Stock Research and Analysis

by Morningstar Equity Analysts
Famed for its burgers and for pioneering the drive-through concept within the fast-food hamburger industry, Jack in the Box today faces a hard-fought battle in the competition for market share within the burger and sandwich quick service restaurant,  Read more 

Bulls Say

With a presence in just 21 states, the Jack in the Box chain has ample opportunities to expand.
As a means to expand into other markets, Qdoba incentivizes franchisees by providing lower royalty rates upfront, and as the units mature, they revert back to higher rates, providing the firm with a more stabilized revenue stream.
Re-imaging efforts have freshened the look at the firm's Jack in the Box locations, which may foster a better experience for consumers and higher traffic for the firm. Read more 

Bears Say

The quick-service restaurant industry is intensely competitive, marked by a history of price wars. Switching costs are virtually nonexistent.
Jack in the Box and its franchisees must contend with a difficult consumer environment, heavy promotional activity, minimum-wage hikes, and volatile commodity costs. Tighter credit markets could make it more difficult for franchisees to remodel existing locations and build new restaurants.
We expect quick-service hamburger restaurant chains will increasingly compete for market share. Many rivals, including Burger King, Sonic, and CKE Restaurants, also target frequent fast-food eaters with indulgent menu items. Read more 

Management

We view Jack in the Box's stewardship as standard. The firm is led by its chairman and CEO Linda Lang, who has served in various executive roles with the firm during her 25-year tenure. Lang is surrounded by a well-versed cast of executives, four of   Read more 

Profile

The firm operates and franchises Jack in the Box quick-service restaurants and Qdoba Mexican Grill fast-casual restaurants. It generates revenue through franchise royalties,  Read more 

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