From the CC:
Brian Brittner, Analyst, Oppenheimer: Okay. Thank you. And my follow-up is just on the Jack on Track strategy and specifically the real estate sales of potential $100,000,000 over the next fiscal year. How did you decide on that dollar amount figure without knowing the final result of the Del Taco strategic review? I was assuming that the Del Taco dynamic could have an impact on the amount of real estate sales you may have been targeting.
So if you could just help us better understand the $100,000,000 and how that got constructed.
Lance Tucker, Chief Executive Officer, Jack in the Box: Absolutely. And really the way you should think about that $100,000,000 is kind of an at least $100,000,000 The way I’m thinking we’re going to use the real estate sales is really is the balancer, so very similar I think to what your expectation was as I heard you explain it. We’ll see where the Del Taco process lands. We’ll also see what cash we’re able to accumulate. The other means a little bit less CapEx spend, etcetera, what our operating results look like, all those things.
We know we’ll want to sell at least $100,000,000 of real estate. And then beyond that, we’ll kind of wait and see....
.... Rachel Webb, Vice President of Finance and Investor Relations, Jack in the Box0: All right. Thanks for putting me in. I want to ask on the remodels. I know it’s early to talk about the new program, but kinda curious what the franchisee interest looked like on the original program when you
Aryan Razai, Analyst, Guggenheim: kinda set that up and sort of what the franchisee conversation looked like?
Lance Tucker, Chief Executive Officer, Jack in the Box: You know, Alex, it was it was actually very favorable. We, you know, kinda I don’t remember if it was this time last year or maybe a little bit earlier in the year in 2024, we went out and said that the company is going to do a significant contribution, of $50,000,000 and we’re only able to touch about 300 to 400 restaurants with that contribution. And we took applications for it and we had, as I recall, over 1,000 applications. And so the interest was really high. So what we’re going to do here, I think when you look at our system, honestly, touching 300 to 400 restaurants isn’t nearly enough when you look at across our system.
So we are going to attempt to touch an additional 1,000, which honestly ought to get us to a spot where we’ve touched the vast majority of the system when we’re finished with it. And it’ll be a meaningful contribution from corporate. I’m not ready to give the exact numbers quite yet. We’ll do that in November. But you can look and say, well, gosh, we did $50,000,000 before and it touched 300 to 400,000,000 So if you’re looking for kind of a guidepost, that would at least give you a feel for what an additional contribution would look like....
The suits talk a good game. How much of it will filter down to the store level? |
