JACK - Earnings call 1 2024 | Jack in the Box Inc.

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Operator

Thank you for standing by, and welcome to the Jack First Quarter 2024 Earnings Webcast Call. I would now like to welcome Chris Brandon, Vice President of Investor Relations to begin the call. Chris, over to you.

Chris Brandon

Thanks, operator, and good afternoon, everyone. We appreciate you joining today's conference call, highlighting results from our first quarter of 2024. Chief Brian Darin Scott. are Chief and today Officer, Financial me Executive Harris; Officer, our With

Note our Following available which happy refer non-GAAP from website analysts. reconciliations to Relations prepared to on take during their remarks, refer jackonthebox.com. the at questions our our we non-GAAP items. provided covering Investor to we in and is Q&A, discussion will Please be that may both the sell-side release, earnings

information making forward-looking that statements We and will current the judgments management's on also for outlook be reflect based future.

that, company our materially However, may harbor our to well as public these results other are release business filed be in relating most our actual discussion. are of information the Relations our recent the as of risks. in in Chief Investor XX-Q, Officer, therefore, website. like differ available and operations recent Material safe Darin SEC Executive from and the XX-K, risk most with Harris. call over expectations with I'd statements and on to cautionary to our consider to factors, because the the earnings turn We XX-K documents detailed statement part And

Darin Harris

Investor Thank San person restaurant or we our you, to Day in us appreciate in. able at join And hosted Chris. everyone here tune in we support first Last years Diego. in-person several in month, our center who is

to brands AUVs existing space Jack $X.X white in by take at $X sales the Del new in reach the our markets. we ambition, During the box. X.X% our with the We bold step Investor upon new based our out Taco. introduced challenger achieve for growth net Day, and million communicated starting have next and million we at to exceeding to strategy two tremendous intend We and increase we our want in how break restaurant of expanding

franchise XX% growth support we sub EBITDA our lastly, restaurant Our further will XX% digital And restaurant sales. payback, generate achieving goals can our X-year AUV new strategy. by X-wall if top-tier with will be supported economics a

of achieve improving and focus to strengthen that to have the from level strategy: ambition I'd AUVs, the development achieving top-tier economics, will highlights phase are support next We capabilities. key ambition. entered and mention a there our our drivers driving be restaurant the of X transformation, quarter our our first few that like

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continue of serve level restaurant XXXX. restaurant economics. improvement to accelerate Jack off and a year X.X% level as to our in a switching Now, margin business, highlight coming for

a in and increase margin our is demonstrates XX.X% Our year-over-year, initiatives are X.X% that margin QX working.

focus soon financial Del EBITDA year. sales strengthen our on initiatives, our Rose some continue and can fundamental team realized Sarah will on McAloon very leadership which are new both We to franchisee further of profitability restaurant these and as adoption. gain this initiatives Tom be and as At focused restaurant-level Taco, of

solid highlighted QX X and closure to a on continue the progress restaurant execution will throughout capabilities Jack and to our restaurants agreements. Lake results provide well. perform Salt markets the restaurants. we Box. X X City, announced now continue development X expanded updates XXXX, We the by as lastly, and Louisville strength We start at enabled And and year. openings X in to at very franchise both in further at We And new now into

franchisee our new expansion, Florida Jack will X The is Michigan build the first signing add to to an another restaurants to second and additional one on that restaurants. by bring will XX

about already excited Del, will quarter. development first the XXX one At that construction Quarter permitting quarter very our we have XX,XXX Box campaign are support. innovation We currently demand new XX over flat this begins are be moment. brand. on sold in response Jack got first guests I a the soft had is sites pipeline briefly restaurants Mexico in QSR. end, XXX bold as on nearly in agreements system-wide open we're see will Jack phases. And received. no the our construction on exciting I'm in future guests quarter, industry are topic have or growth, also decade, and like restaurant I including to XX we that new for given we've continues in on burger X The to signed real excited Jack, grow, building for in that the it featuring with in the restaurants. agreements this I'd development at latest next have hands product Smash launch Our restaurant pleased who within we of our the most X have and burger now agreed, for tasted the restaurant the but may one the including report XX we best permitting their the a media net first potential very and week, and launch biased, we at key openings day high as value, to the the phases. full about the We television a currently market or launch, touch unit positive and during

to a competitive our guest value advantage utilize with work and best both brands. insights for to continue We franchisees approach on the make

