In a not so unexpected move, Jack in the Box has named interim CEO Lance Tucker its permanent chief executive, just a little over a month after the former head of the company resigned.
While Tucker’s restaurant experience is broad and he’s previously held chief financial officer positions with Jack in the Box and other dining chains, a CEO post will be a first for him. Tucker rejoined Jack in the Box as head of finance in January; he previously held the position from 2018 to 2020 and before that worked several years for Papa John’s.
Jack in the Box Chairman of the Board Dave Goebel highlighted Tucker’s deep experience in a statement he made about the appointment.
“Lance brings decades of experience within the restaurant industry as well as a financial mind into the CEO role that is well-timed to match with the company’s current priorities,” he said “We are confident that Lance will position our company to perform at high levels, and drive returns that shareholders expect from our iconic brands and profitable business model.”
Tucker replaces Darin Harris, who had been the company’s chief executive since 2020. He left to take a new position outside of the restaurant industry.
During a recent earnings call in February, Wall Street analysts got a taste of Tucker’s expectations for the coming year as it relates to new store development. The chain had increasingly moved toward trimming the number of company-owned and operated restaurants in favor of growing its franchised locations.
“I do think there is a place for company store builds. And there are some places where we’re going to be investing alongside franchisees, particularly in new markets,” he said during the call. “With that said, I think we’re an asset light company. And the plan is not to be leading the growth with corporate builds.”
Given Tucker’s extensive experience with restaurant chains, he has the wherewithal to be a capable, smart chief executive, says San Diego restaurant analyst John Gordon. But the jury’s still out on how well he can execute given the keen competition, especially in California, Gordon adds.
In addition to the Jack in the Box restaurants, the San Diego-based company also owns Del Taco, the second-largest Mexican American fast-food restaurant chain in the U.S.
“He’s a very fine financial executive, but the question is whether he can get Jack in the Box and Del Taco restarted with franchisee growth,” Gordon said. “Their unit count growth is practically zero. It’s because of cost of construction in California is very expensive, and we also have a $20 minimum wage (for fast food workers) in California. Competition here is also fierce, especially so with In-N-Out and, to a lesser degree, Chick-fil-A.
“It’s just that his record as CEO of a primarily franchised company is untested.
According to the company’s SEC filings, total Jack in the Box outlets numbered 2,241 in 2020. By last year, the total had fallen slightly to 2,191.
As new CEO, Tucker will earn a base salary of $925,000, a slight boost from the $900,000 he was to earn when appointed interim chief executive. In addition, he will receive a yearly bonus of 115% of his base salary if he meets certain performance goals. Tucker also will get a cash payment of $500,000 for relocation assistance and housing expenses.