Investment Thesis
With no room for overseas expansion, Jack in the Box Inc. (JACK) is under pressure to boost revenue as U.S. fast-food chains are locked in a battle to defend their domestic market share. Notwithstanding the declining margins, the value-focused strategy has lifted JACK's same-store sales growth to a record high. Even though the revenue outlook for fast-food chains remains solid in a cooling U.S. economy, more pressure on margins is likely for JACK amid deep discounting required to sustain the comp growth, wage inflation, and franchisee incentives. However, the recent refinancing