Jack in the Box Inc. Reports Fourth Quarter and Full-Year 2024 Earnings
Jack in the Box Inc. reported Q4 2024 financial results showing declining same-store sales for both brands. Jack in the Box same-store sales decreased 2.1% in Q4 and 1.3% for FY 2024, while Del Taco saw decreases of 3.9% in Q4 and 1.5% for FY 2024. Total revenues declined 6.2% to $349.3 million. Despite sales challenges, the company achieved significant growth milestones, with Jack in the Box opening 30 restaurants in FY 2024, the highest since 2012. Del Taco refranchised 47 restaurants and is now nearly 80% franchised. The company provided FY 2025 guidance with Operating EPS expected at $5.05-$5.45 and Adjusted EBITDA of $288-$303 million.
Jack in the Box Inc. ha riportato i risultati finanziari del quarto trimestre 2024, evidenziando una diminuzione delle vendite a negozi comparabili per entrambi i marchi. Le vendite a negozi comparabili di Jack in the Box sono diminuite del 2,1% nel quarto trimestre e dell'1,3% per l'intero anno fiscale 2024, mentre Del Taco ha registrato una diminuzione del 3,9% nel quarto trimestre e dell'1,5% per l'anno fiscale 2024. Il fatturato totale è diminuito del 6,2%, scendendo a 349,3 milioni di dollari. Nonostante le sfide nelle vendite, l'azienda ha raggiunto traguardi significativi, con l'apertura di 30 ristoranti Jack in the Box nell'anno fiscale 2024, il numero più alto dal 2012. Del Taco ha refranchisato 47 ristoranti ed è ora quasi all'80% franchised. L'azienda ha fornito indicazioni per l'anno fiscale 2025, previsto un EPS operativo compreso tra 5,05 e 5,45 dollari e un EBITDA rettificato tra 288 e 303 milioni di dollari.
Jack in the Box Inc. reportó los resultados financieros del cuarto trimestre de 2024, mostrando una disminución en las ventas de restaurantes comparables para ambas marcas. Las ventas de restaurantes comparables de Jack in the Box disminuyeron un 2,1% en el cuarto trimestre y un 1,3% para el año fiscal 2024, mientras que Del Taco vio caídas del 3,9% en el cuarto trimestre y del 1,5% para el año fiscal 2024. Los ingresos totales cayeron un 6,2%, alcanzando los 349,3 millones de dólares. A pesar de los desafíos en las ventas, la empresa logró hitos de crecimiento significativos, con Jack in the Box abriendo 30 restaurantes en el año fiscal 2024, la cifra más alta desde 2012. Del Taco refranchizó 47 restaurantes y ahora está cerca del 80% en franquicias. La empresa proporcionó orientación para el año fiscal 2025, con un EPS operativo esperado entre 5,05 y 5,45 dólares y un EBITDA ajustado de 288 a 303 millones de dólares.
Jack in the Box Inc.는 2024년 4분기 재무 결과를 보고하며 두 브랜드 모두 동종 매장 매출이 감소했다고 밝혔다. Jack in the Box의 동종 매장 매출은 4분기에 2.1% 감소했고, 2024 회계연도에는 1.3% 감소했습니다. 한편, Del Taco는 4분기에 3.9% 감소하고 2024 회계연도에 1.5% 감소했습니다. 총 수익은 6.2% 감소하여 3억 4천 9백 30만 달러에 달했습니다. 판매의 어려움에도 불구하고 회사는 의미 있는 성장 이정표를 달성했으며, Jack in the Box는 2024 회계연도에 30개의 레스토랑을 새로 열어 2012년 이후 가장 높은 수치를 기록했습니다. Del Taco는 47개의 레스토랑을 프랜차이즈로 전환했으며 현재 80%가 프랜차이즈입니다. 회사는 2025 회계연도에 대한 가이던스를 제공했으며, 운영 EPS는 5.05달러에서 5.45달러 사이, 조정 EBITDA는 2억 8천 8백만 달러에서 3억 3백만 달러로 예상됩니다.
Jack in the Box Inc. a rapporté les résultats financiers du quatrième trimestre 2024, montrant une baisse des ventes à magasins comparables pour les deux marques. Les ventes à magasins comparables de Jack in the Box ont diminué de 2,1% au quatrième trimestre et de 1,3% pour l'exercice 2024, tandis que Del Taco a constaté une baisse de 3,9% au quatrième trimestre et de 1,5% pour l'exercice 2024. Les revenus totaux ont baissé de 6,2%, atteignant 349,3 millions de dollars. Malgré les défis de vente, l'entreprise a atteint des jalons de croissance significatifs, avec l'ouverture de 30 restaurants Jack in the Box au cours de l'exercice 2024, le chiffre le plus élevé depuis 2012. Del Taco a refranchisé 47 restaurants et est désormais presque à 80% franchisé. L'entreprise a fourni des prévisions pour l'exercice 2025, avec un EPS opérationnel attendu entre 5,05 et 5,45 dollars et un EBITDA ajusté de 288 à 303 millions de dollars.
