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Jack in the Box Inc. Message Board

  • pabreslin pabreslin Apr 16, 2000 3:56 PM Flag


    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
    They project 3 to 5 year price between $40 and

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    • 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

    • In my last message, it should be Sodexho Marriot Services Inc. instead of Host Marriot.


    • 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

      Go JBX!!


    • Even though I thought JBX would be at 30 9 months
      ago, I'm glad I held. It helped even out the tech
      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.

    • 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.

    • 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.)

      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


    • 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

      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.



    • 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.

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