Jack in the Box (JACK) 9 Aug 232023 Q3 Earnings call transcript

Thank you for standing by. My name is Dina, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Jack Third Quarter 2023 Earnings Webcast. [Operator Instructions] Thank you.

Now I would like to turn the call over to Chris Brandon, Vice President, Investors Relations.

morning, good and operator, everyone. Thanks, joining We from call, results conference third appreciate quarter you our XXXX. highlighting today's With me today our are Chief Executive Officer, Financial Dawn Interim Darin Officer, Hooper. Chief Harris; and

take at which that during in non-GAAP website our remarks, Investor be we to Following may Q&A, reconciliations is the both our our refer non-GAAP Relations their analysts. Note happy provided items. discussion prepared Please to available sell-side on covering questions jackinthebox.com. we will release, refer and earnings from the to

also the will statements on We making be based reflect current forward-looking that judgments management's information future. and outlook for

detailed However, recent actual the of website. And safe operations materially Darin to the filed our most of XX-K statements information over Relations Investor release risk these consider business Harris. are in statement are expectations cautionary XX-K, to the earnings Chief be as and to like part results to because may Material documents SEC well in differ as harbor relating and public our and Officer, discussion. with the therefore, Executive most turn XX-Q risks. factors with I'd our our call We that, the from our other on in company recent available

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pillar, second driving turning to our operational Now excellence.

food improvement a year-over-year of speed and which to QX returned contributed and hours couple greater their unannounced of and the third-party again fourth tailwinds elevating Our system the of credit, laser dining in quarter-over-quarter assessed faster our our operation experience to pre-COVID reopened approach. Both trained dedication QX. standards. experience. see made has both the to improve levels. our to To execution and safety now credit operating and guest are at of so building and our evaluations their are food I simplifying doing and XX% of levels. implement for people, focus guest standards in have the on a been All service, certified, Franchisees quarter continues result consecutive system speed XX-second in operating high improvement. We of all, rooms And the to improvements strides team in new in capability transactions. of Over representing safety better franchisees very continue quarters, year-over-year in past operations we nearing over the and and we to remain

growing opportunities is positive POS fiscal end to of saving with through AI, and stack implementation selecting office will more of cost enhanced fiscal on first impact our XXXX across the begin to profits, in strategic systems restaurant our future XXXX. This the third a experience. Success restaurant create very new plus quarter on Lastly, automation and our we by areas have lead close back should track completion should guest are tech also to provider, operational focus still pillar. the modernized which

to can of advantage X identified restaurant have or maximize and operating supply potential XXXX. our new environment processes in XXX per by margin we the profitability taking with equipment, technology, enhanced annualized all We in is past initiatives result that doing we or quarters restaurant-level it the improving synergies, franchise Whether in RLM. $XX,XXX savings could of of chain are points basis approximately

realizing Our progress to savings the continues.

are rolled to in more improving see them of and these will even XX% as be we now important, beginning value easing our programs inflation hold, to have With continue evidenced We take out margins. and pipeline. sophisticated and pricing within surgical restaurant-level data system reflected Improved economics is growth franchisees now tools restaurant our pricing using our to being opportunities. our more and relationships actions with analytics positive identify for in becoming

agreements in sites development for into the and Wyoming. expanding X Montana development our in sites which development reach. franchisee first mid-XXXX, Jack decade, of with us seeing total our have launching market our course, Since of having now are there and restaurants. our new to ground, and all-important program new this now We XX along signed Arkansas, in fourth we Included over now shovels Florida, total, was in for a agreements turn brings process final pillar, and agreements new a XXX Jack are and

Taco development Our to comes commitments a Taco which both Jack Del to Del upcoming Del franchisee agreement Taco included Wyoming and from an via incremental restaurants. entry build and from refranchising, Montana

