Jack in the Box has named Mark King as executive chairman and interim CEO, as the company continued to record a drop in sales in its latest quarter.

King has been a member of the board since November and its chair since March. He was previously CEO of Taco Bell Corp, where he led franchise operations and enhanced consumer engagement, and CEO of Xponential Fitness.

As interim CEO, he will focus on accelerating Jack in the Box’s transformation.

“I am pleased to serve as Interim CEO of Jack in the Box as we work with urgency to improve operating results and enhance shareholder value,” said King. 

“We are committed to executing on our ‘Jack on Track’ plan with discipline and at speed. We will continue to empower our franchisees to deliver a high-quality guest experience as we grow same-store sales, expand margins, and reduce debt,” he added.

King succeeds Lance Tucker, who had been CEO since last March. 

Persistent declines

The leadership transition comes as the restaurant chain recorded declines in comparable sales for five consecutive quarters.

In the second quarter ended April 12, same-store sales decreased 3.8 per cent, with franchise sales down 3.9 per cent and company-owned sales down 2.8 per cent. 

Systemwide sales for the quarter also fell 3.8 per cent, attributed to a decline in transactions, partially offset by higher prices. 

Restaurant-level margin shrank from 19.6 per cent a year ago to 16.4 per cent, and franchise-level margin fell from 40 per cent to 37.9 per cent. 

Net earnings from continuing operations, which excludes the Del Taco business, plunged nearly 40 per cent to $12.5 million.

Restaurant count remained flat in the second quarter, with nine openings and nine closures.

King said second-quarter results did not meet expectations, but trends have improved into the third quarter.

For the full year, the company expects a low single-digit same-store sales decline.