Stock of San Diego's Jack in the Box fast-food chain leapt 10.46% today (Aug. 7) to $61.25. The company, bolstered by booming sales of late-night and breakfast offerings, reported third-quarter earnings of 65 cents a share, 8 points better than Wall Street analysts expected.

The company raised its forecast for the year to a range of $2.38 a share to $2.45, topping the earlier estimate of $2.25 to $2.35. The stock zoomed almost 75% last year.

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Comments

shirleyberan Aug. 7, 2014 @ 4:44 p.m.

Goes to show ya, don't underestimate how many drunks and loadies are out in the middle of the night lining up for fast "food".

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aardvark Aug. 7, 2014 @ 6:19 p.m.

If I read another story correctly, the vast majority of the sales increase was thanks to the Qdoba fast-casual restaurant chain they own.

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Don Bauder Aug. 7, 2014 @ 10:03 p.m.

aardvark: Yes, Jack said Qdoba is doing better. Frankly, that's a surprise to me, but improvements may have been made. Best, Don Bauder

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Don Bauder Aug. 7, 2014 @ 10:02 p.m.

shirleyberan: Yes, drunks at night, but early-risers headed to work in the morning. It takes all kinds. Best, Don Bauder

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Ponzi Aug. 7, 2014 @ 9:45 p.m.

I will load up on this stock if marijuana is legalized in California. The food is crap, but there's no shortage of people who will eat their slop.

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Don Bauder Aug. 7, 2014 @ 10:08 p.m.

Ponzi: A couple of warnings: this stock is not cheap. It has had a helluva run and sells for more than 40 times earnings. Second, better check how the Jacks are doing in Washington and Colorado before you conclude the business will run in tandem with cannabis sales. (I know you know these two points already -- just tossing it in.) Best, Don Bauder

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Ponzi Aug. 8, 2014 @ 8:02 a.m.

Good points, Don. I was rather joking. I don't eat at Jack's or most of the fast food places. El Pollo Loco went public and their stock doubled over a few days. Investors seem to be going crazy over fast service food stocks. Chipotle has gone from $400 a share to $665 in one year. Are we in a fast food bubble?

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Don Bauder Aug. 8, 2014 @ 7:02 p.m.

Ponzi: Chipotle stock has been crazy for quite awhile -- so crazy that my wife and I decided to eat a lunch there. Not impressive. Fast food stocks have had previous wacko runups. Best, Don Bauder

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Visduh Aug. 8, 2014 @ 8:34 a.m.

Both Taco Bell and Jack in the Box are making some pointed pitches for those who get hungry around or after midnight. While there have always been night owls who are out and about during the wee hours, there's more to this story. It has been alluded to above. That is the matter of how cannabis users get hungry after sessions of smoking the stuff. For those who indulge in the evening, the urge to eat comes at the end of the evening. The recent legalization of the stuff (the weed, not the food) in two states seems to have triggered this marketing appeal. But plenty of it is consumed illegally or quasi-legally elsewhere, and the users in such locales also get hungry, or so the story goes.

To respond to Ponzi, I'd say fast food stocks are definitely overvalued now, but those stocks have plenty of company in other sectors. If that's the definition of a bubble, then yes, we are in a fast food bubble.

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Ponzi Aug. 8, 2014 @ 12:27 p.m.

This commercial advertises a “Munchie Meal” targeted to late night dinning. Set with bean bag chairs, a lava lamp and other ‘70’s retro décor, she appears high talking about having elbows for ears evidently caused by some mind altering substance. Yes, this is not so subtle marketing giving a nod to the change in the social attitudes and trying to capitalize on the hunger for munchies after consuming cannabis.

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Don Bauder Aug. 9, 2014 @ 8:01 a.m.

Ponzi: You and Visduh made points that went right over my head. I thought you were kidding, but you both were apparently right on target. Clearly, there is a demographic (age) gap. I know nothing about that marijuana culture, or any aspect of the drug culture.

Or is this picture photoshopped, and you are pulling my withered old leg? Best, Don Bauder

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Don Bauder Aug. 11, 2014 @ 6:48 a.m.

