Term Paper on "Jack in the Box"

Term Paper 11 pages (2956 words) Sources: 7 Style: APA

[EXCERPT] . . . .

Jack in the Box

I chose to write this document on Jack in the Box because ever since we were children, we can remember the Jack in the Box clown and the story our parents used to tell us just as we can remember having a Jack in the Box restaurant around when we wanted to eat something.

Secondly, we believe it is an important company which tries to satisfy all its customers' needs and do to the fact that we can compose our own sandwiches and menus it manages to achieve this goal at a higher rate than any other local competitor.

Thirdly, we like the way their management team deals with conflicts, lawsuits and manages to keep the good rename of the company. Moreover, I like their funny commercials and the fact that they are not afraid of the competition.

Furthermore, we like the fact that they support foreigners in learning English and they do not discriminate when it comes to hiring people. But what I like most is the fact that they are not a company, but a family, which enriches itself with each employee and each customer.

II. Company Profile

The first Jack in the Box® restaurant was opened in 1951, in San Diego, on the most important east-west access road into the city, by an entrepreneur named Robert O. Peterson. The restaurant was rather modern as it was "equipped with an intercom system and drive-thru window." While the large jack-in-the-box clown kept watch from the roof, the small restaurant sold 18 cents hamburgers to motorists who were passing by.

Together with his Jack in the Box fast-foods, Mr. Peterson managed other restaurant concepts. Moreover, he ran a food-manufacturing facility as part of a bigger business entitled San Diego Commissary Co. Then, in the 1960s, San Diego Commissary modified its company name to Foodmaker Co., and Jack in the Box stretched out of California with the opening of its primary fast foods in Phoenix, Arizona. Later on, Jack in the Box reached Texas, where it opened restaurants in many areas such as Houston and Dallas-Ft. Worth.

In 1968, Ralston Purina Co. bought controlling interest in Foodmaker and managed the company as a wholly-owned subsidiary. Thus, the business expanded to more than 1,000 restaurants by 1979, although the company sold or closed more than 200 Jack in the Box fast foods in the eastern and midwestern markets due to the fact that it decided to focus its attention on the western and southwestern ones.

In 1985, members of Foodmaker management and other investors finished a leveraged takeover of the company from Ralston Purina. Foodmaker's management enriched when the company went public two years later and it became a privately owned corporation in 1988. "In 1992, Foodmaker again went public, with an offering of 17.2 million shares priced at $15 per share."

With the passing of time and while continuing with its expansion, Foodmaker divested itself of all restaurant concepts. In 1999 the company changed its name to Jack in the Box Inc. Moreover, it converted its New York Stock Exchange ticker symbol to JBX. It is a public company.

To sum up, Jack in the Box, Inc. operates 2,132 quick-service restaurants, from which 1,436 restaurants are company-operated and 696 franchise-operated under the brand name "Jack in the Box." Moreover, since 2003, the company operates 395 fast-casual restaurants under the Qdoba Mexican Grill brand name, from which only 90 restaurants are company-operated while 305 restaurants are franchise-operated. Furthermore, starting with 2002, "it operates 60 convenience stores under the name Quick Stuff®, including a fuel station adjacent to a Jack in the Box restaurant."

United States Locations:

Arizona

173 Locations

North Carolina

28 Locations

California

907 Locations

Oklahoma

Locations

Hawaii

27 Locations

Oregon

45 Locations

Idaho

25 Locations

South Carolina

21 Locations

Illinois

13 Locations

Tennessee

25 Locations

Louisiana

20 Locations

Texas

569 Locations

Missouri

59 Locations

Utah

Locations

Nevada

76 Locations

Washington

136 Locations

New Mexico

Locations

Colorado

Locations

Total Number of Locations: 2132

Due to the fact that Jack in the Box, Inc. is not an international company, that is, it only has restaurants in the United States of America, it only has domestic competitors and not international ones. However, if we were to make a comparison between the company's main competitors, the industry in itself and the company, this is how it would look like:

JBX

Jack in the Box Inc.

BKC

Burger King Corporation

MCD McDonald's Corp.

YUM Yum! Brands Inc.

