Jack in the Box (JACK) 20 Nov 242024 Q4 Earnings call transcript

Good day everyone and welcome to the JACK Fourth Quarter and Full Year 2024 Earnings Webcast. At this time, I would like to hand the call over to Mr. Chris Brandon. Please go ahead, sir.

Thanks, operator, and good afternoon, everyone. today's fiscal highlighting year joining fourth from you and quarter XXXX. appreciate conference results call our We With me our today Harris; Hooper. our are our Chief Financial Brian Executive Officer, Scott; and Interim Dawn Chief CFO, Officer, Darin

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

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

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

key long-term relationships. With were in business. notable with macro efforts XXXX I battled tough very this progress many guests addition to on to during with sustained cost to at franchise build of to and our want Thank ambitions XX% are our economics, a Lance serving report our environment Tucker, over a thank and strategy refranchising unit acclimated executing to our decade leadership to Del take and whom that the brought digital, a believe look importantly, by growth. accelerate you, on environment building time market new first brand There related lastly, restaurant to the inflation making really Most brands, digital am reimages; the connect results of their to company outperformance franchisees beginning achieved I of a unit third-party asset-light now net Chris. deliver teams, California. Entering our and an for our new sales, will the year, growth in we at plan related openings thrilled through restaurants progress growth rollout, to POS to adapting initiatives, In our results. the our said, in start restaurant both both and opening growing digital, in XXXX, business for CFO, net emerged for with of transformation owned; Taco, and value. continue industry, familiar Lance new the Jack the pipeline; We with about new fiscal the sales and and that and Lance restaurant and beyond. significant line on with the the at and take to be leadership headwinds teams ability Box, industry number milestones new sales from top dedication shareholder including shape XXXX, restaurant markets; team will throughout a we to in new the and unit positive to in challenges making strongly largest hiring that am plus I recent in encouraged new the managing quickly through our show back and terrific face results and minimum in brand. let's pressures worked progress increased to and in get our is our will he and past wages particularly XXXX, with significant and the and franchisees several year years growth, restaurant Jack new the briefly

technology our modernizing are XX% Our XXXX. January, and contributing digital now advancing last restaurant becoming digital business investments objectives toward capabilities by including a in we the shared ambition

have our for end new on our Jack teams seamless nearly to XXX rollout. include by XXXX, thanks this the efforts in huge Box of kiosk calendar tremendous in and will capabilities. of a flip We a restaurants the extend I all want which making technology POS franchisees to the

double-digit a check, visibility. early by average Although upsell helped new and it we are kiosk innings is capabilities, using increase the experiencing menu in

and can starting now this efficiencies. are freestanding to additional test sales labor to and drive kiosks see how We are excited

network implementation, added begin testing the this kiosks. to our all restaurants New year, POS plus to capability enabled us

promotions for of over including also the ordering, us at With iOS quarter of personalized fourth and POS an acquisition our allow improved XX%, will Jack sales, combination digital speed of new with to members. app loyalty new launched benefits, base. and immediate growing experience, user incremental deliver the our loyalty improve the our and Jack We accelerated during guest offers loyalty app program to dramatically to now

over sales total and to quarter XX% business to First-party digital grow, at XX% third-party in continues by grow and consistently now digits. higher up nearly year continue high-single year was X our of

over First-party also saw weeks. last record-setting sales X the

and launch a in efficient digital strong new guests can upcoming digital reaching mobile incremental which us app loyalty Android this Our more ordering platform. the this contribution web is and continue year that of leading membership sales growing are our and a total investments gives with for expected to to and a confidence progress growing make sales makes

attacked $X increased in our menu improvement in drove we quarter, value resulted check backdrop permanent a everyday our of macro continue part Now expand. will evolve and message per will and remain aggressively to Under This ticket. year-over-year which items in fourth average the an and and the highlighted by platform, Munchies

and our the Tacos, Chicken the Two focus by and successful. Chimis our Monster in improved Waffle have supported product Spicy tie-in. Breakfast featured strong quarter, Scrambler of LTOs and we $X the the recent partnership saw Sticks average Deadpool a supported Our including as check news value quarter permanent through been Bonus sandwiches. and fourth Early sticks French our with on toast made Chicken and continued by for has which strips, Jack Mini which in Wolverine and we LTOs

