Jack in the Box looks to build off record-setting year, completing 155 new restaurant commitments in 2022
Jack in the Box Inc. (NASDAQ: JACK) today, as part of its fourth quarter earnings, announced its expectation of positive net unit growth in 2023, a sign that its growth strategies are beginning to take shape and drive results. The long-term economic proposition of a Jack in the Box restaurant is creating a resurgence of demand for growth, and current and potential franchisees are taking notice.
“We are thrilled that, in just a short couple of years, Jack in the Box is expected to take its first major step in recognizing our growth potential by turning net unit growth positive for the first time in four years,” said Darin Harris, chief executive officer. “Through rebuilding franchisee relationships, and pairing franchise and company resources to enter new markets in a position of strength, we are starting to see results – and I couldn’t be more excited about our future as a growth brand. This is only the beginning.”
In addition to restaurant growth within current core territories, Jack in the Box will also introduce the brand to customers in two brand new markets in 2023. Salt Lake City, UT, an example of a market with strong familiarity and demand for the brand, will open in early 2023 with both franchise and company-owned locations. Louisville, KY, a true “whitespace” territory in a part of the country with less proximity to existing core territories, will open later in the year. Both will be key to Jack in the Box growth, something that has eluded the brand in its recent history, as well as energizing franchisees to take similar models into more untapped territories in the future.
“We are very focused on ensuring the two new market openings in 2023 are successful for our brand, our franchisees, and most importantly, the guests we will be now serving in Salt Lake City and Louisville,” said Tim Linderman, Jack in the Box chief development officer. “Success in new markets will be key to building further excitement and momentum within our system, while gaining on our objective of having Jack in the Box operating in 40 states by 2030.”
Jack in the Box has signed 68 development agreements for a total of 267 new restaurants since officially launching its development program just over a year ago with 155 of those commitments signed within the last 12 months – setting a single-year record. In addition, Jack in the Box welcomed the first new franchisee in over a decade into its system, who recently signed development agreements to build 37 new restaurants in Baton Rouge, the Carolinas and Nashville.
“Jack in the Box franchisees are feeling as energized to grow as we have in many years,” said David Beshay, a longtime franchisee in the Jack in the Box system who operates 225 restaurants.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box®, one of the nation's largest hamburger chains with more than 2,200 restaurants across 21 states, and Del Taco®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 600 restaurants across 15 states. For more information on both brands, including franchising opportunities, visit www.jackinthebox.com and www.deltaco.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the company's brand; increased regulatory and legal complexities, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.
Vice President of Investor Relations