Arizona the Regarding the our first half Texas, time our Lake restaurant of and to the that Jack in of in will they record-setting image restaurant, over quarter we restaurants, for an competitors, making are thus that QX, XXXX. in this with Jack bringing look of CRAVED the a XXXX to XX in a development brand we opened of familiar, California, particular operator the has highest along in the and market within Box X conversion in City. openings our progress in open years. In first forward with Salt border cities, viewed with first swift This one X first sales. X X proven is We fiscal during far Mexico

simple night X week-over-week City commitment least and single-store and franchise new anticipate support we combination restaurant teams, operations and were we're playbook mid-June. Note and able at the developed for focuses not working operating X City, both as the X our was recruitment in restaurants. by to we second locations a top-line guest but digital, and previous which new better awareness our our activated upon Louisville. sustaining U.S. then our by our restaurant it to drive-through-only members, success first Salt our It our against maximizing also including creating prototype be record, we anticipated. with marketing end Jack. We is of inaugural market, our late created XXXX, In open XX% and sales of And well is market team in the have QX, such also record plan higher while not than of our to fiscal execute sales in only restaurant Not playbook, only market, continues brand in first fact, We guests launch phases restaurant additional it which to first implement key that the fully a which in opening this market. year, Lake opening the did in serving month company the since new our Lake base. set entering the opening at a grow to on company-owned of and operations training Salt restaurants and this than market was open in monthly concept in even marketing opening will we nor

a We for to have in we on handful ahead with on track critical on phases. years end for growth in the at gross the increasing of permitting, an and are the active this focused continuing net in openings XX guidance the X And and new occurring first construction lower value to restaurant this range nearly Net trend be restaurants fourth future. we unit our still closures reach XXXX. see currently of positive year, time while XXXX are is will the growth design or quarter in we

about Let's brand. operation to tightly to XXXX, menu and I'm excited is aligned customer value to Same-store is its proposition hours $X which was compared company X.X periods. sales pre-COVID Increased continues the levels. The the hours with needs between XX% potential as remained strong at approximately during driver, meet the our now to Del restaurants. X.X% company a Del to introduced value-driving results increasing varied grew positioned which turn strategy. key non-promotional very of getting holding to menu closer and barbell franchise platform, XXXX brand Taco in per well of growth a Under XX is during steady with Taco, growth be QX still store addition and

with a along variety added Crinkle to during Fries another a Del value barbell and deals, and it's This layer fan small of line a Cut Taco menu. value. However, at QX, Del's favorites, great consists of drink featured our we which $X

our average food polls, X.X X.X currently cards. last faster point grow punch continued digital We of limited decreased adding back with features. are members, can from from level million and vanity Taco able represents for drive branded And saw membership, to sales XX.X% frequency up Rewards and to its and features badges a surveys all be QX. Last growth tiers will Yeah! sales visits, We menu new free total very Del as earn also incremental now now engagement revamped Carnitas month, member members like Rewards quarter. channels continue across Del we we popular There XX.X%, in by time. brought million and spend. up and shareable

in Turning recruiting same-store wages. offering and expansion availability drive the focus to labor There higher is operations. a continued increases and to hours aided labor on help of by sales,

are in XXXX X launched the We XXX opened franchise demand Del XX quarter Tacos, a X of and to signed refranchised had Taco. same This within Jack proceed alone, traction Taco and we've quarters, at Del investors. of the seeing have share than incremental also refranchise we plus XX and Jack transactions first expect we proven by repurchases, asset-light make the in Taco led these of agreements a alerts accretive applying these as to more and total from been XX which valuations Del and including this healthy Development real lowest operational our as turnover our we year. franchisees, now as per up, and we program now is model. To between the execution the guests, stakeholders; operators QX, of development for all members, of our pillars, and Since in restaurants team combination has XXX Del both We are that XX focus for developers to using reduce agreements, tremendous more at of The creating for and course, store, Del in value a with have move strategic the restaurants wrap fiscal end restaurants. and year. proceeds are QX. Through

of and are strategy will your we you continue in the to are accomplishing building. I now we what growth story executing the for on areas Thank remain Dawn. the to are the we focused and we important over are trend. and call time the We turn will proud interest

