitment to an asset-light model, emphasizing that the upcoming closure of underperforming restaurants is intended to enhance unit economics and support future franchise-led expansion. The Jack on Track plan also includes strengthening the balance sheet and prioritizing technology investment. Management expects ongoing macroeconomic headwinds, digital initiatives, and operational streamlining to drive performance in the coming quarters. Digital and menu innovation: The company will continue investing in digital ordering, loyalty programs, and new menu items—such as flavored curly fries and expanded munchie meal options—to attract both value-oriented and premium-seeking customers. Management believes these initiatives can help drive higher average checks and improve traffic trends over time. Cost control and operational efficiency: Jack in the Box plans to close underperforming restaurants and further modernize its technology infrastructure, aiming to improve profitability and cash flow. The company also intends to prioritize franchise-led growth in new markets while reducing its involvement in direct ownership. Industry and consumer challenges: Management remains cautious about the near-term outlook, citing persistent inflationary pressures on labor and commodities, as well as a cautious consumer environment. CEO Lance Tucker acknowledged that traffic trends remain soft and that the company will need to balance value offerings with margin protection. Looking forward, the StockStory team will closely monitor (1) the impact of digital and menu innovation on reversing negative traffic trends, (2) the execution and financial effects of the planned restaurant closures and technology modernization, and (3) progress on franchise-led expansion into new markets. Updates on the Del Taco strategic review and any developments in cost management will also be key indicators of future momentum. Jack in the Box currently trades at a forward P/E ratio of 3.7×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Miami Herald
01-06-2025
- Business
- Miami Herald
Popular fast-food burger chain closes all restaurants in key area
It's not exactly a golden era for the restaurant industry right now. Consider everything that's happened to most of our favorite dining establishments in the past five or so years. Related: See's Candies local rival unexpectedly closing after 50 years When Covid struck, unsuspecting restaurants across the U.S. were hit with a shock to the system overnight. Suddenly, even the trendiest, most exclusive, and most-frequented restaurants were empty and bare. Foot traffic fell to nearly zero overnight. Customers who'd been grappling for reservations were warded off. Chairs remained stacked on tables for weeks - and in some cases, months. Food perished, staff went un-tipped. Which meant that rent, utility, and other bills piled up. So many restaurants found themselves in the red, with no easy way of fixing it. Even after Covid waned, many customers were still exceedingly hesitant to venture inside and dine among strangers. Restaurants that weathered the pandemic and had ample outdoor seating could adapt by offering al-fresco dining. But that wasn't everyone. Of course, not every restaurant in the U.S. is located centrally in urban hubs or by picturesque waterfronts. These might attract lots of tourists or workers thanks to prime placement, but there are plenty of other restaurants that depend on routine, everyday customers to keep them afloat. More closings: Popular Mexican chain closing all restaurants, no bankruptcyIconic mall chain shuttering more stores foreverMajor gym closing multiple locations after franchisee bankruptcyAfter Chapter 11 bankruptcy, beloved retailer closes all stores Fast-food chains, for instance, are often positioned near highways and heavy traffic hubs to capture commuters and road-weary drivers hoping for a warm meal on the go. They offer little fanfare and are often cheaper compared to more upscale establishments. But as prices continue to rise and customers cut back on their discretionary spending, a weekly fast-food habit might be the first thing to go. This is partly what's been happening with Jack in the Box (JACK) , a popular chicken and burger chain. It has made the difficult decision to shutter all its restaurants based in the Kansas City metropolitan area. Jack in the Box also plans to close between 80-120 restaurants across the U.S. in 2025. Related: Popular bankrupt retail chain prepares to close all 96 stores It is currently in the midst of a new "Jack on Track" strategy, which will close down underperforming restaurants, streamline operations, and reduce debt. It's planning to reduce its debt by about $300 million in the next two years and potentially sell its Del Taco business, which it acquired in 2022. Only one Jack in the Box restaurant is slated to open in Kansas City in August 2025. CEO Lance Tucker called the restructuring effort "an overall return to simplicity for the Jack in the Box business model and investor story." The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