Munchie In solid of our offers today's Pack, variety our environment, seeing our we box, from to provide our such Meals. Jack Wrap, are looking We $X results and Fan value. as value $X $XX are competitive even Jack more $XX everyday

value In guests famous So win Jack's money. go our offers providing brand And budget-conscious continue a look will of offer demonstrated and app and competition, meantime, opportunity points via Del have users we the X offers variety the for value beyond our for we provide on guests. our the food more new to aggressive Taco, menu, such our to tacos deal targeted an and for versus that for insights most low have At continue just to we $X.XX. to utilize the price to users. loyal improved an digital channel attract as

once with continued and initiative in to build our the I'm get menu from toward rolled average close, via about I remarkable drive both at growing sales Del. guest the a their franchisees a redesign We way out, thus now off thank in over helping and fully and our far like our providing will and experiences. also utilize members expect XXXX, strategy to will improvement. margin for good healthy while hook for upsell. team and I'd lead to And To start we Brian. this value turn excited learnings current call to passion us check

Brian Scott

and good Beginning was performance quarter individually, and our on allocation. X.X%, comps everyone. Darin, and will reviewing by X% system details in of the consisting our same-store followed X comps capital Jack Thanks, first X.X%. company-owned I with growth consolidated sales our franchise brands of start by afternoon, of Box,

increase are period. And were saw our from in transactions platforms. overall certainly sales the year soft-launch prior while by we build And check and continued and lift hook nice from price. Jack Our a success down, seeing Smash average transactions driven the during

positive our continued of service have and speed, sixth consecutive sequential related we to the posting increasing of trends X-second improvement. Additionally, operations with speed quarter a

stood strongest again notable from late-night once Regarding overall the contributor sales. was and contributors out daypart product categories, and sides. burgers The came to

driven costs as XX.X%, the $XX.X sales. full the by related primarily points the mainly a debt prior count. XX.X%, points packaging in to operating inflation the a to margin XX we net revenues expectations. fee to in franchisee X and as ago. sales level market, margin quarter. openings leverage Franchise by a year. a of wages compared higher company-owned XXX and expected lower This expanded million restaurant sale of remain of basis decrease restaurant insurance or other was reversal. our Hawaii Jack count XX.X% were line paid quarter. and of sales along Turning commodity by strong was year X.X% quarter, restaurant sales company declined commodity track The was in $XXX.X Labor million of to and $X.X XXX our objectives to to and million resulted X $X.X fell sales XX.X% with primarily percentage driven and a a XX.X% the XX.X% costs. points franchise growth in unit with to for to to their increased basis improvements. points year due deflation or Commodity Labor restaurant restaurant bad to by XX by X.X% year-over-year the partially achieve deflation, for lapping in Food due basis of operational percentage offset X,XXX, company-owned and basis costs. There was Occupancy quarter on leverage, level costs fiscal closure

of rose by of Turning increased the basis Del mix higher Occupancy quarter. with Same-store XX.X% utility franchise lower company-owned quarter to margin percentage restaurant The of commodity franchise and offset now in consisting restaurant X inflation, of openings XXX driven of XXX count as primarily at margin was was end was and Labor of unchanged Taco X.X%. basis up price at restaurants. Del a $X to to sales growth. level transactions. comps percentage comps which Average franchise XX change Franchise-level year-over-year, increased to X Taco and was partially mix X.X% well of to or Del X.X% was prior closures. basis Taco. operating due deflation by in decrease X.X%, as and other $X.X million XX.X%, million deflation. points a commodity or due well the Food support offset was in The was change to last wage transactions same-store X.X%. sales as packaging by the costs wage increases of restaurants, due by by sales partially primarily decreased higher of approximately in a menu XX%, sales XX.X%, a was a points driven XX.X% rent in year. XXX of the decrease primarily partially XX.X% compared inflation, revenues franchise and advertising, and refranchising and costs through as and performance utility the impact passed sales points offset year. XX.X% to as and expenses to is percentage higher which as to compared check

