However, analyst R.J. Hottovy of stock-research firm Morningstar warns that Jack’s competitors are much bigger. McDonald’s, Burger King, and Wendy’s/Arby’s Group control three-fourths of the U.S. fast-food business. Jack has to hustle.
In the most recent quarter, same-store sales at Carlsbad’s Rubio’s Restaurants were up 1.9 percent. However, the number of transactions fell by 5.8 percent. That was offset by the average check coming in 8.2 percent higher. With its prices rising in a weak environment, the company says it fears a “loss of price-sensitive customers.” That could include Xers and Yers. Last year, same-store sales were down 2.4 percent, and transactions were down 5.7 percent.
Bottom line, it appears that companies only aiming for the Generation X and Y markets may have to find ways to reach us creaky old folks. But I, for one, will never participate in motocross or play a casino-style game at a sports bar. Most of us Depression babies feel the same way, I suspect.