We breakfast by and as followed window, in breakfast our value for breakfast late-night see streak highlighted much-improved but by this direction. I'm daypart daypart. a $X every to meals to moving encouraged performer the Jacks. will Two The closely continued dinner feature $X its right continue our best daypart in

fourth Holes, for reach premium pleased well the to Tiny we executing positive Look to transaction start am as us continue I Shakes momentum, the earlier, X% value to currently Biscoff are with sales. value, and Tacos, and same-store about with sales XXXX. introduction emphasis Birria stated year and innovation the innovation running our Donut I on both at and the to guest our fiscal Sourdough of exit This Jack. with as helped quarter and us as quarter date with Smashed first digital, As with

will Meals $X. also with Munchies our breakfast, Under have $X We support both as value and and we

digital LTO. Shifting long-term primary are will and shareholder will activity, fan drive value. via wedges currently favorites growth, initiative as aggressive unit our offers first-and and potato our to we with third-party to drive We we doing back bring

XXX later this and our on for current X year. in experience the We Florida the to part new special and with restaurant these on certainly terrific am the XXXX, are our now in agreement brand the and which full is kitchen of Chicago second year. hard commitments, QX, be up locations our addition our ensure but first us excited locations teams Chicago also entry Jack This, X development will in for our to to first into markets. cloud X franchise XXX agreements our restaurant in ground for a for opening location we I working test, to signed up the incremental at first company-owned of cut running, in are this quarter of sets a impression year ribbon

a new signed just to our development open join year, our highlight whitespace XX saw momentum were new of performance enter we in and markets. agreements in week territories. XX%, completed a completing restaurants X we prior new second this And to market recently by we restaurants openings market gross growth and addition, XXXX, Michigan. in Mexico, with commitments to Restaurant Detroit, new sustained efforts agreement our in X new where year In restaurant both openings more a than increased in franchise major

core to now AUVs, with New both restaurants in year. of outperform markets, new restaurants territories the over over new a in open City opened and XX and $XX,XXX continue XXXX, fiscal in Salt restaurants X system weekly collectively achieve X our and to in for Lake continued

in has while Chihuahua averaging with full Our a XX,XXX restaurants early, X market, first during Louisville nearly Mexico, nicely the performance our sustaining are still year our X and restaurants in week, Box than better since pay seeing Jack and franchises the that focus Bringing been our major are new the expected. team for beginning, off. performing a in we into focus are

to new system, the the XX brand's in have We added most history. franchisees our

We to story, are Jack moment new ahead long-term operators is have thrilled during growth this which these our schedule. key of for join currently

we participate have support these some a our and program. While sales we over million [ on platform, This a basis our reimage performance multiyear from to now XX the capital ran to has XX design in XX% the and start, restaurants same-store historically in we and lift. stage, progress. beginning have reimage reimages, it's are providing completed the including Crave is have ] remodels We've program, for with in committed our look $XX updates which forward in to still more the see sites now of requests great approved design, future permitting early to a and XXXX XXX incentive we of our future, industrial received, the around

initiatives company-owned and continue restaurant and out, margins believe we level franchisee will both Our improvement improve. margin roll our to

other benefit the the finalizing quality digital approach a will margins. back-to-basics be cost and experience. to oil and guest in and savings new definitely ABXXXX continue will include the also frictionless product management, pressures offset initiatives, and and implementation, inventory believe to more a beverage we are on level their our structure focused we that organizational We of continued restaurant improve provider are will which will experience pickup management, equipment generate equipment These process contract XXXX, cost our facing. In update help operational through with significant

will believe and for our all make variety, satisfaction. and we will digital to orders. absolutely a will expect more deliver better will valuable of overall the this with these speed drive-thru, the all-day at on everyday guest We great And especially an when couple experience future you better and have tasting guests guests. Jack alerts, lead food guest our reduce to Our accuracy we obsession it menu this and

turn by research brand first years. progress in study team this and and business, I our Now segmentation The leadership helped X Taco. there transform to want guest to is work making to Del that's

segmentation this to We will aligns work. be enhancing calendar media and marketing the that

focus reporting time. new and in a will grab rebuilding launched demands #X share to meet and But system to remainder forward and my brand We beyond. The to the the team can part Very, initiative hard this performance, yesterday. wide transformation very excited and this and After offering feedback to been to the on the and is compete see from performs positioning the year bottom being a operators, brand menu we successful projects from line I've the pipeline term of how for many player. of innovation barbell takes that made. on towards guests. the the to this of both value speed, I improvements throughout support career, working progress improved positive top premium demonstrating test look our report long

fundamental seen in by led and that take will For of optimistic value quarters, improved our that expanding kiosks, we XXXX, improvement rollout may now we sequential media XX% from begin focus in be an where XXX in a example, our orders. time kiosk I the additional several improvements for to on first shape. see to am by Innovation transactions check starting XX to saw XXXX, the lift average have of XX% installed freestanding planned the calendar, with end demonstrating

we a will something have test. and ordering brand occasion catering, new currently We representing under add

