Jack disappoints

Jack in the Box earnings drop sharply.

Fourth quarter earnings of Jack in the Box were 39 cents a share, down 44.9% from a year earlier, and below analysts' expectations. Revenue dropped 2.5%. The stock dropped 9 cents to $26.17 on the day.

Comments

Maybe some new commercials would help. The ongoing series with the clown head has become very stale. It doesn't connect anymore.

None

by dwbat

Dave: Those of us who can remember that campaign -- a good one -- are revealing our age. Best, Don Bauder

Dwbat. You may be right. But the company has had very god ads through the years. Best, Don Bauder

Jack's CEO attributes the company's problems to high unemployment and low earnings in its customer demographic. I went to Jack in the Box a year or so ago when they were offering the Bonus Jack with Jack's secret sauce as a promotion. None of the stores I visited were willing to sell Bonus Jacks even though they were on the menu. A similar situation occurred in the 1970s when Jack was selling burgers made with Kangaroo meat. I tried to buy a 'Roo burger but the line at the store was almost a mile long. By the time I got to the counter the 'Roo burgers were sold out. Fisticuffs broke out when the meat ran out.

Burwell: Jack Goodall, CEO of Jack during the kangaroo meat controversy, told me he was going to sue the U-T for writing about it. Best, Don Bauder

Jack Goodall was the idito behind the Dale Akiki witch hunt that cost DA Edwin Miller his job-and rightly so-it also cost the taxpayers of San Diego over $5 million in settlements and other costs for the botched witch hunt that lasted 3 years and had Dale Akiki locked up in County the entire time. Thank God Kate Coyne was a comptetent and smart Public Defender.

SP: Yes, it was Goodall who convinced Miller to keep pursuing this case, according to numerous sources. This was a shame, because Miller was an excellent DA and had been a very good U.S. Attorney, too. The Akiki case was a blot on Miller's record. Best, Don Bauder

It was much more than a blot-it was a legacy destroying move. I did NOT know Miller was also US Attorney here, what years, do you recall???

I'd suppose Miller was US Atty here before his long tenure as DA. What I am really curious about is whatever happened to Goodall. If he was the sort of person who could get so worked up about imaginary crimes, was he at all effective as a CEO? This thing about 'roo meat is all news to me, and I'm happy that is. What were they thinking about?

I agree with SurfPup that Miller's insistence on that wrongheaded prosecution utterly destroyed the legacy of all the good he may have fostered in his two decades as DA. And that is despite the dismal record we have had with electing successors to Miller. Bad to worse (Pfingst) to worst (Dumanis.) Can it slip even farther? Yes it can, and may well do that.

Visduh: What I remember about Goodall as CEO of Jack in the Box is that he loaded it with debt to do a leveraged buyout from Ralston Purina, which had purchased it. Then he piled even more debt on to buy a Mexican chain. (Not the same one it now owns.) Jack had a a big load of junk debt for a long time. Best, Don Bauder

Typical LBO, a ton of debt that keeps the enterprise struggling and unable to properly maintain its operation for years. I'd guess that most LBOs lead to failure of the business, and if JIB avoided that it was a great success story.

Visduh: You are right. LBOs are a scam. Most of the companies who get loaded with debt as a result of the takeover either struggle or die. The private equity groups and corporate insiders prosper, though, because they paid themselves huge dividends so they didn't have to plunk much if any of their own money into the purchase. Bain Capital, the quintessential malefactor of these deals, is an example. Best, Don Bauder

SP: I believe Miller was U.S. Attorney and then was replaced when Nixon won. Then he became DA and stayed in the post for decades. I have written about this for the Reader (maybe 9 years ago) so you could probably find it by going to the search box. Best, Don Bauder

Interesting.... before my time in SD.....

SP: Yes, Miller was once U.S. Attorney. If you want to read how corrupt San Diego was before your time, read my Reader piece of June 12, 2003. You can get to it by putting bauder + ed miller in the search box. Best, Don Bauder

Typical LBO, a ton of debt that keeps the enterprise struggling and unable to properly maintain its operation for years. I'd guess that most LBOs lead to failure of the business, and if JIB avoided that it was a great success story.

Romeny and Bain did exactly this to KB Toys...............

SurfPup: Bain and Romney destroyed more than one company while lining their own pockets. Best, Don Bauder

What I don't understand i show they can legally get away with giving out FUTURE dividends, to Romney and other insiders, while looting the company and loading it up with debt.

The Congress allows it b/c they are paid off, but this is shameful.

Rockefeller, Morgan and Carnegie and their companies were ALL busted up, for unfair trade and monopoly practices, by teddy Roosevelt, we need him today, not another McKinley type. teddy Roosevelt was a repug also, how ironic.

SurfPup: I agree 100%. We need a Teddy Roosevelt. Best, Don Bauder

When I first saw this article I thought it was a review of Jack in the Box. That would have been much funnier.

metapunk: Since Jack in the Box was a leveraged buyout from Ralston Purina, loading up the balance sheet with junk debt in the process, the colloquy drifted to Bain Capital quite naturally. Best, Don Bauder

Log in to comment

Skip Ad