Jack in the Box - Competitor Analysis

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COMPETITVE ANALYSIS

Jack In the Box

Market Performance

Jack in the Box is one of the nation’s fast food hamburger chains, operating and franchising more than 2,600 quick-service and fast-casual restaurants in the brand name. According to Business and Company Resources Center database “The Company has around 2,212 Jack in the Box restaurants in 18 states, of which 1,190 were company-operated and 1,022 were franchise-operated.”

In fiscal 2009, Jack in the Box sold 109 company- operated restaurants to franchisees, with gains on sale totaling $66.3 million. In spite of the tightening of the credit markets, the number of restaurants sold and the gains on sale exceeded the company’s guidance for fiscal year 2008. Over the last three years, Jack in the box has refranchised 267 restaurants and increased franchised ownership from 25% to 38% of the system.

Financial Performance

Ratios | 2009| 2008| 2007| 2006| 2005 |
Current| .89| 1.11| .70| 1.19| 1.03|
Quick| .30| .37| .17| .78| .45|
R.O.A (%)| .08| .08| .09| .07| .07|
R.O.E (%)| .23| .26| .30| .15| .16|
Total Debt to Equity | 1.78| 2.28| 2.33| 1.14| 1.37|

Liquidity Ratios provide information about a firm's ability to meet is short-term financial obligations. The current ratio is a measure of current assets to current liabilities. The current ratio fluctuates throughout the five year span; having the highest ratio at 1.19 in 2006 and 11.1 in 2008.  

An alternative measure of liquidity is the quick ratio, it removes inventory from current assets. Profitability Ratios offer several different measures of success of the firm at generating profits. R.O.A measures how effectively the firm's assets are being used to generate profits. In 2007 the rate went up to .09 but then dropped back down in 2008 and 2009 with a rate of .08. R.O.E is the bottom line measure for the stockholders, measuring the profits for each dollar invested in the firm’s stock. 2007...
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