Jack In The Box 2006 Annual Report Download - page 6

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Between our Jack in the Box and Qdoba brands, we have nearly
2,400 restaurants in 43 states, as well as the District of Columbia.
Two-thirds of those restaurants are in California, Texas and Arizona,
leaving substantial opportunities to expand both brands in new
and existing markets.
Last year we added more than 100 new Jack in the Box and Qdoba
restaurants to our system and opened 11 Quick Stuff sites, which
combine our proprietary brand of convenience store with a full-size
Jack in the Box restaurant and a major-brand fuel station. We plan
to open 120-135 restaurants in 2007 and are pursuing opportunities
to expand both restaurant brands into new markets.
In addition to new unit growth, we’re looking to improve unit
economics through growth in other areas of operations, including
earnings, same-store sales, margins and returns, while lowering
investment costs.
With same-store sales at Jack in the Box company restaurants
increasing 5.9 percent in the fourth quarter, we extended our
string of consecutive quarterly increases to 13. The stretch of
consecutive quarters of positive comparable same-store sales
growth at Qdoba system restaurants is even more impressive:
29. That’s more than seven years!
Restaurant operating margin in 2006 improved 60 basis points
versus last year, to 17.5 percent of sales, which was due primarily
to the same-store sales growth along with lower costs for com-
modities and workers’ compensation insurance, and profit
improvement program initiatives.
ON GROWTH
The re-imaging
program under way
at Jack in the Box
includes a complete
redesign of the dining
room, as seen at this
restaurant in Waco,
Texas. Interior finishes
include ceramic tile
floors, a mix of seating
styles, decorative
pendant lighting,
and graphics and
wall collages.
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