Yahoo Finance JACK in the Box (JACK) Expands With Del Taco in Chesapeake
Jack in the Box Inc. JACK, the parent company of Del Taco, unveiled its first location in Chesapeake, VA, as part of a multi-unit agreement to expand along the East Coast. This marks the first venture for franchisees Steve Kissel and Brian McGavran.
Located at 1507 Sam's Circle, the new Del Taco restaurant will offer a menu featuring tacos, Epic Burritos, quesadillas, beverages and its famous Crinkle-Cut fries. The restaurant will introduce Del Taco’s Fresh Flex layout, emphasizing a modern design and practical layout changes to enhance the dining experience. The interior design reflects the company’s focus on freshness and quality, with vibrant colors bringing the brand’s ethos to life.
Guests can utilize dual drive-thru lanes and pick-up lockers for orders made via the Del Taco mobile app or third-party food providers, enabling seamless order-ahead options and expedited service for delivery drivers. This expansion represents a significant step in Del Taco’s eastern growth initiative.
Focus on Del Taco’s Expansion
Jack in the Box’s expansion through Del Taco underscores the company's strategic efforts to strengthen its market presence and connect with local communities. By focusing on modernized restaurant designs and a diverse, high-quality menu.
On Jun 19, JACK announced the opening of a new Del Taco location at 3209 E Colonial Drive in Orlando, FL. This marked the sixth Del Taco in Orlando and one of six new restaurants slated to open in Florida this year as part of JACK's aggressive expansion strategy in the fast-food industry.
During the fiscal second quarter of 2024, the company stated progress in Del's new menu simplification test, witnessing signs of boosted sales, improved speed of service and enhanced margins. The testing of kiosks at Del Taco displays potential benefits such as increased ticket sizes and lower labor costs, contributing to the overall progress toward a future system-wide opportunity for both brands. The company stated benefits from new restaurant openings in Utah, Alabama, Florida and California.
During the quarter, the company refranchised 13 Del Taco Restaurants with a new franchisee that includes a development agreement for 10 additional restaurants. It also has an agreement in place to franchise an additional 27 restaurants that are expected to close in the third quarter. Also, the company announced agreements to expand operations in Atlanta and Greensboro, North Carolina. JACK is on track for 40-60 refranchised restaurants in 2024, aiming to have Del 90% franchised by the end of 2025.
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Shares of this Zacks Rank #3 (Hold) company have declined 20.8% in the past three months compared with the industry’s decline of 4.2%. The company is likely to benefit from franchise developments, digital initiatives and menu innovation. Also, its focus on the CRAVED reimage program bodes well. However, dismal comps and wage inflation are a concern.
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