Yahoo Finance Jack in the Box (JACK) Expands Del Taco Footprint in Florida
Jack in the Box Inc. JACK, the parent company of Del Taco, continues to bolster its market presence with the opening of a new Del Taco location in Tallahassee, FL. This expansion, spearheaded by franchise organization Consolidated Taco Holdings, marks Del Taco’s tenth location in the state.
The strategic location at 2410 Apalachee Parkway offers residents modern amenities such as a drive-thru lane and contactless delivery pickup stations, catering to the increasing demands for convenience. The new restaurant showcases Del Taco’s commitment to quality, featuring freshly prepared dishes with high-quality ingredients like grilled carne asada steak, house-grated cheddar cheese and hand-chopped pico de gallo.
This move is part of a broader expansion strategy by Jack in the Box, following another recent opening in DeFuniak Springs. By increasing its footprint in Florida, particularly in the state capital, Jack in the Box aims to capture a larger share of the fast-growing Mexican quick-service restaurant market. The Fresh Flex design not only attracts customers with its vibrant, modern aesthetics but also streamlines operations, potentially boosting profitability.
The expansion aligns with Jack in the Box’s growth objectives, leveraging the strong demand for fresh, high-quality Mexican cuisine. As the second-largest Mexican quick service restaurant chain in the nation, Del Taco’s continued growth in key markets like Florida is expected to drive increased revenues and strengthen Jack in the Box market position. Investors can anticipate this strategic expansion to contribute positively to Jack in the Box financial performance and market share.
During second-quarter fiscal 2024, the company refranchised 13 Del Taco Restaurants with a new franchisee that includes a development agreement for 10 additional restaurants. It also has an agreement in place to franchise an additional 27 restaurants that are expected to close in the third quarter. Also, the company announced agreements to expand operations in Atlanta and Greensboro, NC. JACK remains on track to refranchise 40 to 60 restaurants in 2024, aiming to have Del 90% franchised by the end of 2025.
Shares of this Zacks Rank #3 (Hold) company have declined 28.9% in the past three months , compared with the industry’s decrease of 6.5%.
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