Jack in the Box (JACK) Expands in Florida With New Agreements
Jack in the Box Inc. JACK continues to secure development agreements with new franchisees in Florida. The company recently secured new franchise commitments with expansion plans in Tallahassee and Orlando.
Florida's significant population growth and business-friendly environment are considered key factors for driving the expansion. JACK secured more than 400 new franchise commitments in the past three years, nearly 10% of which are planned for Florida.
The franchise expansion details include future development commitments for five units in Tallahassee and 10 units in Orlando. However, specific sites for the restaurants have not yet been finalized.
The new locations will provide dine-in, drive-thru and mobile ordering options. Also, customer favorite items such as burgers, tacos, chicken sandwiches, milkshakes, breakfast and late-night snacking options will be made available.
Emphasis on Unit Expansion
The company continues to collaborate with its franchisees and leverage guest insights to ensure that value remains a competitive advantage. During second-quarter fiscal 2024, the company opened new restaurants in Utah, Alabama, Florida and California and reported solid feedback regarding the same.
During the quarter, the company observed a steady increase in franchise development interest. It signed agreements to expand in Atlanta and Greensboro, NC.
It stated plans to open its first restaurant in Orlando in early 2025. A new franchisee agreement was signed to open a restaurant in Tallahassee. As of Apr 14, 2024, the company reported 31 total restaurant commitments in Florida.
The company is optimistic concerning the dynamic new-market expansion in the Southeast. It anticipates the expansion to contribute positively to Jack in the Box's financial performance and market share.
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In the past year, the stock has declined 36.1% compared with the industry’s 4.8% fall.
Zacks Rank & Key Picks
Jack in the Box currently carries a Zacks Rank #3 (Hold).
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