to making and margin We will at will on the will line. I'd cost the initiatives, And similar on asset-like rewards also franchised. to those like Jack the Box, Yeah! bottom Taco at saving progress we in XX% Del up now focus are help and running business, we program. an Del evolve dramatically as note scalable that our

once former to excited very are the that within gain holds, to opportunity opportunity franchisees And to anticipate up and industry. delivering outstanding operating stepping his wish and achieving our to closing, moment this for with Lance's Box take a for category return for be Brian to Hooper Dawn call Del towards I year sustained of what CFO Brian. share. In ambitions incredible his new between and time grow like the represents to I'd turn this about thank to now again him XXXX to serve take like also Our value I'd progress Jack an company the in Interim well our in now his now on start as long-term shareholders. I'll over future mid-January. and and thank to

price. offset fourth with mix, and franchise company-owned Thanks, decrease good provide on in X.X%. same-store our everyone. consolidated XXXX brands result afternoon, reviewing will the in Jack our details Darin, by with X.X%, down X in partially and lower quarter a and and the X% negative begin a This system then sales Beginning declined our comps by guidance. transactions increase and of results included performance comps I'll individually, XXXX X.X% Box, by

delivery the are and higher signs help from We restaurant mobile kiosk tests will continue and increases early brands, ultimately in and average which drive our efficiencies. channels at by to excited ticket drive both

in and achieving ambition as Our work of marketing our paying channels. are ongoing through we investments off digital of technology sales towards XX%

opened to the restaurant quarter. count. XX Turning in restaurants We

year. For XX number Jack over the resulting the along highest year, positive net restaurant delivering in ended decade, the closures, with with the there restaurants. in restaurant openings, growth XX year Jack full were X,XXX a for We

to percentage the leverage. commodity well $XX.X mentioned level X% of increased costs income. negative in pipeline decreased and in driven of over by driven to which cost change. company-owned in certain to are The dollar to XX Occupancy of increased lower increases. Food primarily a the a fees, exciting period from company-owned for increase recently deals with for Labor as basis and restaurant we of level by wages margin inflation lower implementing due with an mix inflation declined increases Our XX.X%. margin tracking XXX revenues, wage and XX.X% continues sales a higher compared XX% packaging mainly our along approximately increases announced was pipeline points million, example as company-owned a includes year-over-year of year step-up openings operating Chicago other basis and sales quarter XXX to same-store and million, development an sales price Jack by minimum franchise ABXXXX, and new the or points XX.X% sales as in Franchise franchise sales driven sales The margin early of franchise unfavorable from and expanding law, decrease sales, a XXXX. same-store points during basis percentage in $XX.X lower costs Darin grow, was Detroit, earlier. basis points California's percentage along ago. cost, restaurant-level of XX.X%. to by partly exceeding to XX.X%, XXX termination another XX.X%, An was lease lower by or costs termination decrease offset IT other wage support

and decrease consisting of transactions declined increase. X.X% same-store system This offset in sales X.X%. a company-owned mix, franchise an X.X%, driven comps decline down partially was an unfavorable price by Del by Taco, comps For and down X%

X% change XX%, offsetting to primarily other restaurant packaging menu price restaurant Labor basis due increased and offset than and inflationary openings For driven wages year, prior points the a year there decrease Del restaurant Taco commodity basis of the passthrough and due decrease prior inflation. margin XX.X% approximately and Occupancy refranchising partially driven about to franchise higher from full $X in X.X% XX% count partially compared IT new fees. to primarily minimum refranchising by inflation, XXX level transactions. by declines, was decreased was by percentage with from The royalties to restaurant costs. year. wage other and in increases price California costs XX in to million, marketing closures. costs restaurant level the of Franchise XXX. by increases XX.X% the operating ended This by increased million, maintenance, rent XX.X% increased increases transaction additional regulation. driven the XXX primarily margin to XX.X%, were in Taco dollar by basis higher wage compared XX.X%, a to and impact primarily costs, was was or Del year. primarily IT more XX costs margin mix. Food XXX the restaurant the declined points of driven and utilities, offset revenues, and or the $X.X The points expenses,

life $XX our $XX.X a $X or million, million value gains well as insurance surrender or of benefit expenses. $X the revenues, consolidated to policies Moving to operating quarter decrease compared compensation, was of company-owned the in current SG&A and for drivers fourth cash as The legal, as a million from XX.X% compensation, our decreases share-based year million, the year incentive-based other were on results. biggest ago. lower and of X.X%

