Jack In The Box 2005 Annual Report Download - page 9

majority of our Qdoba system, approximately
77 percent, is franchised, and we will continue to
aggressively expand this concept predominantly
through franchising.
How do you intend to achieve the third major
element of the company’s strategic plan: driving
product innovation and building customer loyalty?
For Jack in the Box and Qdoba, this means developing
a pipeline of differentiated products that our guests
crave as well as enhancing existing products to
create menus that can drive incremental traffic,
increase average checks and build brand awareness.
Additionally, Jack in the Box, Qdoba and Quick Stuff
will continue to build upon brand loyalty programs
that are in various stages of development and
implementation.
What are your plans to increase shareholder value?
The underlying objective of our strategic plan is
to increase shareholder value over the long term.
In recent years, we’ve seen improvements in our
return metrics and market capitalization, and
a reduction in our debt-to-equity ratio. We’re
generating strong cash flows, which we’re investing
in new unit growth, brand reinvention and share
repurchases. In fact, since May of 2002, our board
has authorized repurchase programs totaling
$330 million, including a current authorization
of $150 million to buy back shares over the next
three years.
What impact did the new Sarbanes-
Oxley regs have on the company?
Other than investing time and
resources to demonstrate our
compliance with Section 404 of
Sarbanes-Oxley, we’ve experienced
minimal impact from this recent
legislative mandate, which requires
documentation and certification
of internal controls. Jack in the Box
Inc. has long been an advocate of
the values of strong corporate
governance, including transparency,
accountability and responsibility.
Institutional Shareholder Services
rates Jack in the Box Inc. as having
one of the strongest programs of
governance in the country, outperforming
nearly all of our industry peers and
companies in the S&P 600. We take
corporate governance very seriously and
are pleased to see our high standards receive this
recognition.
Describe Jack’s philanthropic side. Is the company
actively supporting its restaurant communities?
Absolutely! We’re proud of the positive difference
we’re making in the communities where our
employees and guests live and work. Through
The Jack in the Box Foundation we’re supporting
charitable endeavors that range from helping at-
risk children through our primary charity partner,
Big Brothers Big Sisters, to building strong
neighborhoods through Habitat for Humanity. One
such program that we’re particularly proud of is
“Operation Bigs,” which The Foundation helped
Big Brothers Big Sisters launch at Camp Pendleton
Marine Corps Base in San Diego. It matches kids,
who have at least one parent deployed overseas,
with mentors primarily from the military. Funded by
donations from Jack in the Box Inc., our employees,
franchisees and business partners, The Foundation
also teams up with the American Red Cross to help
rebuild communities in times of disaster, including
the devastation by hurricanes in the Gulf Coast
states in 2005. Doing the right thing in our restaurant
communities is an important part of the way we do
business – it’s all part of what we call Jack’s Way.
How does Jack feel about a woman
running the company?
As long as I don’t park in his reserved parking
space at the office, he’s pledged his full support.
Thank You,
Linda A. Lang
Chairman and Chief Executive Officer