Jack in the Box (NASDAQ: JACK) is an American fast-food restaurant founded by Robert O. Peterson in 1951 in San Diego, California, where it is still headquartered today. In total, the chain has 2,200 locations, primarily serving the West Coast of the United States. California is the state with the greatest number of outlets (927), followed by Texas (611), Arizona (177), Washington (143), Nevada (77), and the bi-state St. Louis metropolitan area (72, between Missouri and Illinois). Since 2000, the company has also opened outlets in North Carolina and other Southern states.[2] The company also operates the Qdoba Mexican Grill chain.
Jack in the Box Inc. is engaged in restaurant operations. The Company operates and franchises more than 2,700 Jack in the Box quick-service restaurants (QSR) and Qdoba Mexican Grill fast-casual restaurants. As of October 3, 2010, Jack in the Box system included 2,206 restaurants in 18 states, of which 956 were company-operated and 1,250 were franchise-operated. As of October 3, 2010, the Qdoba system included 525 restaurants in 43 states, as well as the District of Columbia, of which 188 were company-operated and 337 were franchise-operated. During the fiscal year ended October 3, 2010 (fiscal 2010), Qdoba franchisees opened 21 restaurants. In fiscal 2010, 46 Jack in the Box restaurants opened, including 16 franchise locations. In addition the Company expanded its presence in several markets in Texas, Colorado, Oregon, New Mexico and Oklahoma. In fiscal 2010, 36 Qdoba restaurants opened, including 21 franchise locations, and franchisees expanded into markets in Illinois, Texas, New Mexico, West Virginia and Mississippi.
Jack in the Box
Jack in the Box restaurants offer a selection of targeted at the adult fast-food consumer. Its menu features a variety of hamburgers, salads, specialty sandwiches, tacos, drinks, smoothies, real ice cream shakes and side items. Hamburger products include Jumbo Jack, Sourdough Jack, Ultimate Cheeseburger and Jack’s 100% Sirloin Burger. Jack in the Box restaurants also offer entree salads, specialty sandwiches, Teriyaki Bowls and every day value-priced products, called Jack’s Value Menu. It also offers customers the ability to customize their meals and to order any product, including breakfast items, any time of the day. These restaurants have seating capacities ranging from 20 to 100 persons and are open 18-24 hours a day. Drive-thru sales account for approximately 70% of sales at company-operated restaurants.
Qdoba Mexican Grill
Qdoba’s flavors include its Poblano Pesto and Ancho Chile BBQ sauces. Customer orders are prepared in full view, which gives its guests the control they desire to build a meal that is specifically suited to their individual taste preferences and nutritional needs. Qdoba restaurants also offer a variety of catering options that can be tailored to feed groups of five to several hundred. Its Hot Taco, Nacho and Naked Burrito Bars come with everything needed, including plates, napkins, serving utensils, chafing stands and sternos. Each Hot Bar is set up buffet-style so diners have the ability to prepare their meal to their liking, just like in the restaurant. The seating capacity at Qdoba restaurants ranges from 60 to 80 persons, including outdoor patio seating at many locations.
Jack in the Box competes primarily with other major national fast-food chains such as McDonald's, Yum! Brands (Taco Bell, Kentucky Fried Chicken, and A&W), and Wendy's. Food items include the Jumbo Jack, Potato Wedges, and Ultimate Cheeseburger.
Jack in the Box also offers an American version of ethnic cuisine - such as egg rolls and tacos, along with breakfast burritos. New items come in on a rotation every three to four months, including the Philly Cheesesteak and the deli style pannidos (deli trio, ham & turkey, zesty turkey) which were replaced by Jack's ciabatta burger and included the original ciabatta burger and the bacon n' cheese ciabatta. Jack in the Box also carries seasonal items such as pumpkin pie shakes, Oreo mint shakes, and eggnog shakes during the Thanksgiving and Christmas holidays. In locations in Hawaii, local delicacies are a regular part of the menu. They include the Paniolo Breakfast (Portuguese sausage, eggs, and rice platter) and teriyaki chicken and rice bowl. In the Southern United States, the company offers biscuits and sweet tea. In the spring of 2007 Jack in the Box also introduced its sirloin burger and followed this up with recently the sirloin steak melt. Its more recent foray into the deli market was the less-popular Ultimate Club Sandwich which was initially removed in Arizona due to poor sales and has since been phased out at all locations.
