Foodmaker (Jack-in-the-Box Restaurants) Message Board

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Non-Tech : Foodmaker (Jack-in-the-Box Restaurants)

FM 27.19

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Jan 8 4:00 PM EST

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To: Arnie Doolittle who wrote (251)	11/7/1997 10:47:00 AM
From: David Kuspa	Read Replies (1) of 338

Highlights from the conference call, cross-posting from AOL's Motley Fool: >>Subject: Highlights of Conference Call Date: Thu, Nov 6, 1997 5:30 AM From: Dtflas Message-id: <19971106133001.IAA24226@ladder02.news.aol.com> Here are some highligts of yesterday's conference call (which can be heard today by calling 800-633-8284 reservation number 3269546 from 12:30 to 2:30 PST) In the near term the Co. is going to focus on improving customer service and improved products. They plan to spend 20-25,000 per store to improve customer service. They didn't say exactly what they paln to do but my sources (for what that is worth) tell me that the Co. intends to update its drive-through ordering system by having some type of screen at the drive through that reads back the customers order. Advertising is to focus on sourdough Jack, ultimate cheesburger, and spicy chicken sandwhich. Plan to open 20-25 stores per quarter, 100 for this year and next. Stay in core areas of Cal and Texas with increased presence in Las Vegas and Portland. Pre-opening costs are amortized over a year period. Bulk of new stores are to be open in the 3rd and 4th quarter. G&A expenses were down this quarter due to higher bad debt expense last year and $1 million charge last year realted to asset write off. New store performance expects to be at or above existing stores with lower margins in the beginning. Vons litigation has been moved back to Jan. 26, 1998 - believes this to be reasonably firm. Debt is less by 350 million, will refinance 125 million this quarter at lower rate. Could do much more - depends on settlement/litigation with Vons. Doesn't believe that 99 cent discount an be maintained by industry. There appears to be a push in the industry to raise prices. Labor costs were actually lower this quarter by 20 basis points. Beef prices were a little higher. Three tests markets are currently in use testing higher prices to see if there is a fall off in demand - Fresno, Beaumont and onr other city in Texas. Internally are known as "Coolest Hamburger Chain" may start to put this theme in their advertising. Currently looking into 12 other states for expansion over 4 to 5 years. Expect 20% growth in EPS a year. At this time no interest in expanding internationally unles they can find the right partner. Going to have a new burger called the "Jacks Biggest" somewaht of a double ultimate burger. Jeffries and Co. yesterday reiterated its buy rating yesterday with a 12-month price target of 22. Hope this helps - Good luck.<<

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