Jack In The Box 2008 Annual Report Download - page 5

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Jack in the Box restaurants are currently in only 18 states.
Based on our success in entering new markets with our new
restaurant prototype, we plan to accelerate growth where brand
awareness is high. During the year, our franchisees expanded
Jack in the Box into several new contiguous markets in Texas,
while we opened our first company restaurants in Denver.
Franchisees are expected to continue expanding Jack in the Box
into new contiguous markets in fiscal 2009, with locations
scheduled to open in Colorado, New Mexico and Texas. In
addition, several new markets have been approved for initial
development, or “seeding,” by the company. Our plans are to
refranchise these markets in the future.
Qdoba also expanded into several new markets in fiscal 2008.
And though Qdoba will continue expanding mostly through
franchise investment, we plan to accelerate the pace of
new company restaurant openings to benefit from the high
cash-on-cash returns generated by Qdoba.
Long-term Goals — Looking beyond fiscal 2009, we are
focused on several long-term goals. Assuming that the current
economic downturn does not extend beyond fiscal year 2009,
following are our goals for 2010-2013:
•Earnings growth of 12% to 15% per year, with continued
focus on improving returns on invested capital.
•Same-store sales growth of 2% to 4% annually at
Jack in the Box restaurants.
•Same-store sales growth of 3% to 5% annually at
Qdoba restaurants.
•Increased new unit growth of Jack in the Box restaurants
to approximately 3% to 4% per year systemwide.
•Increased company growth for Qdoba, with 30 to 40 new
locations opening per year, and total system growth of
approximately 75 to 100 units per year.
•Continued refranchising of Jack in the Box restaurants,
with the goal to be 70% to 80% franchised by end of fiscal
year 2013.
Investment Drivers — There are several attributes that we
believe continue to make Jack in the Box Inc. a compelling
investment opportunity. With dual restaurant concepts competing
in different segments of the restaurant industry, we have the
advantage of unique brand positioning with strong awareness
and innovative menu and product-development processes. We
are also making significant progress in evolving our business
model from one that is driven primarily by company-operated
restaurants to predominantly franchise operated. And there
are abundant opportunities to continue expanding our
Jack in the Box and Qdoba brands in new and existing markets.
In Conclusion — My thanks to all of our shareholders for their
continued support in fiscal 2008 and to our employees and
franchisees for their many contributions in a very challenging
economic environment. We couldn’t execute our strategic plan
as effectively as we have without their commitment and dedication.
I’d also like to acknowledge the tremendous strength of the
Jack in the Box brand. Even in tough times our brand remains
compelling to our guests as well as attractive to prospective
franchise operators interested in investing in our business.
Sincerely,
Linda A. Lang
Chairman and Chief Executive Officer