Most Jack in the Box locations are freestanding, while some may be attached to a filling station service center or at a shopping mall and center. Most Jack in the Box locations serve the entire menu, including breakfast, during all operational hours, and many Jack in the Box locations are open 24 hours a day, 365 days a year.
Jack in the Box's success came to a halt in the 1990s because of two main factors: the national recession of 1990-91 (the company suffered an 81 percent decline in net earnings in 1991) and more importantly, the E. coli epidemic of 1993: Four children died and hundreds of others became sick in the Seattle area as well as California, Idaho and Nevada, after eating undercooked and contaminated meat from Jack in the Box. It was the largest and deadliest E. coli outbreak in American history up to that time.
The chain lost millions of dollars in sales and revenue as a result of the disaster, and millions were paid out as settlements in wrongful death lawsuits. Moody's Investors Service downgraded Foodmaker's debt to junk status as it had no confidence that sales would return to normal levels. Bankruptcy was imminent. With the very survival of the company at stake, Foodmaker needed another turnaround strategy to distance themselves from the E. coli scare.
They got it from a new ad campaign developed by an advertising agency from Santa Monica, California, called Secret Weapon Marketing, led by Dick Sittig.
OVERALL
Beta: 0.80
Market Cap (Mil.): $1,015.29
Shares Outstanding (Mil.): 50.76
Annual Dividend: --
Yield (%): --
FINANCIALS
JACK.OQ Industry Sector
P/E (TTM): 13.90 22.64 12.60
EPS (TTM): -34.84 -- --
ROI: 7.05 3.48 1.12
ROE: 15.25 5.14 1.87
As mentioned above, in 1993, Jack in the Box suffered a major corporate crisis involving E. coli O157:H7 bacteria. Four children died of hemolytic uremic syndrome and 600 others were reported sick after eating undercooked patties contaminated with fecal material containing the bacteria at locations in the Seattle area and other parts of the Pacific Northwest. The chain was faced with several lawsuits, each of which was quickly settled (but left the chain nearly bankrupt and losing customers). At the time, Washington state law required that hamburgers be cooked to an internal temperature of at least 155 °F (68 °C), the temperature necessary to kill E. coli bacteria, although the FDA requirement at that time was only 140 °F (60 °C), which was the temperature Jack in the Box cooked. After the incident, Jack in the Box mandated that in all nationwide locations, their hamburgers be cooked to at least 155 °F (68 °C). Additionally, all meat products produced in the United States are required to comply with HACCP (Hazard Analysis and Critical Control Points) regulations. Every company that produces meat products is required to have a HACCP plan that is followed continuously. Following the outbreak, Jack in the Box hired highly respected consultant Dave Theno to lead their food safety turn around. He worked with food safety experts from manufacturing companies and created a comprehensive program to test for bacteria in every food product used at Jack in the Box. These programs, and especially the most stringent E. coli testing program in hamburger in the industry, were widely shared and copied by other companies. Jack in the Box was the recipient of the coveted "Black Pearl" award for innovations in food safety and quality in 2004.
