Tom York on Business: Jack in the Box sees automation improving profitability
San Diego’s Favorite Burger Restaurantjack in the box, recently announced financial results for the second quarter, which in reality were not so good, but the company was optimistic about the future, despite the surge in operating costs due to the current economic turbulence.
The results included both Jack in the Box units, as well as recently acquired Mexican fast food chain Del Taco. This acquisition was finalized in March.
According to an earnings release, Jack’s system-wide sales for the quarter rose a mere 0.1%, largely due to growth in average restaurant volumes, but offset by a slight decrease in the number of restaurants.
“While faced with the continued inflationary pressures facing our industry, we are pleased to have achieved strong same-store sales on a two-year basis. This performance has empowered our franchisees, operators and corporate team members to provide our customers with the innovative and irresistible dishes they have come to expect from Jack,” said Darin Harristhe general manager of the company.
Like other competitors in the fast food industry, Jack is facing rising labor costs in its efforts to offset labor shortages as the economy emerges from the COVID pandemic. -19.
Industry publication catering company says Harris has found at least a partial solution in terms of fighting inflation.
The solution, the magazine writes, is “self-cleaning shake machines.”
“Specifically, … automated cleaning of shake machines, along with simplified burger builds and new cheese pumps, are among a handful of efforts that, over time, could improve profitability by 200 points. basic,” the magazine writes.
In its earnings announcement, Jack in the Box said its overall restaurant-level margin is now expected to be below 17%, down from the previous 20% to 21%, which includes high price increases at a figure, compared to previous estimates in the mid to high single-digit range.
It reported earnings per share of $1.16 for the quarter, missing analyst estimates of $1.36, according to online financial news site MarketWatch. The company posted revenue of $322.29 million for the quarter, versus a consensus estimate of $341 million.
The company declared a quarterly dividend on May 27, according to The Wall Street Journal. Shareholders of record on June 7 will receive a dividend of 44 cents per share on June 22.
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Speaking of burgersfrom Irvine The Habit Burger Grillis opening another San Diego location here at Pacific Beach.
“The San Diego area is home to over 15 Habit Burger Grill restaurants, and we’re excited to open a drive-thru in Pacific Beach! Guests can expect excellent artisanal cuisine and our signature ‘Habit Hospitality’,” said Iwona Altera company executive in a press release.
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San Diego Private Investment Company Copley Equity Partnerswhich focuses on closing deals in lower-middle-market companies with strong growth opportunities, said it invested in an industry-leading advisory firm FMG Leader. The amount of the investment was not disclosed, according to a press release.
FMG Capital is a national service provider that offers lending and financing solutions to small and medium-sized businesses, according to its website. The company provides working capital in amounts ranging from $5,000 to $5 million.
Founded in 2012, Copley has offices in Denver and Boston. And according to its website, the company partners with growing private companies in the lower middle market.
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MG properties, a local real estate owner and operator, has acquired the 275 Verona Apartments in Henderson, Nevada. MG Properties said it owns five other properties in the Las Vegas submarket, according to a statement.
MG Properties says it has acquired 11 communities so far in 2022, totaling more than 2,800 units worth over $990 million. The company says it is looking for more acquisitions in the West.
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At a recent annual awards dinner, the Carlsbad Chamber of Commerce recognized the 331-lit Tri-City Medical Center as Business of the Year in the Large Business category at the recent awards festivities.
The chamber cited the Oceanside-based hospital for its innovations in robotic surgery, its response to the COVID-19 pandemic and its outreach initiatives as well as its future plans, including a new emergency room, a new 3T magnetic resonance imaging and construction of a 16-bed adult psychiatric facility in partnership with San Diego County.
Other finalists in the large business category included a healthcare equipment maker Quidel and theme park Legoland California Resort.
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Business travelers to Terminal 1 at San Diego International Airport can expect to experience major changes starting June 5 – and spanning the 12 months of 2024. The terminal is undergoing a massive overhaul $3.4 billion over five years, and many changes are underway. to accommodate the reconstruction.
Officials said parking will be significantly reduced this summer, with the terminal parking lot closing on June 5. All cars parked in the parking lot must exit by June 14. The terminal parking lot closes permanently the next day.
On June 15, the pedestrian walkway leading to the parking lot and ground transportation island will be closed and replaced with a crosswalk.
Officials said the construction is an important part of the new project which will replace the current facility and make way for a new parking bay which will open in late 2024.
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construction company webcor hired a veteran construction executive Cecilia Kucharski to join the prominent general contracting firm, as vice president and regional manager, to lead its San Diego office.
“Cecilia brings an established presence to Webcor, again in San Diego, with a deep understanding of the markets we’re interested in here, and a comprehensive knowledge of the community, its contractors, elected officials, and how things work. are happening in the region,” said Matt Rossiesenior manager of Webcor.
“What I like about San Diego is that it’s more recession-proof than other markets,” Kucharski said. “Obviously we have defense contractors, a very robust healthcare, life sciences and higher education market. These are stable markets, which positions San Diego as very attractive for long-term growth.”
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The Council of the Conservation of the San Dieguito River Valley said longtime local environmental specialist Cheryl Godard has been named its new CEO.
According to a conservation press release, Goddard brings more than 20 years of local government experience to the position, including more than 15 years of experience in land use and environmental planning in San County. Diego.
Goddard holds a master’s degree in public administration from San Diego State University and a bachelor of arts degree in ethnic studies and urban studies and planning from UC San Diego.
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And finally…Mira Costa College student John Siebelinka military veteran attending a first-generation college, was recently awarded the Jack Kent Cooke Undergraduate Transfer Scholarship which pays up to $55,000 for tuition, books and housing for up to three years in a four-year school.
Mira Costa said Siebelink was selected as one of 1,200 applicants from 332 community colleges. Siebelink said he hopes to transfer to the University of California, Los Angeles. He is the president of the Creative Writing Club on campus.
Tom York is a Carlsbad-based freelance journalist who specializes in business and economics writing. If you have any topical tips you’d like to share, send them to [email protected]