Jack in the Box is appointing Taylor Montgomery as its president, effective September 14, in a move that sets the stage for him to become CEO. The company expects Montgomery to take the CEO post “within the next 12 months,” as the permanent successor to Lance Tucker, who left the brand in May and was replaced by Board Chair Mark King on an interim basis.
Montgomery joins the ailing burger chain from Yum Brands, where he worked for more than a decade, including more than two years as Taco Bell’s chief marketing officer and about a year as its global chief brand officer, according to his LinkedIn profile.
Jack in the Box likely hopes Montgomery can bring with him some of the marketing magic that kept Taco Bell ahead of its QSR rivals’ same-store sales over the last few years. According to the press release, Montgomery was instrumental in spearheading initiatives including Live Más LIVE, a yearly marketing event that shows off the chain’s menu innovation, and the launch of the Cantina Chicken menu at Taco Bell.
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Those changes helped Taco Bell sustain sales momentum. Jack in the Box may adopt a similar promotional strategy, but its prior efforts to adapt Taco Bell’s tactics yielded ambiguous results.
As president and likely CEO, Montgomery will be focused “on driving sustainable sales growth, improving franchisee profitability, and positioning the Company for long-term success,” according to the press release. Jack in the Box has seen significant sales erosion and is in the process of closing more than 100 underperforming locations.
These issues drew attention from activist investors, including Steak n’ Shake’s owner Sardar Biglari, who helped organize an effort to push out then-Board Chair David Goebel earlier this year. Goebel survived the ouster attempt but resigned in favor of King.
Montgomery is joining Jack in the Box at a moment of major change for the brand. The chain has undertaken a number of changes to stabilize sales, including a limited program to refresh the curb appeal and cleanliness of its restaurants. King said on the chain’s fiscal Q3 earnings call that “while many refreshes are relatively modest investments, we’ve seen consistent evidence that generate meaningful, low-single-digit sales lifts and perhaps more importantly, improve the overall guest experience through a better look and feel.”
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The burger brand is also developing a new campaign meant to engage new and lapsed customers, King said. It is also testing a new burger platform. Early results of the burger test “have been encouraging,” King said, adding that the chain is “highlighting premium, higher-quality ingredients, a juicier burger patty, new ingredient prep and presentation and new packaging.”
A broader rollout of the burger is expected next year. Jack in the Box is also reducing its number of promotions per quarter from three to two, and is working to simplify operations generally. While these efforts have yet to return Jack in the Box to same-store sales growth, the severity of its sales decline has moderated.
The chain saw a decline in its fiscal Q3 quarter, according to its earnings release, compared to a drop in the same quarter a year prior.