SAN DIEGO - Jack in the Box Inc. (NASDAQ: NASDAQ:JACK), a major player in the fast-food industry, has announced the resignation of Executive Vice President and Chief Financial Officer Brian Scott. Following his departure, Senior Vice President and Controller Dawn Hooper will step up as the principal financial officer starting November 1st and will serve as interim CFO after Scott's final day on November 20th.
This change comes as Scott moves on to an opportunity outside the restaurant sector. Hooper, who has been with Jack in the Box for over two decades, is no stranger to the CFO role, having previously held the position in an interim capacity. Her extensive experience within the company is expected to ensure a seamless transition while the search for a permanent CFO is underway.
CEO Darin Harris expressed gratitude for Scott's contributions to the company and underscored his commitment to finding a new financial leader who will support the ongoing transformation and growth ambitions for Jack in the Box and its recently acquired brand, Del Taco.
Scott, reflecting on his tenure, praised the company's leadership team and expressed confidence in the future success of both Jack in the Box and Del Taco in achieving strategic goals and enhancing shareholder value.
Jack in the Box, founded in San Diego, California, operates and franchises one of the nation's largest hamburger chains with approximately 2,200 restaurants in 21 states. It also owns Del Taco, the second largest Mexican-American QSR chain in the U.S., with around 600 restaurants across 16 states.
The information in this article is based on a press release statement from Jack in the Box Inc.
In other recent news, Jack in the Box revealed a 2.2% decrease in system same-store sales during the third quarter of 2024. Despite this dip, the company is actively working on enhancing value offerings and driving digital growth. As part of the recent developments, Jack in the Box is expanding its operations, with a particular emphasis on entering the Chicago market. The company has announced a new franchise agreement to open 12 new locations in the Chicago area, as well as the introduction of two CloudKitchens and eight company-operated restaurants in Chicago's suburbs.
Meanwhile, Del Taco, which is also owned by Jack in the Box, has opened a new restaurant in Kissimmee, Florida. This location features the company's Fresh Flex (NASDAQ:FLEX) design and a new menu item in collaboration with actor Danny Trejo's Trejo's Tacos. In response to Jack in the Box's recent performance, TD Cowen has revised its outlook on the company's shares, lowering the price target to $57 from $59 while maintaining a Hold rating.
For the full year, Jack in the Box expects an adjusted EBITDA between $320 million and $325 million, with operating EPS of $6.10 to $6.25. These developments are part of the ongoing efforts of both companies to adapt and grow in the face of changing market conditions.
InvestingPro Insights
As Jack in the Box Inc. (NASDAQ: JACK) navigates through this leadership transition, recent financial data and expert insights from InvestingPro shed light on the company's current position and challenges ahead.
According to InvestingPro data, Jack in the Box's market capitalization stands at $868.7 million, reflecting its significant presence in the fast-food industry. However, the company's revenue growth has been negative, with a 7.43% decline in the last twelve months as of Q3 2024. This downturn in revenue aligns with the company's need for strategic transformation, as mentioned by CEO Darin Harris.
InvestingPro Tips highlight that Jack in the Box operates with a significant debt burden, which could be a factor in the company's financial strategy moving forward. The incoming CFO may need to address this as part of the ongoing transformation efforts. On a positive note, management has been aggressively buying back shares, potentially signaling confidence in the company's long-term prospects despite current challenges.
The company's stock performance has been volatile, with InvestingPro data showing a 25.88% price decline over the past six months. This volatility underscores the importance of strong financial leadership during this transitional period. Despite these challenges, Jack in the Box has maintained dividend payments for 11 consecutive years, with a current dividend yield of 3.74%, which may appeal to income-focused investors.
Investors and analysts will be closely watching how the new financial leadership addresses these challenges and capitalizes on opportunities to drive growth for both Jack in the Box and Del Taco brands. For those seeking a deeper dive into Jack in the Box's financial health, InvestingPro offers additional tips and insights, with 8 more tips available on the platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.