MCD - Jack In The Box: Hold Until More Clarity On New Strategy
Investment Thesis
After premium products drove down comparable sales in the first seven weeks, Jack in the Box (NASDAQ: JACK) in the middle of the first quarter of the current financial year (FY19 Q1) has shifted to a more value-based approach. The new strategy, which will continue for the remainder of the year, arrested the slide in comp sales with minimal or no impact on the gross margin.
With comp sales growth and profitability being crucial in winning over the powerful stakeholder group, the franchise-operators, the future earnings releases will bring more clarity