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Last week, Hedgeye held its bi-annual Best Ideas call for institutional clients. On the call, we discussed our top ideas from each sector that we cover. We’re presenting each idea in a series of videos starting today with Restaurants Sector Head Howard Penney’s bullish call on Jack In The Box (JACK).

It’s important to note that Penney cautions against running out and buying JACK before they report on November 20. The company has several characteristics that make it attractive including stable cash flow and growth opportunity in the form of Qdoba. Jack In The Box remains the company’s mature concept while Qdoba has significant growth ahead of it. JACK also has upgraded its core asset base so capital expenditures are declining and behind the company going forward.

Watch the video we’ve posted for Penney’s full take on Jack In The Box.