Tom York on Business: Jack in the Box Sees Automation Improving Profitability

Jack in the Box Inc. Based in San Diego, it is famous for its 24 hour service in many stores. But with the pandemic, the fast food chain on Lake Murray Avenue and the Dallas Drive in La Mesa are not taking any chances, reminding drivers that the driver's window is open.
A Jack in the Box store opening in San Diego. Photo by Ken Stone

San Diego’s favorite burger businessJack in the box, recently announced financial results for the second quarter, which, in fact, were not so good, but the company was optimistic about the future, despite rising operating costs due to the current turbulent financial conditions.

The results included both Jack in the box units, as well as the newly acquired Mexican fast-food chain Del Taco. The acquisition was completed in March.

According to a profit announcement, Jack’s sales across the system for the quarter increased by 0.1%, largely due to the increase in the average restaurant volume, but were offset by a slight decrease in the number of restaurants.

“Although we are facing the constant inflationary pressures facing our industry, we are pleased to achieve strong sales in the same stores on a biennial basis. “This performance has allowed our franchisees, operators and members of our corporate team to offer our guests innovative and delicious food that they expected from Jack,” he said. Darin HarrisCEO of the company.

Like other fast-food competitors, Jack faces rising labor costs in his efforts to make up for labor shortages as the economy emerges from the COVID-19 pandemic.

Industry version Restaurant Business said Harris has found at least a partial solution to the fight against inflation.

The solution, the magazine wrote, is “self-cleaning shaking machines.”

“In particular, καθα automated shaking machine cleaning, along with the simplification of burger making and new cheese pumps, is among a handful of efforts that over time could improve profitability by 200 basis points,” the magazine wrote.

In its earnings announcement, Jack in the Box said its overall restaurant-level margin is now expected to be less than 17%, up from the previous 20% to 21%, which includes high single-digit price increases, compared to previous estimates. in the medium to high single digit range.

It reported earnings of $ 1.16 per share for the quarter, excluding analysts’ estimates for $ 1.36, according to the financial news website MarketWatch. The company recorded sales of $ 322.29 million for the quarter, compared to a consensus estimate of $ 341 million.

The company announced a quarterly dividend on May 27, according to the Wall Street Journal. The shareholders of the record of June 7 will receive a dividend of 44 cents per share on June 22.

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Speaking of burgersof Irvine The Habit Burger Grillopens another location in San Diego here on Pacific Beach.

“The San Diego area hosts over 15 Habit Burger Grill restaurants and we are so excited to embark on a trip to Pacific Beach! Visitors can look forward to the wonderful handmade food and our signature “Habit Hospitality,” he said. Iwona Altercompany executive in a press release.

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Private investment company in San Diego Copley Equity Partnersfocusing on lower-middle-income companies with strong growth opportunities, said it had invested in a leading consulting firm in the industry Top FMG. The amount of the investment was not known, according to a press release.

FMG Capital is a national service provider offering lending and financing solutions to small and medium-sized enterprises, according to its website. The company provides working capital in amounts ranging from $ 5,000 to $ 5 million.

Founded in 2012, Copley has offices in Denver and Boston. And according to its website, the company is partnering with emerging private companies in the lower-middle market.

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Properties of MG, local owner and property manager, acquired Verona Apartments 275 units in Henderson, Nevada. MG Properties said it owns five more properties in the Las Vegas sub-market, according to an announcement.

Properties of MG says it has acquired 11 communities in 2022 so far, with a total of more than 2,800 units worth more than $ 990 million in value. The company says it is looking for more acquisitions in the West.

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At a recent annual awards dinner, the Carlsbad Chamber of Commerce recognized the 331-bed Tri-City Medical Center as Business of the Year in the category of large companies at recent awards ceremonies.

The chamber – Room reported Oceanside-based hospital for its innovations in robotic surgery, its response to the COVID-19 pandemic and its promotion initiatives, as well as future projects such as a new emergency room, a new 3T MRI system and the construction of a 16-bed adult psychiatric facility in collaboration with the County of San Diego.

Other finalists in the corporate category included a healthcare equipment manufacturer Quidel and theme park Legoland California Resort.

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Business travelers heading to San Diego International AirportTerminal 1 of Terminal 1 is expected to undergo significant changes from June 5 – and will extend to the 12 months of 2024. The terminal has a huge five years, $ 3.4 billion, and many changes are underway for reconstruction.

Officials said parking would be significantly reduced this summer, with the terminal closing on June 5th. All cars parked on the plot must leave by June 14. The terminal parking closes permanently the next day.

On June 15, the footbridge to the parking lot and to the land transfer island will be closed and replaced with a pedestrian crossing.

Officials said the construction is an important part of the new project that will replace the current facility and pave the way for a new parking lot that will open in late 2024.

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Construction company Webcor has hired a veteran construction executive Cecilia Kucharski rejoin the leading general contractor, as vice president and regional director, to lead its San Diego office.

“Cecilia brings in Webcor “A well-established presence, once again in San Diego, with a deep understanding of the markets we are interested in here and full knowledge of the community, its subcontractors, elected officials and the way things are done in the area,” he said. Matt RossiWebcor top executive.

“What I like about San Diego is that it is more resilient to the recession than other markets,” Kucharski said. “Obviously, we have defense contractors, a very strong market for healthcare, life sciences and higher education. “These are stable markets, which make San Diego very attractive for long-term growth.”

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His Board of Directors Conservancy of San Dieguito River Valley Conservancy said the longtime local environmentalist Cheryl Goddard has been appointed its new Executive Director.

According to a press release from keepGoddard brings more than 20 years of local government experience to the position, including more than 15 years of land use and environmental planning experience in San Diego County.

Goddard holds a Master’s degree in Public Administration from San Diego State University and a Bachelor of Arts in Ethnic Studies as well as Urban Studies and Design from UC San Diego.

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And finally…Mira Costa College school student John SiebelinkA military veteran who is a first-year college student was recently awarded the Jack Kent Cooke Undergraduate Transfer Fellowship, which pays up to $ 55,000 for tuition, books and up to three years in a four-year school.

Mira Costa said Siebelink was selected as one of 1,200 applicants to 332 community colleges. Siebelink said he hopes to be transferred to University of California, Los Angeles. He is president of the Creative Writing Club on campus.

Tom York is a Carlsbad-based freelance journalist specializing in business and economics writing. If you have news tips you want to share, send them tom.york@gmail.com.

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