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
Out-branded by national powers McDonald's
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
But a step upscale is hardly easy for a burger chain, as competitors branch into quickie-Mexican, pizza, chicken -- Yum Brands
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 [email protected] .