decrease gains, COLI million, system-wide primarily in year. the $X.XX sales. certain EBITDA which share, to lower total and quarter the prior expenses, was along G&A. GAAP the $XX.X $XX.X Del impacts marketing year, share diluted earnings the Operating the by versus $X.XX $X.XX the with was sales, due quarter, refranchising $XX.X net per in adjustments, compared company-owned of for partially the from to Consolidated per prior offset million the for Excluding $X.XX was G&A includes was prior in from down the million, adjusted or earnings year. Taco in X.X%

million non-GAAP the periods rate, the effective million. was that quarter. compared million $XX.X was differed year operating payments for nontaxable year. Our XX.X%, from sale to and quarter in effective $XX year for by COLI restaurants, the for EPS the full fiscal offset operations such to due muted quarter for were fiscal tax full The deferred company-operated the into of million Cash were flow years. The was rate the fourth litigation as year well from fiscal partially a nondeductible primarily prior XX.X% of to The XXXX statutory rate rate tax payment. from was $XX both $XX.X settlement income tax XX.X% flow in full for goodwill related XX.X% operating as tax of cash the and tax in for the part fiscal quarter impact the 'XX, gains

and for included for existing initiatives, year, remodeling of restaurants. were our the and in expenditures technology digital and restaurants, investments million $XXX.X increased development company quarter capital the and full new $XX.X Our of million

investing continues November returning declared share Directors Board initiatives, on growth also to on share plan our Accordingly, dividends per shares allocation in while through and long-term to cash XX, approximately and shareholders XX. of our including first be focus capital for paid restaurant Our we on $X.XX during to And repurchased strategy, technology repurchases. our cash $XX million. a of XXX,XXX QX, selective dividend December

For year, for X.X repurchased shares million we the $XX million. approximately full

balance of million $XXX As $XX.X of our the Board-authorized program. an cash ended unrestricted under we year repurchase million. had remaining year-end, We with share

capacity had also We million. available of borrowing $XXX.X

leverage Our with was X.Xx. total debt billion, our at year-end to $X.X debt at net ratio adjusted EBITDA

million of $XX XXXX. of I'll and million; $XXX to $XXX approximately consolidated Lastly, are of we expecting of basis, million depreciation EPS and On million million; outlook capital of amortization $XX million; $X.XX current the repurchases to tax million SG&A $XXX million; approximately EPS cover following: adjusted EBITDA of rate expenses share expenditures XX.X%; a operating $XXX $XXX for of $XX our $XXX $X.XX. million; to to operating to

gross XX ABXXXX margin reflects following: segment, to the full low-single-digit of XX in Jack impact openings; expecting to and For of commodity XX%. and we of to assumes of restaurant company-owned XX% sales Box to increases franchise-level which year restaurant-level margin XX%, up inflation; XX% wage the flat the the same-store X%; are

process restaurant flat and of to segment, XX%. I to we the mid-single-digit budget XXXX from margins regarding of Part efforts restaurant-level achieving our Taco here for impact same-store gross ABXXXX guidance of guidance. margin coming our completion Del X%; at Jack This provide framework commodity refresh full reflects assumes the franchise-level X% and ambitions. like final long-term company-owned which would are top the path to some priorities the expecting openings; inflation; approximately of my year. the XX XXXX following: and of to increases of XX%, down established to this our XX year context included additional our towards fiscal For for our point our a sales XX% the wage and

our about for strategic multiple near-term headwinds today made by at the reflects full includes are new expense year. the we've encouraged our across sales impact industry additional of year, the guidance Jack year California's great And expectations some some also that improved year wage while of This gross about annualizing trends Although near-term spoken initiatives, to minimum start the progress it $XX early, and sales last million pressures. we margin law. next we shaped is faced

normalized costs fiscal are for with our Del expecting XXXX, more full a the historically along brands net refranchising and after also We impact commodity this year experiencing in increased year from inflation transactions. Taco combined deflation realizing utility

of we front, Taco integration G&A process are gains the ongoing the On Del improvement our initiatives. efficiency and the proud achieved with

actuarial positive tremendous higher This over for to prior our accruals technology, is our consistent same-store target, shareholder G&A sales expected remain $X However, craveable compensation year team last along the with delivering in reset preopening menus benefits progress investments reserve for years will over our improvements, lap made XXXX. in digital, new operational several incremental fiscal restaurant higher we drive costs meaningful value. We has market having the and foundation well as as of long-term that set restaurants million confident time, to that incentive profitability. as opening uniquely increased be company-owned our in XXXX and expansion, our level and

for organization, my Before to the we to open the a and Box I passion here. take call the like time express The would Jack Darin up to moment questions, my entire in appreciation team and for free operator, success for coming in brands and years. And line the feel to continued please I'm watch this excited dedication throughout open our company's that, with bleed the the Q&A. and to to growth

