Qdoba Mexican Eats’ same-store sales growth
From 2011 to 2013, the same-store sales growth of Jack in the Box’s (JACK) Qdoba Mexican Eats’ company-owned restaurants outperformed the same-store sales growth of franchisee-owned restaurants. However, in the last two years, the trend has reversed. In 2014 and 2015, franchisee-owned restaurants recorded same-store sales growth of 6.3% and 10.4%, respectively, against company-owned restaurants’ 5.7% and 8.3%. In 2015, the system recorded 9.3% same-store sales growth.
Comparing same-store sales drivers over the years
The two main drivers of same-store sales, average ticket size and traffic, have increased over the past five years. Between 2011 and 2015, the average ticket increased from $9.70 for company-operated restaurants to $11.80, an increase of 19.3%. In 2015 alone, the average ticket size increased by 8.1%. In 2013, the company claimed that the severe winter weather conditions of that year had led to a decline in same-store sales growth.
In October 2014, Qdoba simplified its pricing structure. Guests are charged a set price per entry depending upon the protein they choose, which has contributed to a larger average ticket size. Traffic, or transactions, decreased in 2015 by 0.1%.
Peer comparison: Same-store sale growth
The Consumer Discretionary Select Sector SPDR ETF (XLY), which invests about 10% of its portfolio in restaurant stocks, has 4.8% of its portfolio invested in McDonald’s (MCD) and 3.8% invested in Starbucks (SBUX).