XX have QX, sell signed While month. Taco there an restaurants Del agreement later refranchising were we to no this in transactions

system-wide prior achieving and to includes X.X% settlement. an EBITDA Cola year, X.X% from quarter million having Both on transaction restaurants results. and quarter or our net which $X.XX Consolidated the from diluted We use a the Hawaii to flows GAAP XXXX. million include XX sales. XX.X%. of first XX the and year XXXX of for intent earnings an Del Consolidated gain quarter for in There the million certain per prior ago. $X.XX quarter refranchising. development compared G&A refranchised year. year. the were down of the the due $XX.X to was this was $XX.X or these Shifting goal the of $X.X agreements. also share $XX.X cash to was signed now end X.X% to refranchise of for Del first consolidated of week additional from our reflect adjusted tax as this remain selling year rate transactions excluding compared a expenses legal per in million lower year million was The to adjustments prior franchise SG&A earnings primarily track XX% by and ago. a franchised XX was prior Consolidated a noted $X.XX $X.XX the the The causes decrease $XX.X primary year. We year, of expenses, were letter litigation change. Taco restaurants. same Operating part previously to of quarter advertising in $XXX.X total decline was prior to the for in for EPS large gains was our revenues from year impacts The prior Cash versus due million XX.X% rate million, for XX.X% effective from tax operations compared first the this $XX.X of operating share, of X

legal $XX the with Torres final expectations. Overall, XXXX weather deferred in payments of disaster was tax First, we with settlement. the second, QX million incurred And a that million related consistent had to quarter program. on flow $XX payment in income relief the we connection cash into we our

approximately first to $XXX quarter, share Board-authorized $XX We February Directors remaining program. as of per paid repurchased a of XX, XXX,XXX the XX, the be dividend our March ongoing million our under on shares cash share million XXXX. declared Board for $X.XX currently we of During program. XXXX, repurchase part have On

had we notes million borrowing end, of $XXX quarter credit funding under facility. variable of capacity available As our and

total November. Our to leverage adjusted ratio every to would efforts sales, shareholder X.X% updates to thank from do at earnings X.X%, providing XX% the outlook that, as $X.X end for growth billion, what well to targets to With deliver our operating recent Investor and leverage debt Their to happy same-store during and following: of closing, to to our quarter X% Related to last call X%; XXXX growth expectations annual our ramping which outstanding our percentage updated margin unit XX%, with at Jack's open to of level Xx. EBITDA guidance, was and behalf provided on please Del not to are we'd was member every Del reaching Operator, are Jack Day, down some was a we XX% of of provide G&A franchise also And any restaurant net key they what drive XX%. the to to did some included we XX% achieving outstanding net sales debt Improving as to system-wide sustained take feel Taco growth.In brands. to value. as ability day and Q&A. the for to I our company-wide sales X% up that, free our digital to and questions. partners line X.X% and be Jack the like teams, Taco

Operator

The questions. a Instructions]. roster. compile take We'll our now open for now to floor [Operator is your moment

of with Our Brian from the comes first Bittner & line question Company. Oppenheimer

Brian Bittner

afternoon good guys. Hey, you. Thank

mid-single guidance it Jack Box intact. as for relates for in kept Just low full Box, sales Jack year same-store the in to your the to which is you digits,

quarter. first the in X.X% a did You

this impacted of that's and you're quarter the the year? in about Jack in Smash coming unfold the So I'm value that. know March how weather at just sales and pulsing anticipate you the some curious quarter, excited into first that guys in realize following I you I to the also Jack trends do in Box with very your burger rest

could unpack and So comps is be kind impact there or moving of on your forward, in weather what's anything catalyst helpful? the Jack that new just coming, Thanks. the underpinning you Box then the the would confidence