consolidated in Box, was our and X% X.X% same-store with system-wide each decrease system X.X% mix in growth details X.X% of quarterly Darin, X-year of sales by pricing, X.X% of our X reviewing includes in individually, increase and increase sales I'm to our comps same-store Jack brands an basis, good performance in on was followed by X%. a of Jack's going quarter allocation. Beginning Thanks, X.X% capital franchise and of morning, same-store everyone. start consisting the a On and transactions. sales growth comps XX.X%. company-owned a growth third

execution we culturally-relevant result, check the supported consecutive the increased year-over-year And the with As of successful barbell and second the and hook average transactions effective our menu of mix our and by a marketing also down, positive shift were since overall build year our prior strategy quarter. for although seen have our messaging.

operating On room in night operations had dayparts breakfast. third chicken year-over-year. burgers, franchise from product late which leading while for are categories, increasing positive again, daypart dining now and quarter. stood have But the for All contributions including way, with posting sales the year-over-year notable positive And the we remain Box are transactions came average the most company hours, generated Additionally, operations in straight once execution, Jack the out caught up. nearly system. the and operations late improvements tailwinds night the

openings closures. in restaurants. Turning count franchise X,XXX quarter-end restaurant X to X were resulted with There restaurant of This franchise Jack a count. along

positive a fiscal year delivering XXXX reminder, the XXXX. in net be for As fiscal first since Jack time restaurant growth will

sales on Labor Food of our Moving by mix, leverage, packaging an XX.X% We margin. lower costs. Commodity price and inflation potatoes, expanded cheese company-owned by partially year. costs to to inclusive produce XXX in and primarily XXX the due sales refranchising shift basis by XXX markets, this XX.X%. performance led X.X% to was and Nashville and sales seen partially restaurant-level of a within poultry. the our a in for pork, points to inclusive with increases greatest sauces, offset percentage of is ingredient performance, the to as benefit increase of remaining basis for increases declined evolving quarter X cost Notably, fell by driven year-over-year Oregon increases of as offset Jack last basis company-owned and beverages, Oklahoma and the menu and a points positive percentage City. points price sales by in sales XX.X%, Kansas

costs the company to restaurant this to to sales prior by refranchising, XXX the partially offset X.X% of benefit due the and was partially compared higher higher costs, revenues million from sales year. Occupancy in offset and XX.X% of points utilities, to current by compared of operating XX.X% driven other operating year. The franchise leverage other basis fees of quarter However, $XX.X prior decreased year. margin inflation the XX.X% year as or Franchise-level delivery higher ago. the compared was $X.X and or increase mainly including million the flow-through was by security in million with of wage sales $XX.X a

menu mix contributed Del operating the company-owned restaurant to the X.X%. in of X.X% that $X.X driven growth XXX common the consolidated in sales quarter comps Taco transactions franchise by restaurant refranchising year. million snack included revenue XX.X% to offset pass-through Food the franchise X quarterly of Turning Taco a lower and points Labor Taco increase Taco's up due same-store driven restaurants. decreased higher continued of at most upside Del primarily Franchise-level basis a percentage same-store franchise of levels Staffing million sales The maintenance dinner. year XX%, per X.X%. XX% QX XX revenues million partially a same-store of and SG&A to quarter sales to check closures system-wide in to commodity compared basis hours wage XX or due X.X%, was The a as increased rent, System openings. in margin XX.X% comps QX. Occupancy to prior which inflation, XXX were $XX decrease was ago. XX.X%, slightly XXXX in with increases, was of by X X.X% items to of and margin offset partially Consolidated QX, approximately to transactions other or count as end million decreased packaging this to although by pricing running average as year-over-year, was price compared $X.X and for expenses primarily primarily partially franchise decline is last X.X% the and check by as percentage well sales costs were of offset results. XX.X% an rose there now X.X% of above franchise points of and sales as The consisting was to decline Del a Average Taco. area to points resulted improvements were or percentage XX.X% basis which Del of growth. Shifting by by dayparts XX.X% XX.X%, sales in in of year. our of or led now impact operating was with was opportunity. In X.X% costs. inflation. compared restaurant-level down. Del $XX.X

