Jack in the Box reports 6.6% increase in same-store sales thanks to check growth and menu innovation

Article shared courtesy of NRN.com

New CEO Darin Harris discussed how the company quickly pivoted during the coronavirus pandemic to come out on top at a rough time for the industry

Joanna Fantozzi | Aug 06, 2020

Jack in the Box reported a 6.6% increase in same-store sales to round out a strong third quarter ended July 5, 2020, despite the company’s “substantial decline in traffic.” New CEO Darin Harris — who just came on board in June, replacing Leonard Comma, who announced his exit in December — attributed the company’s positive results, even with COVID-19-related traffic struggles, to average check growth of 20% and menu innovation, as well as the company’s ability to pivot quickly during a crisis.

The same-store sales performance — the strongest Jack in the Box has seen in five years — has continued into the company’s fourth quarter.

“We will apply what we’ve learned to future strategies to help preserve this momentum,” Harris said during Thursday’s earnings call. “One of our success drivers is dialing in the right value equation to drive overall sales, including bundles and up-sale strategies, which are appealing to our customers at this time.”

Harris said that in addition to creating meal bundles for families looking for options during the pandemic, they also relied on menu innovation to bolster performance. Newer items like the Tiny Tacos and popcorn chicken were popular over the past few months since they are so portable for grab and go options. Harris hinted that the company had more menu items “coming down the pipeline” to match customer need for variety, though the team would not divulge further information.

He said they also quickly pivoted to match consumer behaviors like customers demanding and noticing speed and service improvements and shifting their breakfast sales to later parts of the day as the daily commute rush largely disappeared while the country was shut down.

His biggest goal for the Jack in the Box brand moving forward, however, is expansion — a strategy that Harris first outlined when he was introduced to Jack in the Box.

“I am working on getting the team, process and tools in place to jumpstart growth but it will take some time,” Harris said, indicating that it takes 18 to 24 months to complete a major expansion plan and that they will be looking at their familiar regional markets, as well as new growth opportunities. “We’re feeling bullish about our current trajectory, especially in light of our current performance and continued momentum.”

Revenues for the third quarter increased to $242.3 million, from $222.4 million in the same period a year ago. Net income increased 60% to $32.6 million, or $1.42 per share, from $13.2 million, or 50 cents per share in the same quarter a year earlier.

Jack in the Box opened one net new store during the quarter and currently operates 2,244 restaurants in 21 states and Guam.

Back

What Clients Say About Patrice & Associates

  • Jonathan Litt was an amazing coach during my job search.

    The thing that stands out to me the most is you can tell he truly cares. He helped me gain self confidence through phone calls and was constantly checking in on me during the interview process. Not only was I able to acquire a great job with the help of Jonathan, but I received incredible insight. He is a very smart guy and is able to effectively explain his thoughts in a simple manner.          

    Thank you so much!

    Jacque J.

    Jonathan Litt was an amazing coach during my job search.
  • Karen Horton is personable, knowledgeable, and was instrumental to my Career Goals.

    Communication and correspondence with her was easy and fast and her feedback always proved very useful during the recruitment process.  With other recruiters I have dealt with in the past, I've usually had the impression that I was merely part of a quota of applications. This was not so with Karen, I am convinced that she had my best interest in mind as well as those of the company she was "hunting" me for.    

    I cannot thank Karen enough for all her assistance in what I am sure will be a long lasting relationship with my new employer.

    Regards,

    Carlos

    Karen Horton is personable, knowledgeable, and was instrumental to my Career Goals.
  • Ross Horton is the definition of what a professional account manager should aspire to be!

    He finds ways to help that best suits his candidate, now that takes passion for helping people! The way that he engages with his clients is truly rare to find. If you have the chance to work with him. Do it!

    Thank you,  Ross Horton and Patrice & Associates!

    Joel Rodriguez

    Ross Horton is the definition of what a professional account manager should aspire to be!
  • Dionne Spriggens is the definition of Dedicated!

    Dionne Spriggens is doing a great job with exceptional service.  Dionne is amazing with her persistence and the positive vibes she brings.  Since I the first time I spoke with her she has been nothing but professional and dedicated.

    I strongly believe that she will be a great asset to Patrice & Associates for many more years to come!

    Best regards

    Bovon L.

    Dionne Spriggens is the definition of Dedicated!
  • Shawn Hoye needs a raise!

    Shawn Hoye went above and beyond in matching me with a position and company that was best suited for me. He is passionate about what he does, and is with you every single step of the way. I would highly recommend Shawn Hoye and Patrice & Associates.          

    Thank you!

    Melissa

    Shawn Hoye needs a raise!