Dive Brief:
- Jack in the Box CFO and Executive Vice President Tim Mullany will resign from his position effective Feb. 2, the company said Monday. He is leaving for personal reasons.
- Dawn Hooper, vice president, controller and financial reporting, has assumed a temporary position as principal financial officer while the company searches for a replacement.
- Mullany joined Jack in the Box January 2021 and led its $575 million acquisition of Del Taco in December 2021.
Dive Insight:
Mullany will leave the chain on relatively sound footing. Systemwide sales for both Jack in the Box and Del Taco during fiscal Q4 2022 were up 4.1% and 4.2%, respectively, according to an earnings release. The company is also on a growth trajectory. It relaunching franchising in 2021, and expects to have positive net unit growth for fiscal year 2023. The company also plans to sell its company-owned Del Taco restaurants, which make up about half of Del Taco’s 600-unit system. These efforts will lead to a more asset-light company.
Jack in the Box’s buyout of Del Taco for $575 million in 2021 was Mullany’s biggest contribution to the company during his two-year tenure. After three full quarters under Jack in the Box management, the brand has been attracting new franchisees, especially ones that are interested in Del Taco’s Fresh Flex prototype. During the fourth quarter, franchisees signed 11 new development agreements, with new franchisees committing to build 79 units across 12 states, CEO Darin Harris said during the company’s November earnings call.
Several other chains have brought on new CFOs during the last year. Krispy Kreme recently hired a Mars exec as its new CFO, who will start early next year. Red Robin and Kura Sushi USA also brought on new CFOs within the last three months. KFC’s CFO Trip Vornholt, along with two other executives, said in October that Vornholt would retire in November due to rising interest rates impacting the company’s pension fund.