Note in X.X% net higher in for up share, GAAP to expense due $X.XX locations total the COLI quarter is in the to diluted which quarter EPS Operating of our adjustments that Taco adjusted versus was certain franchise was net the for $X.XX includes EBITDA $XX.X from of million, sales was year. G&A prior and impairment $X.XX the Atlanta per which $X.X EPS our million, Included prior the compared effective Oklahoma in Del compared long-term was XXXX the Excluding related $X.XX for same quarter year, within tax of quarter the third million ago. was year to restaurant-level primarily is rate rate and system-wide operating consolidated XX.X% in tax markets. Consolidated operating the The quarter and expectations. margins. EPS Jack for The a gains, for prior other to XX.X% was $XX.X the XX.X%. year. primarily

Moving allocation. to capital

we at repurchased ongoing QX, (sic) ] to share for repurchase $XX and our million, fiscal execute now million excise the authorized program. We of X.X this have currently share in Year-to-date, our year least [ million under $XX.X plan million including million tax million. Board remaining $XXX approximately repurchased buyback we $XXX During repurchases program. applicable have $XX.X part as shares

which net well quarter is million under As notes variable million comprised had we our $XXX available our as borrowing as of of Del end, credit credit, letters under capacity of of million, Taco $XXX.X facility. of funding $XX.X

Board the as Directors XX, of shareholders the of also continue XXXX $X.XX September while on our dividend investing we of on cash be to a paid Beyond XXXX. close dividends. of brands, To share per share shareholders business cash returning August X, X, of to in end, repurchases, through record that on to declared will XXXX, September

approval. subject Of course, future will Board dividends to be

of the call X in we would like from reiterate prior with earnings to items. exception expectations May guidance, our our For

XX remains XXXX, XX restaurants from up XXX as fiscal to First, of fiscal XX Del not which impact the guidance we same our $X.XX to refranchise guidance to XXXX, $X.XX our now restaurants. will EPS of previous stated. in previously operating to Taco This for plan

Second, we XXXX. fiscal at in plan to least million share repurchases execute now $XX in

do the over commentary, fourth quarter quarterly last the want environment In typically given additional fourth we do operating quarter, not provide While the provide on to year. we some the color we last to the are increases likely industry case beginning is lap with hours stronger improvements some price in taken year, as in as of operations. which of well others the our

Additionally, we would also from like to remind rolling you that year. X over we prior will items be the

open on for we summary, of First, than brands. And we Jack the recur are And recall, are to experienced another of line you Both feel on year Combos pleased settlement. accelerated higher what and to of take fundamentals normal remainder legal of robust we both Taco by early that, QX due beginning last will we'd and fees year. the Operator, you this value, $X.XX in year. second, of benefited track to some strong. In in QX they Thank please the free behalf delivered Q&A. have to teams some prior happy Del doing will our and the items are for questions. leaning chicken-related for quarter are line be operating with to remained received the our our which very closures, performance top level long-term with into That the in we said, Pack EPS Jack year. a termination not these

question Brian first Oppenheimer. Your comes Bittner, from Instructions] [Operator

strong quarter. on the Congratulations

charge guidance range quarter has have of have an Street. shows consensus strong talked consensus very a lot we has the those but last despite implication And of for fourth have think kind fourth was I the about your It all that a but below model. tracking the us expectations none our You labs were an the impairment EPS well underlying you full you from above with third above I refranchising, was year, And that in that modeling. business the quarter. $X.XX quarter know well fact EPS. It forecast, that year you the the for a had did well that's of

the considered, to EPS So business. only have in to all things pretty a the get is fourth underlying implied range deterioration the quarter to measurable way

the can So little of? maybe coming guidance be provide would that fourth you question there [ perhaps on aware Or all costs bit ]? Is the not is helpful. I your in tilting that conservative? we're guess, is, quarter Any it for fourth some quarter the color is

several to fees I consider, there benefit that you settlement. my Yes, a to think to recurring received mentioned are a non-recurring QX of prepared outsized termination and need some and won't which closures then that's year that be I early chicken factors one relates in that remarks, that last in we related accelerated and

