What ails Jack in the Box?
The nation’s fifth largest burger chain has upgraded its food, remodeled its stores and trained its employees in the fine art of customer service.
But even though consumers forked over $3 billion for sandwiches, tacos, churros and other food last year, sales are still way below pre-recession levels. Jack in the Box Inc.’s stock remains sluggish and last week the company said its profit in the three months ended April 17 dropped 62% from the same period last year.
Customers are starting to return to its stores, but it’s a trickle, with same-store sales up 0.8% over the second quarter of 2010.
“They need to find a way to differentiate themselves,” said Darren Tristano, restaurant analyst for the research firm Technomic Inc. “If you think of Jack in the Box, I’m not sure what you think of anymore.”