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Stock impact report

More than a rough patch: Recent restaurant closures signal market correction [Yahoo! Finance]

Jack In The Box Inc. (JACK) 
Last jack in the box inc. earnings: 2/19 04:05 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Wendy's, Pizza Hut, Jack in the Box and other restaurant brands have recently closed stores, raising questions about the industry's health. Analysts say the closures are the inevitable result of years of dwindling traffic and mounting cost pressures in a market that has simply grown too crowded. “The restaurant space has been tough. There's a lot of competition, so it's a very saturated market to begin with,” said Victor Fernandez, chief insights officer at Black Box Intelligence. In addition to ballooning food and labor costs, operators are dealing with higher insurance premiums, further straining their finances, said Ari Felhandler, an equity analyst covering the consumer sector at Morningstar. At the same time, the industry has remained stubbornly reliant on value promotions , further squeezing margins. With same-store sales under constant pressure , fixed costs such as rent and energy have begun eating a larger share of revenue — a dynamic especially painful for those already Show less Read more
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