As record noted, $X.XX did we you impairment. of

to in due is in to as The increased accelerated strong take the refranchising development a able some industry, I the think related other items received sign development pipeline we've that others year our the to acceleration refranchising in into it we've going to our took we're consideration interest our to like we multiples we've in those to transactions. And that of ago. peak pricing lapping with agreements been the lastly, be addition

strongest QX of quarter of And over operations our for in or saw an over year. performing In to going recovery be price XXX hours rolling off from just about we're last rolling and a we or an pricing basis points And brands of the uptick increase really was standpoint, both we're last that. then rolling lastly, in fact, QX. year,

year. when the consideration, for all So into reaffirming guidance EPS we're operating take that the you

capturing good Dawn job We is well. that of feel the business our generally I sentiment. Brian, did performing So extremely a think

as we've to in been guiding figure for fourth events. out one-time most You're what because will this seeing it quarter quarter-after-quarter. trying All look quarter such industry overcoming the like conservatively And We the quarter. anticipate into fourth that fourth of these price. continuing of us the year

could That with makes Darin, sense. you. follow-up I just, if And

is remarks made little in it an comment the unpack value you the a bit? the seeing that You in comment important around incrementally you that comments your causing as just Is your that's interesting believe a add anything becoming relates much value? else on becoming Are prepared can more to that driving you value macro macro? something you comment Can for vital or business. to to

is us, business between and the noticing industry driving within for value what balancing is think that within I transactions. we're our critical premium to and

just we're closer shift. yet. We're shifted that that so anything small not paying And attention, has anticipating

value more the our And of year so items focused balancing through of with half promotional back the we're some opportunities.

Your Guggenheim comes question Francfort, Securities. from next Gregory

by pieces could Maybe, fruit low-hanging were what are Darin, of pricing, that X first about months you biggest around going continued forward? forward, I the think the address think do you opportunity? maybe outsize low-hanging ago, be from you may and were a pricing fruits you speaking as market. X, industry underprice maybe just the think if two, rightsizing going we still you wondering given And And talking here or think that should industry I'm you about

Yes.

us, and that opportunity for -- X a at have business. to think late digital about I X% good of we a continues night daypart alone increase grow XX% comp. digital, continue to have I areas to the from business And to that are think we Those continue think we growing. I of to really And also substantial feel breakfast daypart. perform in over It digital part standpoint. a little saw be the to We continues then us. an XX% our for growth leading the

business different delivery So overall perform modes. and daypart both our we're seeing across

enable in opportunities stores and is, internal menu. whole other on across our implemented pick pricing, specific to thing seeing tools go analytics what with discipline unique and we've us The we're find that regions,

And store-by-store. surgical more focused approach we're we a opportunities on and look so than And at approach. blanket market-by-market those a

comes next Brian Sandler. Your question Mullan, from Piper

you Del to us so throughout year. your you current the to great evolve just now thinking precise, now. around fiscal at would into understand hard give on I how to what the system fiscal of see this on expect this guardrails end We process. progressing visibility Taco look expect the 'XX? probably just great. it any It's question be be Can ranges to it like have should kind you look a of but or how Just quickly refranchising it's

guidance in We'll as seeing for continue Jack we progress part guidance our on Del We'll focus putting and of this for into demand was year. getting head this our at $XX going the at agreements overall, thesis Jack. you're Del. $XXX our 'XX. make transaction, hands our Taco million knew into pent-up operators. substantial time. was not But operators best million we of to this That of We're and development to restaurants us revise incremental Yes, the there

our multiple So repurchases. overall, what we're These to we're you getting. based the that can share valuations up see definitely upon are is that transactions accretive continuing

on we we'll so strategy have And execute in 'XX. aggressively to continue that as as