Industry

Market Cap:

1.65B

3.21B

60.02B

18.22B

Employees:

4.10K

Qtrly Rev Growth (yoy):

Revenue (ttm):

2.88B

2.29B

23.17B

10.17B

Gross Margin (ttm):

EBITDA (ttm):

6.55B

1.84B

44.09M

Oper Margins (ttm):

Net Income (ttm):

1.82B

11.84M

EPS (ttm):

P/E (ttm):

PEG (5 yr expected):

P/S (ttm):

If we were to make a Top 10 Restaurant Companies by the market cap, this is how it would look like: McDonald's Corp. (MCD) - 60.4B, Yum! Brands Inc. (YUM) - 18.1B, Chipotle Mexican Grill, Inc. (CMG) - 4.1B, Darden Restaurants Inc. (DRI) - 3.9B, Burger King Corporation (BKC) - 3.2B, Wendy's International Inc. (WEN) - 2.1B, Brinker International Inc. (EAT) - 1.9B, Jack in the Box Inc. (JBX) - 1.6B, the Cheesecake Factory Inc. (CAKE) - 1.5B and Sonic Corp. (SONC) - 1.3B.

The Jack in the Box's Historical Stock Chart of the last five years (Jan 2003 - Jan 2008) looks like this:

When it comes to its employees but also to its customers, Jack in the Box puts and accent on diversity at all levels and is dedicated into offering fair chances for everyone and to an "inclusive, culturally sensitive and respectful environment strengthened through leadership, equitable policies and best practices." The company has more than 40,000 employees and provides food and services for more than a half-billion people per year. At Jack in the Box both the staff and visitors, together with the "board of directors, franchise operators and other business partners comprise men and women from different nations, cultures, ethnic groups, generations, backgrounds, skills and abilities."

Due to the fact that it is a large company, it does not have a very detailed organizational chart. However, from the company's website we can find out information about the Jack in the Box's management team: There are the Executive Officers: Linda a. Lang, (chief executive officer and chairman of the board since October 2005), Paul L. Schultz, (president and chief operating officer since October 2005), Jerry P. Rebel, (executive vice president and chief financial officer since October 2005), Carlo E. Cetti, (senior vice president, human resources and strategic planning since July 2002), Terri F. Graham, (senior vice president and chief marketing officer since September 2007), Phillip H. Rudolph, (senior vice president, general counsel and corporate secretary since November 2007), David M. Theno Ph.D.,(senior vice president, quality and logistics since May 2001) and Gary J. Beisler,(chief executive officer of Qdoba Restaurant Corporation since November 2000 and president since January 1999)

The Board of Directors together with the membership of each of the five standing board committees is presented in the above figure.

When speaking of the international market, there is very few information available. In fact, except for two news-paper articles from 1991 and 1996, there is no additional information on the international side of the business. These two newspaper articles talk about the opening of Jack in the Box restaurants in Tijuana, Mexico and in Bangkok, Shanghai and Singapore.

There is no International Sales department as the company did not focus on the international market, but rather preferred to penetrate the local one (USA). Therefore, there are no international markets being served do to the fact that "Jack in the Box Inc. is not currently pursuing franchise opportunities outside the United States." Percentage of revenues generated from international sales is also inexistent, according to the annual report 2006

However, although they are not considering international markets as the next step to their development, they are offering franchise opportunities in the U.S.A. stating that their main advantage, unlike their major QSR competitors, is the fact that most Jack in the Box restaurants are company-operated. The company's long-term goals are "to grow the percentage of franchise ownership in the Jack in the Box brand by approximately 5% annually and to move toward a range of franchise ownership more closely aligned with that of QSR industry."

In terms of management and marketing problems, Jack in the Box always had a team who managed to face all problems and come up with a strategy that managed to make the company even stronger and more profitable.

The most impressive problem their management faced throughout the existence of the company was the 1993: "Three Washington children died and 600 others were sickened due to poisoning from E. coli O157:H7 served in undercooked Jack in the Box hamburgers." Even worse was the fact that "The Jack in the Box fast-food chain knew about but disregarded Washington state laws that would have prevented the deadly 1993 outbreak of E. coli food poisoning, according to… READ MORE

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