Jack in the (Burger) Box

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The company that brought you the "Bacon Bacon Cheeseburger" -- a burger sporting both bacon slices and bacon pieces -- is opting for a more upscale tack. Jack in the Box (NYSE: JBX) today unveiled plans to "reinvent" its brand over the next three to five years.

Out-branded by national powers McDonald's (NYSE: MCD), Burger King, and others, Jack in the Box has relied on discounting to compete. (Whitney Tilson wrote an interesting overview of the quick-service business earlier this year.) Now with higher-quality products and better service, the company hopes to broaden margins.

You can already see the baby steps. Salad offerings are splashed across the front page of the company's website. The acquisition of the Qdoba Mexican Grill fast-casual chain is prominently displayed, and the current menu mixes fast-food standbys with chicken teriyaki and pita sandwiches. Now, the company wants to integrate these and other changes into one master plan.

Today's news highlights the challenges faced by second-tier players in the burger business. Jack in the Box has about 2,000 restaurants, including 100 Qdobas, a far cry from McDonald's approximately 38,000 worldwide or even Wendy's (NYSE: WEN) 6,300. When the big guns decide to battle it out on price, you've got to decide whether to play along or aim upscale. (Rick Aristotle Munarriz took a look at the burger wars in April.)

But a step upscale is hardly easy for a burger chain, as competitors branch into quickie-Mexican, pizza, chicken -- Yum Brands (NYSE: YUM) does all three -- deli sandwiches and more.

The road in the near term may be difficult for Jack in the Box, which is projecting slower near-term growth as it rebrands. Helping the company's case, however, is a history of steady free cash flow, a winning battle against debt, and signs of good management. All that should help it stay on course as it works to "find itself."

You can reach Dave Marino-Nachison at DMarnach@Fool.com .