Darin Harris

it Well, I is Brian. think I'll Brian for first do in first second. turn it we're But all, what tough a turn of the that about talk were to to we really we Brian. have in had can over Jack knew Jack year. Smash that of comps to that QX, marketing and the into going this year and QX lapping of would So I'll it But say to Smash you, comment excited a Scott good the good and things the we other half the had back and coming. we some plan the year with We I for

at impacted as took industry quarter. the has provided and mentioned, of that would whole start the as calendar. plan I the a experienced you plan into we as the our some we guidance. marketing And you the that softness going year. point you So somewhere as a weather, seen into built we think We've had X.X that sales do add? with strong back-end Brian, in know mentioned, between probably us we the year, for But our what we account

Brian Scott

thanks. that's made Brian, And question. the Yes, a good summary, with

at year, of the when in be But tougher. our Darin looked said, calendar. for just stronger, as said, the the the from Darin January not at And because had half our going to we overall year. we of only the first year, pressure be plan this we it's to back And comps year the but back will as comps get the that we weather. some we As of the get March, half to would expect half were knew in easier the marketing

In to will AB we to implementing be come as that, closer some that still XXXX. price we have will addition

I early the full year try it's for going to to really ultimately, to So look the mean, is what year predict a in little like. us

a thing little out So of more that here. it more well. as more we've expected. towards to kept a others I'll of February several kind It an from has like been unfold hearing but we're the we months. came path of quarter everything than a we first still that industry down and it's here see just achieving add, number there's sounds still we next as the over within range, is, as

here to taking to direction move attract to We But the below good the soon trending right actions year-over-year going a the in in some we're again, positive weeks. be here out negative ensuing that still value we rolling Smash that and have we're in feel now. able we're So other slightly of guests.

Darin Harris

to would thing Brian said is as Del, what flat at we at seeing point. add this I that, industry-wide. we're seeing mentioned, we're similar trends The only And comps

Brian Bittner

quick volumes? expectations Thanks. just super talk on seeing Are you outperformance still you us your Louisville, what for Okay. new there? you're are in Are to Salt you Can markets, Lake. initially high new next the And can't you sustaining markets? week. opening expectations I the are real about your just what saw entering And guys Mexico Mexico? those believe

Darin Harris

Well, Mexico Mexico. very is I'm exciting. start going to with

Lake until have We We of in X border the our states. country in the Salt know highest-performing openings XXXX. were some had along we restaurants City,

So and the are of have about excited there. we anticipate Mexico, we the big out we partnership really volume with operator

as Lake Salt is far markets happier. As be restaurants unit We're new think $XXX,XXX $XX,XXX stores in our seeing lowest at the volumes very is -- sustained, couldn't week. time, I week, in opening are highest the a and strong.I and $XXX,XXX, range the this point in in City we our the performing our think per up Louisville, still new somewhere

We're a the great volumes. markets, lot put of design. on those that good So the we very in getting Crave reception design

And I in stores. so, I couldn't new we're right be now as doing about am excited as what

Brian Bittner

Thanks, guys.

Operator

the with comes of next from question Francfort Our Guggenheim. line Gregory

Gregory Francfort

seeing guys, might X%, of on indicator curious, see just company. your improving Are where you lot scores value pricing X X% or large traffic know I anything up that in you taken a going else I might pricing. be you're the leading a X% the for that pricing QSR the X%, business this I'm in over But mean, I show less you've than competitors. thanks your X% the year Hey, forward? years, think question. for last to on planning

Darin Harris

of we're would we company the around think in pricing pricing some to franchise there. on with the -- it, more catch competition. side line where go from standpoint, seeing more I this with up a do I see room needs is question The Greg,

as to not where franchisees room our competition. California compared have some see also in We the much price taken

we with have room heading So happening additional do think take up do X% April. AB X% what's to coming into XXXX anywhere to we with that some from price