Silberman, Lauren Deutsche Bank. [Operator first Instructions] go to We'll

to So quarter-to-date. I wanted ask about

quarter. a it's the running fourth X%, pretty acceleration meaningful from said is up which You

you you trends continue and to can through those the that acceleration what's quarter? that the move as talk we extent about So expect driving

think Yes, we've Lauren. innovation to Jack. Thanks, I calendar -- premium both into this And X that out X, with approximately seen and meaningful and improvement as aligned growth been at we during -- been has to coming is of we've we've and seen, X% quarter what we're has A time. had our said, digital. sales of running has innovation lot quarter same-store that us paired been and lean also into at value continuing

you we've our new know, app. As rolled out

are an to We component meaningful to way. more these of that Android roll into as app in about are things out a sales well. And all working of drive

go Sandler. from Mullan, the We'll Brian to next question Piper

Just I over and a Day Rose restaurant-level Investor a Taco. time. it's to about the If actually opportunity got hear year. go I with for these guide want just question Del ask on we the lot in ABXXXX. back we a Tom to to to the dealing from you're the environment, consumer know January, grow and margin tough

what's right you still just, feel has about my to the to normalized to be? on really behind the that is scenes? work that where to the Maybe is gone you in get margin business a do way good what and want the So path question about think

think Jack at with doing, what to similar is So working we in and progress. work we're that fundamentals, Brian, did I financial the

electricity had X to X things inflation it challenge the implemented in has we a by management did little past. up with been has driven -- food by think a has points substantially some we've standpoint with P&L. points. discipline I related the restaurants, it's real and also up that X in us also some and about inventory California, almost over run from our the And than has then better around ABXXXX, The in P&L been of other driving our enabled and labor to Tom the of packaging

would bottom key and line, the top in line. menu I into here if flows. this we're of next the business margins system-wide top a a So that going from standpoint at will line, the is And think it Investor and it in say, improvement with substantial Day, driving the line our couple week And seeing rollout be And standpoint. within come and new last weeks. introduced the line is all drive the we I system top we thing

The next America. from question Bank Sara will of Senatore, come

This you or extent own We relative in California on is demand the to underperformance? to loss wanted performance attribute the Sara. ask, for the would versus quarter your to in Katherine Griffin share what softer backdrop

last missed that question. of I the part

it. figure repeat Yes, out I'll quarter what to the a to own extent share wanted backdrop just California your I was in performance and trying function loss just demand problem. No in of -- underperformance? relative to versus softer the the broader

for Brian. relatively California is has this performed No, Yes, actually well us.

If you QX look the not Jack, at performance better. for line, slightly it's if in

a held -- quarter, well. we talked we us, about and we've seen for we it's up strong it's So little take as price, did the last more had such more traffic a actually market even although of a impact, the California,

price different well. been regions, But it's up in that consumer behavior with had going on held markets, differences strategy franchisees. discipline as across those is the our well what's on some we've based variation some California, as there's in the price-take and the and of So in overall,

more immune not it the really all performance to feel that industry it's good But the QSRs well. pleased that. with California, about in and we're have couple last So quarters, issue going faced in we've as overall, and an our forward been of very of

levels all all are We're income less measure said. also age, spend QSR you and income to and showing And that demographics also also, be if of cohorts think you Brian industry-wide, at the California, the what then about transactions. the same to ethnicity, is And industry-wide, add levels. gender, overall and at regions. it as seeing I'll tends Taco And best performing Del

are transactions that into we and XXXX. improving softer So anticipate know historically, QSR that they've we than been

question next Brian Bittner, from Your Oppenheimer. is

agreements, on Box do progress relates encouraging in progress. to pressure development and to impact you they gross in to net but the it it elevation of is closures, Jack this As see the make to brand, continue the the openings continue the

a Darin, openings? into of visibility closures of line portfolio? the of the of you that progress on these improving bottom you're And have making quantile within have the current health impact gross net the the So, franchise and you subsiding to stores do sight do

Yes.

