Jack in the Box brand
By the end of fiscal 3Q17, the Jack in the Box brand—operating under the umbrella of Jack in the Box (JACK)—operated 340 company-owned restaurants and 1,915 franchised restaurants.
During the last four quarters, the Jack in the Box brand has increased its franchised restaurant unit count by 76 units while the unit count of company-owned restaurants has fallen by 75 units. With an intent to lower the ownership of company-owned restaurants to less than 10% of the total unit count, the company has been refranchising its company-owned restaurants. During the quarter, the company has refranchised 58 company-owned restaurants, which took the ownership of company-owned restaurants to approximately 15%. Year-to-date, the company has renfranchised 118 restaurants while opening two company-owned restaurants and 15 franchised restaurants. However, during the same period, management has closed 11 company-owned restaurants and six franchised restaurants. Also, the company has repurchased 50 underperforming franchised restaurants since the beginning of 2017.
Qdoba Mexican Grill
By fiscal 3Q17, Qdoba Mexican Eats operated 381 company-owned restaurants and 339 franchised restaurants.
During the last four quarters, Qdoba has increased the unit count of company-owned restaurants by 37 while the unit count of franchised restaurants has fallen by five units. Since the beginning of 2017, the brand has opened 18 new company-owned restaurants while closing four. During the same period, the brand has opened 13 new franchised restaurants while closing six underperforming restaurants.
During the last four quarters, Wendy’s (WEN) and McDonald’s (MCD) have increased their units by 74 and 507, respectively. The unit count of Tim Hortons and Burger King—operating under the umbrella of Restaurant Brands International (QSR)—has increased by 191 units and 900 units, respectively.
Next, we’ll look at EBIT margins for Jack in the Box.