Gregory Francfort

on pricing the just beverages or read terms in to the flow-through consumer? the that And of might Anything from give seeing you're any changes Thanks. or in maybe utilization on business front? you or Thanks. comps, thoughts attach any it. on of Got down trade that then a

Darin Harris

seeing as rates. is definitely under, thing consumer our same I most you're seeing that think is, challenges the some competition the with particularly under, we're the attach of you XX,XXX -- and that's that XX,XXX

through sure menu. And so how right we do right offerings, we right the the that value and focus make channels digital have have we our breakfast that is offerings deals the

our is our about sure So making by understand consumers and dayparts. we all focus segments

we wrap, more so a X I And channel $X Munchie And whether then and options, have offers Meals. $XX aggressive tacos beyond $XX Fanbox that, different the value as from it's standpoint, mentioned like Jack remarks, my even Pack, on our our or for $X.XX, that getting have will strong build through that loyalty tested last feel had is And we a menu members. year, and we out throughout we've that the good have point some deals Jack that value think to this channel performance. revised roll we a menu can multiple really about,

our feel doing tests. we the get what's implement seen to know Del. build menu with for with done we more those We there. it. then strategy early both Del good we're We've good solidify Jack, own, on margin our things We we at in and credit happening value time already and have really with as because redesign. So at sales then still hook some improvement And our feel we'll we've at its And about Dell. tests

bring how it's rate. Now more then build a into and people them we in attach do

Gregory Francfort

Darin. Thanks,

Operator

next comes America. from of Bank Senatore the Our line question of Sara with

Sara Senatore

Thank you.

comments like then the And And in you're guess and could you about strength there? I your softness mentioned why bit consumer a there is on the reengage little think, just you a reinvest a were Box, more the quarter. guests. that's the about I more, the to on burgers, you that sort breakfast have dayparts, daypart, of Just competitive? to the some follow-up in doing value what talk Jack of

what within where is industry you of have sharper your the So the can you control? think versus like you there think points how was much is, is do I'm tease it trying or and out -- industry you price consumer stronger? kind to

Darin Harris

Yes.

breakfast think have sure plan. competitive is we're with of got we And seeing what very a we've consumer. I to that a lot make

see We also breakfast consumer it know that our we for benefit business. when we that market to the

we'll So sure our calendar. that's part make marketing a of

also took much menu thought we but we will back bring margin were know to that it off found a We that that too of headwind to some speed, was we sales. we the beneficial items and

So we'll bring the not back items, some of all.

And so with breakfast, think more areas of it's have again, right that the to and we're competitive make one competing having in right we offering. I heavily the sure now

I more that into a versus So Cinnamon think a new as of we've introduced for flavor, chicken-focus I more cine's that's to what our and burgers, just a more toast one it last with and aggressive. we that performed quarter, we be And French was burger-focused. lean well. have stick to churro LTOs, like With a mini think promoted in relates it year, the difference then about then was

it also, this quarter then more outperformed stronger which than Jack year last our And at our out talked that's this of about, So why of burgers then performance versus time. we more Smash we've had expectations.

so launch excited Jack the And of Smash in about March. we're

Sara Senatore

you. Thank

Operator

Alton with Capital. Our next the from line Loop question of comes Stump

Alton Stump

your good clearly, overall, do down a overnight, you any are basis. have ask, dayparts, seeing for continuing Great. they trying are get or just this for quite clearly obviously you But outpaced you to late-night, Thank chatter share, other all, at in you want doesn't, are think, of are anybody about your and of And of not you some here time in signs competition? that you, that's course, the guys from afternoon. particularly daypart? sorry any that gain specifically, but late-night slowing You some late-night seeing think establish as to can daypart business that Darin, I pun. into the to peers,

Darin Harris

of aware sure that night, years. to competition very want done make for and we continue which we've what to own is We're the doing, late we

to for hours And solid a very late still And transactions were straight year-over-year seeing of sixth our Meals of at contributor quarter seeing operation so our the night. regions. We're benefiting some Munchie QX. positive we're

the time. right think I have right the offerings we And so, at

And wants competition so challenge we know the to us. that

that so we'll other at we it available late through be and And innovation opportunities ready for marketing night. see

Alton Stump

Thanks it. back in so I'll queue. hop the Great. Got much.

