Jack in the Box (JACK) Partners With Qu for Digital Revolution

Jack in the Box Inc. JACK has unveiled a strategic partnership with Qu, a leading unified commerce platform, to modernize its restaurant infrastructure. Leveraging Qu's enterprise cloud platform, Jack in the Box aims to achieve 20% digital sales by 2026. The collaboration signifies JACK's commitment to innovation and growth in the highly competitive QSR market.

Through Qu's cloud-native POS and open architecture, Jack in the Box will introduce a slew of digital enhancements, including AI-enabled voice ordering, digital menu boards and personalized in-store ordering. This move aligns with Jack in the Box's vision for a seamless, omnichannel ordering experience across its 2,800 restaurants in 27 states.

The partnership with Qu provides Jack in the Box with a stable technology foundation to support its digital transformation roadmap. Qu's frequent software releases and API-friendly approach ensure the rapid deployment of new capabilities, facilitating continuous innovation in the years to come.

Crucially, Qu's platform offers speed, scale and multi-brand support, addressing the diverse needs of Jack in the Box's portfolio, which includes both Jack in the Box and Del Taco brands. With a shared architecture, menu structure and reporting infrastructure, Qu streamlines operations and enhances efficiency across all channels.

As Jack in the Box embarks on this journey of digital transformation, investors can anticipate enhanced customer experiences, increased operational efficiency, and ultimately, sustained growth in digital sales. The partnership with Qu solidifies Jack in the Box’s position as a frontrunner in the evolving QSR landscape.

Stock Performance

In the past six months, shares of the company have lost 5% against the industry’s increase of 15%. The decline can be primarily attributed to high costs.

During first-quarter fiscal 2024, Del Taco restaurant level margin contracted 50 basis points (bps) year over year to 15.6% due to wage and utility inflation, as well as a change in the mix of restaurants. Labor cost (as a percentage of sales) increased 100 bps year over year to 35.2%, mainly due to wage inflation, which amounted to approximately 3.2% in the quarter. Occupancy and other operating expenses rose 70 bps year over year to 22.2%, primarily driven by higher utility costs and a change in the mix of restaurants.

Zacks Rank & Key Picks

JACK currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Retail-Wholesale sector have been discussed below.

Abercrombie & Fitch Co. ANF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

It has a trailing four-quarter earnings surprise of 715.6%, on average. The stock has risen 356.9% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and earnings per share (EPS) implies growth of 5.6% and 19.1%, respectively, from the year-ago levels.

Burlington Stores, Inc. BURL currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 10.1%, on average. The stock has risen 4.7% in the past year.

The Zacks Consensus Estimate for BURL’s fiscal 2024 sales and EPS indicates a rise of 10.2% and 22.3%, respectively, from the year-ago levels.

The Gap, Inc. GPS currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 180.9%, on average. The stock has risen 150.2% in the past year.

The Zacks Consensus Estimate for GPS’ fiscal 2024 sales and EPS implies a decline of 0.3% and 4.9%, respectively, from the year-ago levels.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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