We continue we in the in. to with of ahead franchisees' see of we QX especially year. health when front get what is that to feel closures our If the this good accelerated system. just last the all flat it, some we're and with about we went look in year basically they the compare financials, our -- environment saw closures were we having to openings at we held We

If And forward rate the suggested a year so, somewhere we we these and between calls be norm, closures, is closures. XX which industry on feel going good about more would think about to X%, historical the we've XX the system. health overall run always is of that of average

what forward an is going of So that's norm. more anticipate industry we

Next Guggenheim. Gregory Francfort, is up

My be can maintenance and it much elevated Brian, question what of versus the I'm guidance going the versus maybe of to just in that for to how is on next go CapEx just could a you CapEx into versus that break how new projects? couple maybe think is is year. stores years. down trying investment

off. priority our really as and can you strategy growing in we no reference well. that the investment. in to take We're change digital. There's And material have. does is We in Investor about been doubt. the back We've making pay our mentioned talked it digital progress no our strategy. seeing top Yes, that mix, Day real good investing We're presentation

and 'XX, the comment with a technology probably the well. relatively restaurant as make our as POS. And looking of investments for are million the at And corporate systems, at $XX I you being to million to technology other and so $XX biggest look both digital the range in similar. We're somewhere want that fiscal rollout components --

think with the have we I calendar year, it's we prepared new stores to the are system end expect our we implemented to want targeting XXXX. by sure whole the completely about clear on make end remarks, on point the XXX that the of of POS sale have of by and to this

little gotten might bit a in we remarks. think I prepared wrong have the

implementation of to proud over in that track it's that's we're year. make calls, the with be system in really smoothly, on really want the just get I by track of really end a I'm So bit again, here, And teams to good POS. about we've clear. the the what process. talked gone on the good next whole We're sure progress. Digressing able prior very to making of

loyalty this then are And our new our our some messaging we've investments, point-of-sale all around critical to operational the can we where version but in-restaurant more Those personalized so, as really building work work to iOS out continue web as the loyalty on we've well as drive Android, grow that digital, of got got implementation, app, work and lot a with to program. as system do interface, enhancements. well of more new

in So we line what with before. that's much pretty talked about

And somewhere The $XX of other step-up range. million to earlier on had, we've aligned million, 'XX $XX shared openings. million somewhere the new is at though, what looking north that, we is the We're again, this restaurant in in $XX year. to

And dollars those restaurants. to then up into things As new of continue those doing company here new in these rest variety in the the stores maintenance cover soon-to-be the we're are and ramp markets. corporate Chicago going in to some of really reimages like we the a Florida, is and like markets,

going to I'm miss room. Brian, being this you in

the that get me the POS to like remember next flabbergast can things say You year rollout you have to completed how and year. this there we're and going in and

Loop is Next Capital. up Alton Stump,

to growth macro also high over-decade call, it's given on the that, just in the Box on been that development it front. site longer fact and, I appetite to this Obviously, the appetite just build last out as you the they was ask are bit has term wanted openings going looking to I not ask, pointed the Jack on on from Has in overall any environment tough at impacted the congrats a quarters, to deals. Or franchisees in Jack and impact negative over have their a Box units? therefore, had of particular. the couple build?

we We're asked. We're have Alton, we've more now. an example, under restaurants I'm Yes, signed. signing glad about agreements to construction than just pipeline. development Jack, XX give you excited ever you our

and We have design and XX approvals XX for in permitting sites.

as XX think development said year, restaurants in Again, it's I have place. as our agreements this we ever we pipeline process. since we of opened started had for is so, those And site strong this been. XXX XXX

good signed new have XX we so, We a And franchisees. pipeline.

X. AUV those $XX,XXX Our new same, already $XX,XXX Lake in are markets AUV And Mexico, are Chicago. opened far. City, X Louisville, with we've in X coming. open, the working. Salt averaging restaurants so

is So pipeline that for. hoped we had momentum starting development the think the build we to

believe XXXX. I think XXXX. in we, our script, even we'll openings we've I openings XX mentioned to, And year early my comments, were gross into most guided that in my year, that comments, as we've accelerate in in this had that this the since the

with good to feel continue franchisees we'll franchisees happening supportive, our pipeline, to our and we new So about future. our more are add what's development

Dennis question Geiger, next is The UBS.

just timeline update potential Taco as how look to been? I see that has on refranchising and tied feedback if good percent milestones the there, sales. a about getting updates talk franchise wanted levels, to progress, you could the what any or you've think the seeing we more we demand good give to those about other as could obviously, But milestones? agreements ahead Any little you bit had

Yes.