Ponzi: Maybe you weren't pulling my leg. Those who comment sure think she is stoned. Best, Don Bauder

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Don Bauder Aug. 8, 2014 @ 7:06 p.m.

Visduh: Stocks are overvalued but bonds are potentially more overvalued. Some categories of stocks are wacko. Fast food is getting there. It's a dangerous market, but blue chip stocks with good yields still seem to me to be the best buys now, even though they are overvalued. When interest rates are as low as they are, it is hard for an investor to shun stocks. Best, Don Bauder

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Visduh Aug. 8, 2014 @ 8:48 p.m.

My investing philosophy exactly. And those blue chips have the best prospects of weathering/surviving a downturn, so where else to look?

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Don Bauder Aug. 9, 2014 @ 8:06 a.m.

Visduh: Of course, there are risks. Here I am preaching for rooftop solar, but if it could be accomplished economically, it would bite severely into utility profits. Down goes my portfolio. Will oil be the fuel of the future? Pharmaceuticals have their problems. There is always a reason why certain stocks have attractive yields: they are not attractive to certain (usually institutional) investors (gamblers, really). Best, Don Bauder

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CaptainObvious Aug. 8, 2014 @ 11:18 a.m.

Is "pink slime" back under a different name?

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Don Bauder Aug. 8, 2014 @ 7:08 p.m.

CaptainObvious: In the last ten years or so, I have been almost forced by circumstances to eat at fast food places about three times. Each time, I ate pink slime and hated it. Best, Don Bauder

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Visduh Aug. 8, 2014 @ 8:56 p.m.

Geez, what invective. Almost daily I eat something from a fast food "value menu" for lunch. (Almost never for breakfast, never for dinner.) But I'm not overindulging or stuffing myself with calories.

You're talking about the pink slime as though it was something like Soylent Green. (Look that up in your search engine.)

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CaptainObvious Aug. 9, 2014 @ 7:48 a.m.

I'd rather eat Soylent Green. Pink slime is a way to turn gargbage into gold.

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Don Bauder Aug. 9, 2014 @ 8:21 a.m.

CaptainObvious: I guess I am going to have to look up Soylent Green. Can it wait until this afternoon? Best, Don Bauder

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Don Bauder Aug. 9, 2014 @ 8:08 a.m.

Visduh: This blog is devoted to invective. It's what keeps us going. No namby-pamby opinions here. I will look up Soylent Green. Best, Don Bauder

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Don Bauder Aug. 9, 2014 @ 8:27 a.m.

SOYLENT GREEN -- OUR FUTURE. I did look up soylent green, and the movie with the same name. The world is choked with pollution, searing in heat caused by greenhouse gases, overpopulated. Miserable people eat -- ugh -- soylent green. Thanks for tipping me off. Maybe I should get a DVD of the movie, because I fear we may come to that -- some time after I am dead and buried, though. Best, Don Bauder

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CaptainObvious Aug. 9, 2014 @ 4:56 p.m.

never look up a great movie before you watch it. One of Heston's best

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Burwell Aug. 9, 2014 @ 10:43 p.m.

Omega Man was also one of Heston's best.

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Don Bauder Aug. 10, 2014 @ 12:51 p.m.

Burwell: I haven't even heard of Omega Man, but, then, I am hopeless when it comes to movies and popular culture. Best, Don Bauder

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Don Bauder Aug. 10, 2014 @ 12:50 p.m.

CaptainObvious: I have a friend who knew Heston when he was a budding actor. He was called Chuck Heston. Best, Don Bauder

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shirleyberan Aug. 9, 2014 @ 5:01 p.m.

Didn't flag. The 101st and last for Edward G Robinson.

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shirleyberan Aug. 10, 2014 @ 12:16 p.m.

Didn't flag again. This is just a guess but soilent might taste like Robinson or Bauder.

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Don Bauder Aug. 10, 2014 @ 12:52 p.m.

shirleyberan: How do you know what Bauder and Robinson taste like? Best, Don Bauder

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shirleyberan Aug. 10, 2014 @ 2:20 p.m.

I said I never ate soilent old guys and you said it wasn't possible this year.

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shirleyberan Aug. 11, 2014 @ 5:37 a.m.

Donny - what do you taste like? You should know. Certainly not chicken.!!

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