Operator

UBS. Geiger question next of Our Dennis line comes with the from

Dennis Geiger

Great. wanted Clearly, Thanks Jack. the I just product. guys. great little more a bit ask Smash to on a

those have for of to tried thus enough think it fortunate I us far.

saw to the end of in specific soft I strategy the it there. the You sort premium great launch. barbell guess of the there results being question is on

of add? you. strong that anything maybe Do be is to relative of bit kind going to long? think is base of industry acting about portion that Smash based of that knowing hero bit Thank for Jack, marketing soft where softer? the Is a dynamic? on more consumer Any new environment however you product, this that environment is you you think launch do different you've comments a cautiously. just a what As portion item the this a on around do in customer then seen and this much the a about to How that

Darin Harris

I'll the Any the Yes. competition. week, out best-tasting of the take over product day there

lot much there in think of marketplace. so that in is that from standpoint, And a Jack the tastier differentiated a I Smash differentiation what's than out

our Smash good really do can feel business. to Jack what we So about

So product the we It's what think of headwinds anticipate what is really we some it believe facing the have year good. our launch, ability of to so some saw we outperform now. just and throughout what we because help us with that we soft we're the with see does saw consumer that right I in challenges that in And overcome that's test. it the the can the

burger tell the very something with differently to leaning story we to is are And Jack the wait we that where QSR. can't campaign in done authentic about. about an and best So into what roll we far by Jack Smash marketing excited really in make has it our

Dennis Geiger

Darin. Thanks, it. Appreciate

Operator

question with the of Jefferies. next from comes Alex Our line Slagle

Alexander Slagle

if be you Thanks, this opportunities small was up the that where the you additional radar X that opportunity up more you or seem you were that you think like point. way on sort Detroit, guys. Do heading took of over again you markets the evolving there's think curious with portfolio But like in Didn't at there'll end there. units refranchise? fix and

Darin Harris

handle I'll this let Brian question.

Brian Scott

a I this mean, was, very I think, unique situation. Yes.

towards we're another on we happen path it's from franchise as the and a Del you to a that franchise. market. have operator As deal Tacos. the at we prepared in refranchising good a know, And particular just remarks, signed actually in one a to We mentioned have disengage case, wanted works here this the

We're And improving and more and invested took so intend trends we've to, that as point, some operations extending already market. in we refranchise absolutely now. at back it hours, seeing

to take in at to we're grow look to really the we're a absolutely well. good partnered we next like market as this Yeah. grow. that it's a we with can don't this, that back we in, case we'll So more going there, we start And as a operator market think trend restaurants. new be that think But

Darin Harris

To time before bringing has in, do had Brian related Brian them as refranchising. -- operating called we're preparing corporately a with term period that's we'll Detroit joined we evolving and what mentioned. markets us, that them we Brian use to add what for exactly of where a for Jack, And them

Alexander Slagle

of California, pretty it's clarify to comps just softer the being piece weather, on in that. I been know February's And Thanks. Okay. a wet, in January. here

Brian Scott

have been a it's patterns some continued here, well. storms different as do other part to in story and the with we that weather think persist markets of Yes, the

a that. it's have to that well of think we align marketing I consumer the So as our combination and of behavior, to some as

the that conjunction place around strategy of -- we in launch the here. on now. do we're good a with right in feel we've got so to Smash to that that we're next like And track turn month, And

Alexander Slagle

Great. Thanks.

Operator

Our from question with next Baird. Andrew North comes

Andrew North

perhaps a place, Box. could next near bit unit some for of Jack the taking have see of broadly, you EBITDA in question. more so ability to years? see that a confidence your provide in you you year. you this the your target tailwind Thanks seems various level cost XX% and to do the key that XX% food what are continuing over that achieve I several term? the risks savings guess the maybe in providing line And like on related commodities that reaching far the initiatives on was of in level target are update cost I at Great. hoping an It the

Darin Harris

Yes.

