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Non-Tech : Foodmaker (Jack-in-the-Box Restaurants)
FM 27.190.0%Jan 8 4:00 PM EST
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To: David Kuspa who wrote (23)2/17/1997 11:08:00 AM
From: Arnie Doolittle   of 338
 
Hi, David. Here's a mini-update on the annual meeting.
1. FM's goal is to increase market share via Signature samdwiches using co-branding and the kid's meal program. Kid's meal visits are higher pr ticket sales cuz the little rascals come in with mom and dad. Kid's meal sales exceeded company expectations.
2. The pasta no worka.
3. In-house Mexican entries are currently in testing at two San Diego locations. IMHO this will be a winner because Mexican food has already been established as a fast food winner.
4. Price competition will continue.
5. Management is comfortable with $.75 - $.80 analysts' forecast for the current year.
6. Beyond the current year, growth will continue with the company seeing the possibility of 40-50 more JITB in Portland, OR and 25-30 more in Las Vegas. No plans to open new markets.
7. Von's law suit going to trial in July.
8. Minimum wage increases will continue to plague the fast food industry for the next 15 months or so. (My opinion is that the industry will finally cry "Uncle" and increase prices on the low end. Discounting will still be there but at a higher price than today. Given MCD's domestic situation and labor costs in general, something will give and IMHO it won't be further earnings erosion.)
9. Margin improvements will continue but only minimally so.


Arnie
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