Investors following resurgent fast-food chain operator Jack in the Box
The impetus to do this, it seems, came after the company read a recent filing from Hardee's operator CKE Restaurants
Jack's management deserves credit for crafting a detailed press release that should help most investors -- at least those who aren't scared to death of financial statements -- understand what's going on without taking night courses. And so while investors may not be thrilled with the idea of depressed net incomes, they can at least find some relief in the fact that this depression is a function of math and accounting, rather than operations.
It's the rapid upswing in operations at Jack in the Box, long an also-ran for investor attention in the world dominated by McDonald's
The company is doing the big things -- like delivering strong results and identifying promising growth avenues as Jeff Hwang noted in November -- and the little, like the recent announcement of a "cash card" program that, while perhaps not poised to set the world on fire, is a relatively low-effort way to build loyalty through the old "cash that isn't cash" trick.
Despite the impacts of the accounting change, it's a company I'm watching and would certainly consider owning -- if only investors would hand me some shares just a bit cheaper than they are now. They're currently trading at about 15 times next year's (new) projected earnings, which are seen growing at about 15% year-over-year. That's not bad, but I'd like even more of a discount to entice me to enter such a competitive arena.
Fool contributor and investing cheapskate Dave Marino-Nachison doesn't own any of the companies in this story.