I where the getting XX.X% financial of we prior been in were improve as the had that to that able to XXX basis Jack close XXX XXXX fundamentals to points we mentioned through So we to looking we to inflation, inflationary improvement. these were initiatives at our we've impacts We've think some for XX% Box. in had called of in targets,

getting we've benefit So rolled taken from We're some deflation now. They've out some also those of right and initiatives. commodities some hold.

it's things those of our achievable are two an But we favor. in So feel target. working

continue at RLM and on improvement the to want are some specific on taking put on already Jack we haven't hold frame of running look it, these some actually We we that. we've time would at know the of and results showing side, you do if corporate the to point just initiatives a the had but XX.X%, scoreboard, to

and is how it. I looked sure so strategy, us new on earlier our operational And our help AUVs, we've do and strategy, is in a core pricing our those my restaurant ultimately with lead improve And in drive strategy. always at improve we growth. will in that challenged also done think our model to supply And part of mentioned top digital, chain economic our as -- comments, make it things focus, of will being light I innovation help we that

Brian Scott

of I'd AUV. we're is markets you in, add at the newer see as well look Yes. the some What as strong you

that's to So how going to component get another of that higher we're margin.

strategy design, -- new going that an path, important And we Crave as is in continue to and factor our restaurant on that. so that's that we And the help. think,

as we system the at restaurant as Jack restaurants and a foundational to with going technology. Investor opportunity the comes more lot from that to talked the Day, to be about and at our that, also more you really we're investing think X new point-of-sale very last menu Putting is thing AUVs we that in is, within I'd the automation walls. more that ahead -- drive efficiency see design innovation then additive. I And opening towards that's and look will add higher So of a in

roll we achieve or more us next we the whether XX% the product efficiency, that to And out do as couple will it's years, staffing, help on so can that that stores food well. to that as of know in -- drive in there's we

Andrew North

Thank all the you color. for

Operator

of Markets. the Gonzalez Capital from question Eric final line KeyBanc comes Our with

Eric Gonzalez

environment With Jack is similar to proactive Hey, advertise thanks other wages for about wage? higher a advertising first was versus in few contemplated, My on this start industries food labor regards to months, to being the letting And here. seen think I when me you next industries. the think wage California. fast talked I the in the with at going you other $XX queue question have in

this? gap these demand influx wondering all on if we're has you're bit of that a at seeing for whether I'm and early closed or whether positions So an

Darin Harris

So I bit think we're still a early.

as seen up rate We that's want to offering to to competition and influx advertise dramatic go kick take from wages. haven't know of standpoint. about we out starting We wage to off what a market ready we're the a the

early So the of we think that we're at stage occurring.

within that the movements their minimum some food increasing of care heard are have beyond service specifically of $XX. care sector, health and even We health wage

marketplace, So it's talked about we but still early know be the to do in starting stages.

Eric Gonzalez

if And on in refranchising. one Okay. could more I the squeeze

XX% were I this close that puts have an pretty said to XX% XX the you to end month think to later low of you XX target. more, sell sell you and to which going agreement

maybe wondering there's here only and little of of the given of bit that, kind we're in I'm a quarter range? the you're approaching upside end bottom So that second the if

Brian Scott

range confident about. that That's Yes. mentioned why we feel that I

interest. plenty have we of before, said we as So

likely us to disciplined and we range. in certainly of up end as opportunity So a going we're who for good way. partners. approach in again, that operators we to but in exceed it, we And well being these both as as to we're But markets partner being very good could, if wanted how do kind strategic it we there's with, development

Eric Gonzalez

very much. Got you Thank it.

Brian Scott

Eric. Thanks,

Operator

concludes This today's call.

You may now disconnect.

Jack in the Box (JACK) 21 Feb 242024 Q1 Earnings call transcript