Name Age Since Current Position
Lang, Linda 52 2010 Chairman of the Board, President, Chief Executive Officer
Rebel, Jerry 53 2005 Chief Financial Officer, Executive Vice President
Beisler, Gary 54 2000 President and Chief Executive Officer of Qdoba Restaurant Corporation
Comma, Leonard 40 2010 Chief Operating Officer, Senior Vice President
Rudolph, Phillip 52 2010 Executive Vice President, Chief Ethics & Compliance Officer, General Counsel, Corporate Secretary
Graham, Terri 45 2007 Senior Vice President, Chief Marketing Officer
Watson, Charles 55 2008 Senior Vice President, Chief Development Officer
Verdesca, Michael 2011 Vice President, Chief Information Officer
Blankenship, Mark 49 2009 Vice President - Human Resources
DiRaimo, Carol 49 2008 Vice President - Investor Relations and Corporate Communications
Hutchison, Murray 72 Lead Independent Director
Murphy, Michael 53 2002 Independent Director
Tehle, David 54 2004 Independent Director
Webb, Winifred 52 2008 Independent Director
Goebel, David 60 2008 Independent Director
Wyatt, John 55 2010 Independent Director
Myers, James 53 2010 Independent Director
COMPANY ADDRESS
Jack In The Box Inc
9330 Balboa Avenue
San Diego CA 92123
Jack in the Box Inc. is engaged in restaurant operations. The Company operates and franchises more than 2,700 Jack in the Box quick-service restaurants (QSR) and Qdoba Mexican Grill fast-casual restaurants. As of October 3, 2010, Jack in the Box system included 2,206 restaurants in 18 states, of which 956 were company-operated and 1,250 were franchise-operated. As of October 3, 2010, the Qdoba system included 525 restaurants in 43 states, as well as the District of Columbia, of which 188 were company-operated and 337 were franchise-operated. During the fiscal year ended October 3, 2010 (fiscal 2010), Qdoba franchisees opened 21 restaurants. In fiscal 2010, 46 Jack in the Box restaurants opened, including 16 franchise locations. In addition the Company expanded its presence in several markets in Texas, Colorado, Oregon, New Mexico and Oklahoma. In fiscal 2010, 36 Qdoba restaurants opened, including 21 franchise locations, and franchisees expanded into markets in Illinois, Texas, New Mexico, West Virginia and Mississippi.
Jack in the Box
Jack in the Box restaurants offer a selection of targeted at the adult fast-food consumer. Its menu features a variety of hamburgers, salads, specialty sandwiches, tacos, drinks, smoothies, real ice cream shakes and side items. Hamburger products include Jumbo Jack, Sourdough Jack, Ultimate Cheeseburger and Jack’s 100% Sirloin Burger. Jack in the Box restaurants also offer entree salads, specialty sandwiches, Teriyaki Bowls and every day value-priced products, called Jack’s Value Menu. It also offers customers the ability to customize their meals and to order any product, including breakfast items, any time of the day. These restaurants have seating capacities ranging from 20 to 100 persons and are open 18-24 hours a day. Drive-thru sales account for approximately 70% of sales at company-operated restaurants.
Qdoba Mexican Grill
Qdoba’s flavors include its Poblano Pesto and Ancho Chile BBQ sauces. Customer orders are prepared in full view, which gives its guests the control they desire to build a meal that is specifically suited to their individual taste preferences and nutritional needs. Qdoba restaurants also offer a variety of catering options that can be tailored to feed groups of five to several hundred. Its Hot Taco, Nacho and Naked Burrito Bars come with everything needed, including plates, napkins, serving utensils, chafing stands and sternos. Each Hot Bar is set up buffet-style so diners have the ability to prepare their meal to their liking, just like in the restaurant. The seating capacity at Qdoba restaurants ranges from 60 to 80 persons, including outdoor patio seating at many locations.
Jack in the Box competes primarily with other major national fast-food chains such as McDonald's, Yum! Brands (Taco Bell, Kentucky Fried Chicken, and A&W), and Wendy's. Food items include the Jumbo Jack, Potato Wedges, and Ultimate Cheeseburger.
Jack in the Box also offers an American version of ethnic cuisine - such as egg rolls and tacos, along with breakfast burritos. New items come in on a rotation every three to four months, including the Philly Cheesesteak and the deli style pannidos (deli trio, ham & turkey, zesty turkey) which were replaced by Jack's ciabatta burger and included the original ciabatta burger and the bacon n' cheese ciabatta. Jack in the Box also carries seasonal items such as pumpkin pie shakes, Oreo mint shakes, and eggnog shakes during the Thanksgiving and Christmas holidays. In locations in Hawaii, local delicacies are a regular part of the menu. They include the Paniolo Breakfast (Portuguese sausage, eggs, and rice platter) and teriyaki chicken and rice bowl. In the Southern United States, the company offers biscuits and sweet tea. In the spring of 2007 Jack in the Box also introduced its sirloin burger and followed this up with recently the sirloin steak melt. Its more recent foray into the deli market was the less-popular Ultimate Club Sandwich which was initially removed in Arizona due to poor sales and has since been phased out at all locations.
Most Jack in the Box locations are freestanding, while some may be attached to a filling station service center or at a shopping mall and center. Most Jack in the Box locations serve the entire menu, including breakfast, during all operational hours, and many Jack in the Box locations are open 24 hours a day, 365 days a year.
