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How Did Jack In The Box Report Its Best Quarter In Nearly 30 Years?

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How Did Jack In The Box Report Its Best Quarter In Nearly 30 Years?

Restaurant chain Jack in the Box Inc. (NASDAQ: JACK) reported in February its best quarterly performance in more than 27 years. This can be attributed to management's quick action in the early stages of the COVID-19 pandemic, Jack in the Box CEO Darin Harris said on CNBC's "Squawk Box."

What Happened: Jack in the Box's management "made the right changes early" in the pandemic to focus on safety and off-premise dining options. Coupled with product innovation to help support sales, Jack in the Box noticed consumers were upgrading to more premium items.

Digital sales have now doubled in the first quarter on a year-over-year basis to account for nearly 7% of all sales, the CEO said.

Related Link: Recap: Jack In The Box Q1 Earnings

Why It's Important: Management is looking to leverage recent momentum to focus on expanding its store count nationwide with the relaunch of a franchise redevelopment initiative. The company has a path to growth because it has now shown interested parties it has a business model that is "pandemic resistant."

So far, Jack in the Box is seeing strong interest from potential franchisees that work with other brands or are already within the Jack in the Box ecosystem.

The company wants to expand nationwide from its existing footprint of 21 states and there is a path to add 1,200 new locations within markets it already operates in, the CEO said.

What's Next: Jack in the Box appointed Ryan Ostrom as chief marketing officer in late January and he will be tasked with emphasizing how the Jack in the Box brand stands out among its rivals and how to take advantage of digital trends, the CEO said.

(Photo: Jack in the Box)

 

 

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