TD Next question Cowen. Andrew is from Charles,

value the Darin, a X-part I on questions prioritization. have

forward? should guys And is through? hook about of that think lean timeframe to traction, to digital build [ So and do first, personalized you or you that of menu some is you XXXX? the I of you planned have, item value targeted given know and planning how on that the more the going this about value. going a we ] is preferred previously into Hero early Jack the guys offer be to more fiscal The I launching is preferred kind value of you look then are in talked but mean, be launch, at to the the secondly, the that point So offerings? value Pack going just something on route also is $X way route more as format value curious

value, what what get is So pay. value related think I for you to you

And so channel. we look at

and more So we're on digital, with our our aggressive discounting. offers value

would we the we test Pack offering. similar menu that Deals items As now it's also will Jack's are traffic Jack that $X Very to or in we that and feel about think about good items, drive something to from have they've and similar able XXXX. done were for we're that there we rollout Del Under would learn you see XX to what what later replicating We that $X. our with Taco at into

have we Jack didn't maybe levers play So in value multiple now previously. have that to

to time. And so focus in right channels then items as on we And anticipate as rolling the menu And those we're related a far XXXX. Hero that. at or that the item few we right item, The different out that testing

Next from comes from question David Baird. Tarantino

a market. I you're but I than pretty you higher which I details you've market, on normally Lake performance mentioned in -- you City, expect is seeing expect new could ever a was question, volumes lot the new about know that are a wondering share in seems what you don't Darin, in you what My the encouraging. Salt more shared think if

you return details have for might towards? that tracking follow-up. volumes So a like And I wondering what was would if are share more a what a it point? data sounds on could mean the And profile, because good I pretty early

late record just can for restaurant we're our but encouraging We're XX% digital previous volume for of for but We're track on store any open starting brand Yes. is monthly that, an We're if and what's system, openings the this the them. of sales, our higher channel. is our the all-time I quote And be, yet. one you, to open store about tell to new sales. to not night at not than this going in not highest markets. implementing And playbook exact

franchise What's market. we is 'XX to about more operator X City the we're planned media X just about of feel year And Lake good how fiscal more feel have openings implemented. the in we to exciting good starting Salt 'XX. executed. We and in the even that another deliver year playbook fiscal in he's there, about for point getting So the now we

we're we other the what by seeing We're the encouraged unit on outperform what with we're X beyond comment And the so system average. within didn't opening. them openings seeing And system. that, definitely is

CRAVED image. to the new on so And we're we especially with something, think

to restaurant how context newer so some us Lake markets, new the just on done versus create did on playbook, Salt in you're And maybe around much you elaborate give just before on Great. what you excitement what going market? can to this to in City you've

are executing Overall, operations we to sure level. Yes. highest at -- the from want make

a launch staff our in for very high months We've multiple level. being we to trained ready So team at market. the

And so of at with early our stage marketing and then kicked marketing. that, into the we we're

locally market social of and to Box in a lot entering. campaign. overall simplifying then operations, after within point sure they we're where the to was awareness now launch that started making through just in the communicating within Jack about we're And we getting the order, our ready were So digital And channels.

Dennis question Geiger, UBS. Next is from

Great.

