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“On average, it only cost about $700,000 to build a Qdoba restaurant. So clearly a much lower investment of capital than it is to build a Jack in the Box restaurant, so it, I think, explains our strategy of why are we devoting more capital for the Qdoba side. And the other point I’ll mention is at $1 million AUV, Qdoba still has very nice cash flow margins in that 18% kind of range. As they accelerate, the stores that can get into $1.3 million, $1.4 million, those EBITDA margins accelerate into the mid ’20s pretty dramatically, again, because of the fixed cost structure.”
“I think Taco Bell has done a great job with their new Doritos Locos Tacos. It’s a great new product for them and it’s obviously driving sales. Jack in the Box is going to respond with our own innovation that’s going to drive our loyal guests back into our restaurants more often. But we’re not going to necessarily try to copycat what they’re doing with their tacos, and especially because tacos for us is our #1 selling item. We sell more units of tacos than any other item on the menu. And even with the Doritos Locos Tacos launch, we haven’t lost any of our sales in our tacos. So we wouldn’t want to mirror exactly what they’re doing, but we’d want to respond in a way that’s just going to drive traffic sort of Jack’s way.”[Advertising] “So let’s talk a little bit about the relationship we have with Secret Weapon. They’re a very unique firm out of Santa Monica, California that only covers or represents 3 companies at a time. And our relationship with them has been exceptional over the years.”