Jack in the Box Inc. (NASDAQ:JACK) Q4 2017 Earnings Conference Call Transcript

Nov 30, 2017 • 11:30 am ET

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Jack in the Box Inc. (NASDAQ:JACK) Q4 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, everyone and welcome to the Jack in the Box Incorporated Fourth Quarter Fiscal 2017 Earnings Conference Call. Today's call is being broadcast live over the Internet. A replay of the call will be available on the Jack in the Box corporate website starting today. (Operator Instructions)

At this time for opening remarks and introductions, I would like to turn the call over to Carol DiRaimo, Chief Investor Relations and Corporate Communications Officer for Jack in the Box. Please go ahead.

Executive
Carol DiRaimo

Thank you, Natalie, and good morning, everyone. Joining me on the call today are Chairman and CEO, Lenny Comma; and EVP and CFO, Jerry Rebel.

In our comments this morning, per share amounts refer to diluted earnings per share and operating earnings per share is defined as diluted EPS from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Our comments include non-GAAP measures including operating EPS, restaurant operating margin and franchise margin. Please refer to reconciliations included in our earnings release. Following today's presentation, we will take questions from the financial community.

(Forward-Looking Cautionary Statements) A few calendar items to note. Jack in the Box management plans to attend the ICR conference in Orlando in January and our first quarter ends on January 1, and we tentatively plan to announce results on Wednesday, February 21 after the market close. Our conference call is tentatively scheduled to be held at 8:30 AM Pacific Time on Thursday, February 22.

And with that, I will turn the call over to Lenny.

Executive
Lenny Comma

Thank you, Carol, and good morning. As we noted in yesterday's news release, our Board of Directors with the assistance of Morgan Stanley, has made substantial progress in its evaluation of potential alternatives with respect to Qdoba as well as other ways to enhance shareholder value. There can be no assurance that the evaluation process will result in any transaction or other specific course of action. We will not be taking any questions on this matter today and appreciate your continued patience. With that back drop, I'd like to use my time this morning to talk about the initiatives now underway or plan for fiscal 2018 to regain momentum in a highly competitive environment, while Jerry will add a little color around the fourth quarter results we reported yesterday.

Let's start with Jack in the Box. We are acutely aware that our competitors will remain extremely focused on value with the focus on price points below $5. When it comes to product promotions, expect us to deliver a consistent message on everyday value that leverages our unique capability of offering our entire menu throughout the day. To that end, in January, we will launch an LTO, featuring single and bundled products with multiple price points, ranging from $1 to $5. We won't completely stray from our higher quality positioning, like the 100% Ribeye Burger which was introduced in October, but our value promotion will be our primary message on media. Although our performance for