Jack in the Box's success came to a halt in the 1990s because of two main factors: the national recession of 1990-91 (the company suffered an 81 percent decline in net earnings in 1991) and more importantly, the E. coli epidemic of 1993: Four children died and hundreds of others became sick in the Seattle area as well as California, Idaho and Nevada, after eating undercooked and contaminated meat from Jack in the Box. It was the largest and deadliest E. coli outbreak in American history up to that time.
The chain lost millions of dollars in sales and revenue as a result of the disaster, and millions were paid out as settlements in wrongful death lawsuits. Moody's Investors Service downgraded Foodmaker's debt to junk status as it had no confidence that sales would return to normal levels. Bankruptcy was imminent. With the very survival of the company at stake, Foodmaker needed another turnaround strategy to distance themselves from the E. coli scare.
They got it from a new ad campaign developed by an advertising agency from Santa Monica, California, called Secret Weapon Marketing, led by Dick Sittig.
OVERALL
Beta: 0.80
Market Cap (Mil.): $1,015.29
Shares Outstanding (Mil.): 50.76
Annual Dividend: --
Yield (%): --
FINANCIALS
JACK.OQ Industry Sector
P/E (TTM): 13.90 22.64 12.60
EPS (TTM): -34.84 -- --
ROI: 7.05 3.48 1.12
ROE: 15.25 5.14 1.87
As mentioned above, in 1993, Jack in the Box suffered a major corporate crisis involving E. coli O157:H7 bacteria. Four children died of hemolytic uremic syndrome and 600 others were reported sick after eating undercooked patties contaminated with fecal material containing the bacteria at locations in the Seattle area and other parts of the Pacific Northwest. The chain was faced with several lawsuits, each of which was quickly settled (but left the chain nearly bankrupt and losing customers). At the time, Washington state law required that hamburgers be cooked to an internal temperature of at least 155 °F (68 °C), the temperature necessary to kill E. coli bacteria, although the FDA requirement at that time was only 140 °F (60 °C), which was the temperature Jack in the Box cooked. After the incident, Jack in the Box mandated that in all nationwide locations, their hamburgers be cooked to at least 155 °F (68 °C). Additionally, all meat products produced in the United States are required to comply with HACCP (Hazard Analysis and Critical Control Points) regulations. Every company that produces meat products is required to have a HACCP plan that is followed continuously. Following the outbreak, Jack in the Box hired highly respected consultant Dave Theno to lead their food safety turn around. He worked with food safety experts from manufacturing companies and created a comprehensive program to test for bacteria in every food product used at Jack in the Box. These programs, and especially the most stringent E. coli testing program in hamburger in the industry, were widely shared and copied by other companies. Jack in the Box was the recipient of the coveted "Black Pearl" award for innovations in food safety and quality in 2004.
Name Age Since Current Position
Lang, Linda 52 2010 Chairman of the Board, President, Chief Executive Officer
Rebel, Jerry 53 2005 Chief Financial Officer, Executive Vice President
Beisler, Gary 54 2000 President and Chief Executive Officer of Qdoba Restaurant Corporation
Comma, Leonard 40 2010 Chief Operating Officer, Senior Vice President
Rudolph, Phillip 52 2010 Executive Vice President, Chief Ethics & Compliance Officer, General Counsel, Corporate Secretary
Graham, Terri 45 2007 Senior Vice President, Chief Marketing Officer
Watson, Charles 55 2008 Senior Vice President, Chief Development Officer
Verdesca, Michael 2011 Vice President, Chief Information Officer
Blankenship, Mark 49 2009 Vice President - Human Resources
DiRaimo, Carol 49 2008 Vice President - Investor Relations and Corporate Communications
Hutchison, Murray 72 Lead Independent Director
Murphy, Michael 53 2002 Independent Director
Tehle, David 54 2004 Independent Director
Webb, Winifred 52 2008 Independent Director
Goebel, David 60 2008 Independent Director
Wyatt, John 55 2010 Independent Director
Myers, James 53 2010 Independent Director
COMPANY ADDRESS
Jack In The Box Inc
9330 Balboa Avenue
San Diego CA 92123