at So with Del would continue refranchised We'll refranchise. Taco, to we're call XX% we asset-light. today, that and about

valuation that top We now to evaluate line impacted works because is environment, has to going they for getting want us, in we're sure restaurant what margin and and we deserve. XX grow this have And being restaurants and about how these we're to going impacted we're how ABXXXX to restaurants. do maintain for deals make it's by the continue then margin

have what some environment can can to that the just good we've make we sure so steady demand. now we're We pattern so have that of execute, deals has right a could but And holding We we we're we recapture had. been still the in challenged to. hold that's going in margin still

of We'll Citi. go Jon next to Tower

I the new the come in Darin, out return advertising how lot that's the frankly, particular, coming And that's food there. against spend, message the on ran product through that was just operations news a more get just new 'XX communicate you and I'm curious, news and of you some best and balance it, curious in XXXX. fiscal out the in given all

have there's I did pricing fiscal a the and curious lot And seems I'm -- you you Just following any offered the consumer. just that's into And call that, -- on cutting to if apologize on if then thoughts activity. 'XX? like up around through of

we're think, brand driving sales So awareness. it as to done of and communicating team maximize guests, it how and to to the our I goes lot relates great positioning back optimizing strategy around spend reach a media and to our work brand and that our has

with hitting we right at the also is important have found offer. that so And audience the your we're we've time, sides about now with into then and at has thinking of regular value the leaning also because right that but answer the think right what to making the become daypart, premium by making digital that keep to offers And same both channel base, it deals the guests. I different weekly most we're in a are and time sure are it aggressively, the the is for sure marketplace occasion a guest

need we we're all areas to so, the And at the right communicating sure times. right make

it X% about Jack view on X% the that. parts in for for there's is X price, Del our as fiscal comment for it's And side, Think to right price now to X%. 'XX to can around I and X%

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side normalized the of on same-store little we environment into gave. embedded a the pricing that's that So a guidance sales more

Logan up next. Markets is Reich, Capital RBC

I franchisee XXXX? trend of turning to would follow-up have year today encouraging, business some outlook gross on the be next you had how and to just sort profitability you How through side. a that guys openings on headwinds profitability are faced that's franchisee the Obviously, characterize and going appear around. for in

think down to sales I it growth. comes

received, out rolled programs we them the I get efficiently. helping comes to the the on with flat currently, think mentioned, It it we've really are good recent in job basically we we've really effectively then look will franchisees If we down flow. most running as done back, that that line growth, P&L a manage top I if profitability. year-over-year and data

see into impact is sure company We're provided seeing it P&L the that that's for ABXXXX the of continuing will you guidance us. it if of it's in annualize our restaurants, just the is you XXXX, we've on $XX ABXXXX I'm impact. the headwind million lot somewhat, a like Now -- with just

large So it's a number.

things cost more definitely some line So it franchisees in unless will standpoint. of we're California a growth, then and doing offset feel from with that, we the some top of

in run a profitability. of of keep -- Just owners, and them mind, our good they at many level are franchisees are multiunit

lot own they have of we've through overall, healthy. straight with they're again, we'll very margin system we're since some of the flow in And obviously, able improvements absorb near-term happier navigate this. through So And pressure. and for aligned But the that is is to They're top everybody a this to when overall, bottom are line. again, the performing so driven growth, financial locations, they you us. Again, the multiple sales and overall. set up well line through fundamentals,

The from next Slagle question Jefferies. Alex is of

think at focus improving execution, the You talked 'XX. I big and about a digital to Jack approach on in basics and back

was some bit, be what you're I you could if on So doing expand that add color differently. wondering a on going to little

around that we about We're is scalable make are business the around grown. obsess business is how guest it only the experience, improving going and main on focus focus XXXX, the to to that we structure going sure has that. heading. we that is know and QSR we're because do Since the frictionless back the of is programs digital, The Yes. specifically to basics, that aspect on where

digital in we So is the improving our business, in drive-thru. as and to also then our accuracy, make invest also we at the martech guests, digital sure do for we but our both restaurant stack on the stack, need continue how that level amazing at our and experience to invest

can So to reduce to do make on, in that guests going something that improve we're from XXXX. sure It's us our enable we hear we will alerts. and that that we

So entire aligned around the it organization. in

these performance the the by up new the again, everything of of progress. And described. the enhancements just backbone new we're first done we done lot fourth accelerated loyalty the phenomenal Darin with We're seeing the growth make part app, by new we going of the That digital channels or job teams job and the all optimizing set all on cornerstone making saw sale, to point that's of again, has that app, driving this a to quarter. looking in Again, in has year. third first incremental the We're both are driven a our And that's executing. program, into already it have good the at marketing of party, also on really and continue the them, but team expect and the to a it's the in of first 'XX. transactions party and through

question. the TD Andrew Cowen has Charles from next

Can a largest in safety challenges? to commodity calendar And your deals needs profitably quarter-to-date what October early for Jack of benefit inflation did of range. to Darin, you've differently, value to can said set But sales accelerate you to it's your brand. some to presumably largest to the pick as I seen good bazooka competitors' hear protect high done a follow-up. quick you up? food anticipate traffic just sales XXXX, the your improve XX? It from just Brian, quarter-to-date if with release be guidance competitor end same-store XXXX impact had in Maybe quantify the squeeze after the

