Jack in the Box Inc. Message Board
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VALUE LINE PROMOTION
I went to the library the other day and looked up
JBX in the expanded volume of Value Line. I had
momentary fear when I could not find it, thinking it had
been dropped. Was I surprised to find it on page 321
of the standard Value Line. March 17th was its
debute in the standard volume. To quote:
"Jack in
the Box, a newcomer to The Value Line Investment
Survey is a standout in the competitive fast-food sector
of the restaurant industry. While many larger
chains, such as McDonald's and Burger King, have resorted
to promotional gimmicks or novel products
introductions to drive short-term sales, JBX attracts cutomers
by consistently delivering high-quality hamburgers
in a friendly environment. We think the company's
commitment to building an enduring, national brand name will
reward patient shareholders handsomely over the next
several years.
Management has demonstrated an uncanny
ability to stimulate sales growth, which augurs well for
continued financial success in fiscal 2000(ends October
1st) and beyond. In fact, same-store sales, a key
performance indicator for existing restaurants, have
increased in every quarter for the past five years. What's
more, we have no reason to believe that JBX will break
this streak anytime soon. The company's new
assemble-to-order program, which is being heavily advertised with
the slogan, We won't make it 'til you order it," has
proven to be a big hit with the public since it debuted
in 1999. So long as consumers favor freshly prepared
burgers over premade, reheated ones, JBX should be able
to leverage this program to turn a healthy profit.
Other likely top-line stimulants include
speed-of-service improvents and new bonus incentives for
restaurant managers.
Expansion into new markets should
also fuel top and bottom-line gains in the coming
years. The company recently made a foray into the
Southeast, opening stores in Charlotte, Nashville, and Baton
Rouge. Early results at these new locations have
exceeded chain averages, which suggests that JBX has
plenty of room to grow. Management's goal is to expand
the restaurant base at a rate of 10% annually.
Though untimely, these shares look like a good 3- to
5-year holding. In light of the company's strong growth
prospects we think it should have little trouble sustaing
15%-plus annual share-net growtih during this time
frame."
They project 3 to 5 year price between $40 and
$64.-
JBX will not acquire CKR. They will however,
purchase some of Hardees prime locations and convert them
into JBX stores. JBX is too smart to take on
additional debt, and will further enhance their own
operations. -
In my last message, it should be Sodexho Marriot Services Inc. instead of Host Marriot.
Stanizer -
CNevil, I think you are right that HM runs the
concessions. JBX probably can't get into Dodger stadium
easily, but it is probably worth a try at some of the
sports venues. The type of people who attend these
places are the target group for JBX.
Anyways, I
hope that JBX continues it's controlled expansion
towards a national chain. It's our best chance at seeing
this company go somewhere. be patient all you
longs!!
Go JBX!!
Stan -
Even though I thought JBX would be at 30 9 months
ago, I'm glad I held. It helped even out the tech
losses.
It must be CKR holders spreading the rumors.
Take a look at JBX history. They have failed at every
takeover they have ever done. Anyone heard of Chi Chi's,
Family restaurants, etc? Now that Jack Goodall and his
grandiose plans of conquering the restaurant world are
gone, JBX has focused on what they do well, JBX. Well
done Bob Nugent. I think he realizes that JBX can do
well on its' own and doesn't need to buy a dying
cause. Let's hope they stick to their expansion goals as
expressed at the shareholder meeting.
PS. Gausian,
it's incredible how your english has improved. -
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I think your Dodgers idea is terrific! But if I'm
not mistaken aren't all of the eateries at the
stadium run by Host Marriott or one of the other major
food service corporations, who in turn does deals with
the various franchise names within the stadium? -
That is what Burger king calls them.
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XTGO- thanks for the Trader Joe's tip, David.
I'll have to go to TJ's now :)
Actually, Jack
has one item that is "low" in calories and not loaded
with fat--the Fajita Pita. On the JBX website, the
Fajita Pita is relatively low in fat and has 280 or 380
calories. (Can't open their website right now for some
reason.) Perhaps JBX should restart their advertisement of
the FP as a "healthy" item, without having to develop
another item on the menu. Combo it with a salad instead
of fries? maybe a slight recipe tweak to get good
advertising numbers (i.e. grams of fat etc.)
On
another note, I hope JBX doesn't do anything with Carl's
junior. It would be bad for the stock and the company to
take on CKR.
Does anyone know how much it
would cost to convert a CJ location to a JBX location?
I suppose the cost is less, but there are still
many things that would have to remodelled...perhaps
JBX can take the Dodger stadium CJ locations. That
would be great advertising in the LA area. Maybe pass
out some new types of jack balls or other JBX stuff.
Jack baseball jerseys, pens, jack baseball
hats...whatever. It might be a good marketting strategy. The
stadium gets 2-3 million people per season (although not
all distinct).
Anyways, go
JBX!!
Stanizer -
robslik1, you aren't the shareholder who comes to
the annual meeting every year and asks why JITB
doesn't offer a veggieburger are you? It has become a
running joke, and at this last AM, CEO Nugent made a
wisecrack about it. Probably embarassed the poor
shareholder into keeping silent, because the question was not
asked this year.
Bottom line is JITB tests new
products all the time, and their research says that most
people who come to a fast food outlet don't want this
alternative. Remember, it's hard to justify putting in a
product that maybe only a few percent of their customers
might want.
I agree with you in wishing there
was this alternative, although I go to JITB for a
fast food "treat" once in a while and go elsewhere for
truly healthy food. The veggie burger product would
have to be really exceptional, have a long shelf life
and be microwaveable (is that a word?). It couldn't
go on the grill alongside other meat products,
because vegetarian purists would object to their
veggieburgers being tainted with meat juices. A decent veggie
patty in place of the meat patty could be loaded up
with cheese and mayo and still be significantly lower
in fat and healthier overall. With a fresh whole
wheat bun, lettuce and tomato, it would be pretty
good.
My favorite veggie burger is put out by Trader
Joe's, and is called "Burger Nouveau". They come frozen,
two to a package, and they taste almost as good
microwaved as baked or grilled. Very satisfying, not at all
like most soy or other veggie burgers. Their texture
is superior too, more like meat. I'd be willing to
bet that even meat eaters would accept them as an
occasional alternative. If you live in a Trader Joe's market
you've got to try them.
David
(part-time
vegetarian) -
Why not offer a meat alternative that is
microwaveable and tastes exactly like meat. I have tried the
new Gardenburger Flame Grilled veggie/soy burger and
it is identical to a char grilled burger. No
mess-just stick it in the microwave and a long shelf
life.Employees would love this product as it is clean and easy
to prepare.
Being the first with this new
breakthrough product would be excellent marketing too. - View More Messages
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