Restaurant chain Jack in the Box reports its expansion is running at the highest rate in a decade.
Despite challenges in the macroeconomic environment, CEO Darin Harris emphasised the company’s achievements in restaurant openings, franchise commitments, and digital initiatives for both Jack in the Box and Del Taco segments for the year to September 29.
“I am very pleased we achieved our gross opening targets for both Jack in the Box and Del Taco in fiscal 2024, reflecting a level of growth not seen in over a decade,” said Harris.
The company’s total revenues for the fourth quarter decreased 6.2 per cent year-on-year to $349.3 million from $372.5 million.
Net earnings were $21.9 million for Q4, unchanged from the same period last year. Diluted earnings per share rose slightly to $1.12, compared to $1.08 in the prior year.
Meanwhile, Jack in the Box same-store sales declined by 2.1 per cent in Q4 and 1.3 per cent for the full fiscal year. Del Taco reported a 3.9 per cent decline in Q4 same-store sales and a 1.5 per cent decline for the fiscal year.
Development milestones
Jack in the Box opened 30 new restaurants this year, achieving its highest level of openings since 2012.
The company also approved 60 restaurant sites, the most since 2010.
Since launching its development program in 2021, Jack in the Box has signed agreements for 464 restaurants, with 51 already open. At the same time, Del Taco opened 14 new restaurants during the year, bringing its net positive unit growth to two.
Additionally, the brand refranchised 47 restaurants and secured commitments for 42 new locations as part of its refranchising efforts. Del Taco is now nearly 80 per cent franchised.
Expansion plans
Looking ahead, Jack in the Box expects to open eight restaurants in Chicago next year and plans to enter Florida later in the year.
A recent franchise development agreement will also see the brand enter Detroit with five new restaurants, contributing to 10 commitments in Michigan.
“We managed well through a difficult top-line macro environment in 2024 and will continue to aggressively pursue initiatives to help energize sales and traffic in 2025,” Harris concluded.