our what do then that of our sales positioning that. can we and makes We're and capability, because think lean us to value. do and and to We thing business, rapidly, innovation uniquely the an do continue every behind investment do be means in been that about that So of and do is the day. to our up we're we're premium on plenty what through we've day, Andrew, digital from digital is different. And always we're And I catching opportunity that We focus all we brand the can XX% grow advance advance we we're XX% into our and Jack have doing. today. which we best to industry standpoint, at seeing still going

an know as to users our We opportunity there's loyalty our just -- there. loyalty example, So is XXX%. up in growth

to want that continue Brian, going focus And model. do do at you to question, we better McDonald's? how we're he business second to what on So talk then asked about the part get of the had about

were trends before the Jack We on improvement Yes. seeing that. already

a take quarter. and gained So that there's to were we the through the hold were that took little actions starting 'XX as everyone that trend think we I bit the in the no doubt first share already that up went of to their But back from fortunate challenges. of into was fourth quarter, we half pick starting

start probably that so, better the the look everybody we primary -- think year. don't that of And the driver gained but as at some, to I again,

too, I that's the encouraged knows exactly bit trends year we were it being that industry. was already about nobody on were what But before guide, full a think will impact we impact again, because cautious, we and the why happened how that a seeing. are little

question. next has the Cho Christine Sachs, Goldman From

dynamics to modifications promoted value a promotions? made balance your Are the the everyday more talk that menu? returns thinking any competitive how could and about mix you the of about So can bit value? little we talk value you're on versus in be and about how value quarter the given changing So this there trended need value

Yes.

quarter an points that menu. XXX during example, saw Munchies for about, improvement QX, Under basis of about in we as $X first component our it our action. And value in trends the was that full talked So we've

we're add-on. Under period of done which model. It has seen for for so, addition business to what in also And excited $X our haven't we Munchies a about to the check, led time

us for we $X our so, our Under Two helped quarter. what offers, our saw And during on breakfast we'll $X continue for Two our focus Munchies digital with performing $X and or the $X And really growing business. to then

is Brian Stanley. Next Harbour, up Morgan

you just that assumption It then also to 'XX? next this refranchising into did And Have any question maybe like drives you come a know, feed the XX I pieces had assumed that? relative are that point. what mentioned? of any about savings G&A just in beyond couple year. from a don't that seems I repurchase the there you your guidance for And at not what

Yes. This is Brian.

too not because no, to timing the because unless high-quality And that generally really expect magnitude So, likely we know won't it's We've to do of year just get good shortly we as that up want not we many provided sure next we XX for see step beyond anything the guidance and earlier, to have this somebody Darin restaurants. hard very restaurants for those. make to we wants will year. more these value here in close mentioned

again, repurchases, our So flow the in how prioritization I our -- investments of other got CapEx we deploy operating think terms get cash priority return looking And and again, we dividends. those. talked on we we've number then the the a it. are at through And We'll our share about are of one. good

deploy investing in out long-term now So very amount to way our we're into the we we is modeling But value adjust strategy. cash greatest shareholder that free year. during the just a just really that of can comfortable can repurchases. deliver continue again, We'll right flow

I is $XX the from that a is costs, the But so, out on about will expense preopening just that's on we've that's were then And add our tradeoff aligned in laid we're couple guide where that. preopening, a make points the One which 'XX. aligned I fiscal in traditional just this to with strategy $X.X other million didn't what And of note our about achieve about make to separate year. I we've in interest to sure some We exactly for repurchases we made everybody on guide. assuming other the million the had it. we year, SG&A. in think

With the million. year, be increase restaurant closer expect to in that number the $X number next openings to we of new

at you're that too help guidance does with looking the as your So bit we shape a align models little to gave. that

up, North, we'll Baird. Next Drew hear from

but the hoping QX. comps Jack pricing I you know follow-up the on the of traffic share some aware mix of? of to then could prepared you mentioned bit for notable question quarterly in a remarks, for the the volatility embedded metrics Was thinking shake perspective XXXX? quarter? on on performance It's earlier. where and Jon's traffic did the be of follow-up any cadence in your about there's if being, out And for guidance the how are you And

basically, And Trends quarter-to-quarter. should the increased were then was or improved slightly, slightly, price than lower from flat, say. I previous quarter. Mix

price the Again, improve Traffic can it. did was X%. expectations work about the again, slightly year, we back third for from it quarter, down but you gave the some full And around year. to next your

And so, price traffic the to same-store the work combination between be going difference and the mix. of a on and to got that back is sales you've

everyone, also you And last our conclude today. question the our for participation. is all conclude your that conference. That session. Thank question-and-answer does does That

You may now disconnect.