of any peers? into considerations if some next good today? of your just if touch pressures development now from on on development, environment All but to a sentiment that against you to hearing or development curious and talk As franchisee there's as Darin? we're right across any thoughts you about to And particularly issues early little can industry bit positive, the timing sounds high-level any macro year's restaurant maybe updates growth, make it continue there, progress more kind relates

we're good from franchise excited. feeling left coming We conference a just franchisees Their Yes, back. the brand standpoint. where a are are about where especially really top-line is, margins

with corporate happened margins You points basis side, XXX what's the see on year-over-year. improving our

the XX% Our taking to the XXX those we're drive they're initiatives margin of though of basis out starting back year, And hold not hold. with focus, half rolled anticipate to even in those we take yet, initiatives. point the

most sentiment come permitting, decade. the or is standpoint about back That's grow. talking you're in now We So to continues have where construction. development, last our franchisee design that very in from over grown restaurants That's quarter. pipeline positive. And the I to to a our since XX well think

sign franchisees. side. new to That's continue Jack the just We on

same the having we're side, Del thing. the On

as a our a Taco and have substantial also was with signed Jack of in franchisees. agreements refranchising that's that franchisees of of And part and result Del strategy. the number Box We

in The So as starting hold. beginning we about in our shovels development is comments, putting take to the it's the happen. ground, sentiment and is that's pipeline to said positive. And now

on earlier. if That's just a I could great. And Brian's question follow-up have quick

to know seen. spoke of anything changes to customers? of like add down. you behaviors, out, demographic items has you on income Darin. call just think a ticket I industry anything But that? be may if a maybe extent, number behavior the from to continuation But it to per what That large what kind there's you're mentioned the I you of and seeing any other

Jack business, look coming the we're best our income. side when of On all the across the performance deciles, income we of higher from seeing the

what is of premium strategy Some that promoting a we've and been from our standpoint.

we're response is did a and balance Ryan the the Some And then a -- since customer across joined seeing since just improvement research of sales we're segmentation base just it last and all balanced identified myself we that we the is targeted thing getting company. deciles.

lower at we're is, both opportunity seeing seeing Del value change demographics we're the much we taken to pretty pride, there. look our with to continue income But income our Taco some we've opportunity we guests guests. businesses. to across all We of to On value But levels. again overall, within overall, tried our especially offerings drive as have so because with our income drive see so Del lower business, some balanced business some what a strength

Next from question is Jefferies. from Alex Slagle

have those see refranchising or be incremental wanted thoughts on wanted going this EPS neutral to an I if clarify Are any EPS the actions. year EBITDA dilutive? potential if to you get or to idea could accretive Just on to to that, for you it forward?

Yes.

look these repurchases. earnings upon accretive support think you to presentation help if our back our transactions I that based will are share that to ICR

also driving we but them we're in so we're we're losing taking And royalties, when EBITDA, at -- obviously, decent valuations.

will And be repurchases, these through accretive. that help so our upping share

the remedy are performance could to of issues? markets? plans the provide you What Atlanta, Taco Del or And And challenges readjust those additional color those in in on then Okay. some Oklahoma? sort

Yes.

have -- have at industry few have many a with we that may changes, of it's we leadership in times challenges think us if some within the I markets operations.

with plan help improve markets them. in turn around those So to and we went a

We playbook implemented in to have over and in seeing Kansas a we Jack at Kansas XX% City comps, and XX% comps City markets couple of those in We're City. double-digit comps Oklahoma that Kansas and Oklahoma, Oklahoma. in a close

would and focus starts margin the and the holds staffing then eventually in training Atlanta Oklahoma. on we're and for say, playbook and the Taco, business market improvement. true eventually and I starting to implementing same Del So with the it in

Next, Brian Harbour, Stanley. Morgan

Yes.

of the your fourth sense but up my topics? any in Do you anything was on comments guide, interest the of Just SG&A, following These second permitting? mid-range you'll on rates just not low sentiment new are comments annual Has question. that? changed real just so And franchisee estate on with have availability, those question newer issues, quarter. of some the we kind then any on Just be think end?

faced get we've development our bit peers the occur of with to it industry, the heard within to I you've permitting a what think on little a permitting I standpoint. and time think with challenges all takes

So we've our pipeline seen some lengthen. of

development, our thing. face in like Construction standpoint from also same little a think I a just more the is industry bit of challenging. labor we labor

stopping than we've pipeline. our just where XX are in had the over made the It's I those which more a pipeline, lengthening so And decade. restaurants building in now not pipeline. we have the is earlier That's is, the of comment

And get continue with. them now with so a we fill sites work to under construction. pipeline eventually to up we'll And and have that

it's on say I going to the and and EPS, just our guidance, operating $X.XX. reiterating $X.XX we're between we're And think

from Next from question Jon Citi. comes Tower

year get to curious, you or promo be in leading a lapping, in have really in brand this wanted tie-ins Dogg the a And/or just been I it on sales for what like that appeared to Box And run driving Jack Mobile these Mint from So the promotion celebrity deals guys brand. to meal just of the helped and quite zero Snoop future or partnerships of how for plan on the thinking your about then But some way a having say, core comp the so great been brand lift that bit? having home looked into at check far more there's you awareness. I'm company? how you're the this plans at

Yes.

that make celebrity. think to focus continue these makes you're As where seeing own lot the the strategy, on promotions. here partner Box, key friends and when in with And is partnerships I to his it do elevating where do our sense. his and of a character as And continue to his we'll sense. Jack Box him we'll marketing presence part the of Overall, they Jack

paying going and just are up they ask, it just them signing structured is say, or whatever than, normal celebrity fixed to differently a fee annually? a was I

Yes, of do We type definitely. different partnerships.

us some was that We because got of benefit from our relationship. brands. that benefited Reynolds Mobile Mint Mint the of I advertising. celebrity interesting, our the Ryan both promotion, With endorsement Mobile think benefit of of got

situation. in we that won both So

our true has a for long partnership with of I Snoop fan think brand. been And the same time Snoop. holds the

fans us Meals, with night and he so wanted Munchie late especially for have promotion, business. our this participate night to a in which we relaunched And lot our of late when we

Capital from comes Next Chris question Carril, RBC Markets.

multi-year the maybe to a considering maybe just comparisons. you us sales the by range commentary up trends on over XQ the expand course the that bit Maybe saw same-store the help and as implied the in But trends third full saw XQ mean, And we're you following if wide the just about I'm around saw XQ? then the guide, the on you of on curious So can quarter. more they the thinking what Jack particular, the you I what for versus the -- exited quarter? looking you the throughout if for at as again quarter? XXXX, you third accelerated expand could

QX, I our Throughout did windows. Yes. we it think a of what continue we And lot through XX. X period saw was sales promotional with improve period from to

that. And do to we'll continue so

the QX into points. now price. coming think some you we heavy are be to stack, XX And going quarter, in geometric I then accelerated lapping our basis look it fourth at X-year

the just So is how overall, we also price momentum overall, we the about sales. good in business It's and feel hours now But do operation. of that forecast and sustaining. overcoming business our

comes from from Bernstein Barclays. question Jeffrey Next

Great. I Jack talk I the One, was you hoping just had Box. about X questions. at traffic could bit in a the little

comments cautious said in bit you like I little eased the I the quarter. quarter some know just fourth from think the third a compares it And the quarter. second into about going made you

key on you then front? the wondering that positive would thoughts I think what And be offer had follow-up. side? the that So when can on some drivers can if one I'm you you traffic And turn just to

Yes.

for throughout up, think night It held traffic we accelerated. up the most steady the think late on was transactions X.X%. And part, I I quarter. were

And so obviously, year-over-year.

that And improve. to continues so

our our in I lunch transactions to within think success is for and us continuing driving find opportunity area. breakfast that daypart value and daypart

areas. the out sales define are night and breakfast however It of late those you. the Got break important you value? And like you seems mix do

maybe anticipating? benchmark were of Just trying sense to where you're for are get you before you or a what where a now,

through breakfast why we our breakfast daypart. is, the bit reason most And price franchisees of don't. we No, the I had about probably speak at acceleration little a

opportunity there's daypart. at value recapture we to for us So some some know breakfast the

speak so breakfast value component. of And I during why the that's

call. and all disconnect. Thank that for today's now Ladies you gentlemen, concludes you And joining. may