Jack in the Box Inc. hat die finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht und zeigt einen Rückgang der vergleichbaren Verkaufszahlen für beide Marken. Die vergleichbaren Verkaufszahlen von Jack in the Box sanken im vierten Quartal um 2,1% und um 1,3% im gesamten Geschäftsjahr 2024, während Del Taco Rückgänge von 3,9% im vierten Quartal und 1,5% im Geschäftsjahr 2024 verzeichnete. Der Gesamtumsatz fiel um 6,2% auf 349,3 Millionen Dollar. Trotz der Verkaufsherausforderungen erreichte das Unternehmen bedeutende Wachstumsmeilensteine, indem Jack in the Box im Geschäftsjahr 2024 30 Restaurants eröffnete, was die höchste Zahl seit 2012 ist. Del Taco franchisierte 47 Restaurants und ist nun fast zu 80% franchisiert. Das Unternehmen gab eine Prognose für das Geschäftsjahr 2025 ab, mit einem erwarteten operativen EPS von 5,05 bis 5,45 Dollar und einem bereinigten EBITDA von 288 bis 303 Millionen Dollar.
- Jack in the Box achieved highest restaurant openings (30) since 2012
- Net positive unit growth for both brands in FY 2024
- 101 development agreements signed for 464 total restaurants
- Del Taco secured 70 new restaurant commitments in FY 2024
- Operating EPS increased to $1.16 from $1.10 year-over-year in Q4
- Same-store sales declined 2.1% for Jack in the Box in Q4 2024
- Del Taco same-store sales decreased 3.9% in Q4 2024
- Total revenues decreased 6.2% to $349.3 million in Q4
- Jack in the Box Restaurant-Level Margin declined to 18.5% from 20.7%
- Del Taco Restaurant-Level Margin fell to 9.3% from 14.8%
Insights
The Q4 results paint a challenging picture for JACK with declining same-store sales across both brands. Jack in the Box saw a
The bright spot lies in development, with 44 new restaurants opened in FY2024 and positive net unit growth. The company's expansion into Chicago and Detroit, plus a growing development pipeline of 464 committed restaurants, suggests long-term growth potential despite near-term headwinds. However, FY2025 guidance indicates continued pressure with flat to modest SSS growth and margin challenges from wage increases and inflation.
The transaction decline across both brands amid price increases signals weakening consumer demand in the QSR segment. The company's aggressive expansion strategy, particularly into new markets like Chicago and Detroit, comes at a challenging time when existing stores are struggling with traffic. The refranchising of Del Taco locations (now
The
Jack in the Box same-store sales of (
Del Taco same-store sales of (
Jack in the Box and Del Taco opened 44 restaurants in FY 2024, including net positive unit growth and a growing development pipeline for both brands
Jack in the Box opened 30 restaurant openings in FY 2024, the highest openings since 2012, and completed 60 restaurant site approvals in FY 2024, the highest since 2010
Del Taco refranchised 47 restaurants in FY 2024, including development commitments for 42 new restaurants, and is now nearly
Jack in the Box expecting to have 8 restaurants open in
Jack in the Box signed franchise development agreement during Q1 to enter
“I am very pleased we achieved our gross opening targets for both Jack in the Box and Del Taco in fiscal 2024, reflecting a level of growth not seen in over a decade, and also with the significant progress on our digital initiatives and POS rollout,” said Darin Harris, Jack in the Box Chief Executive Officer. “We managed well through a difficult top-line macro environment in 2024, and will continue to aggressively pursue initiatives to help energize sales and traffic in 2025.”
Jack in the Box Performance
Same-store sales decreased
Jack in the Box had 16 new restaurant openings and 20 restaurant closures during the fourth quarter. For fiscal year 2024, Jack in the Box opened 30 new restaurants, and was net positive 5 restaurants. As of the end of the fourth quarter, and since the launch of the development program in mid-2021, the company has signed 101 agreements for a total of 464 restaurants, with 51 already opened to date. During the fourth quarter, Jack in the Box announced an agreement with a new franchisee for 12 restaurants in the
Restaurant-Level Margin(3), was
Franchise-Level Margin(3), was
Jack in the Box Same-Store Sales:
|
12 Weeks Ended |
|
52 Weeks Ended |
||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
Company |
(2.2)% |
|
|
|
|
|
|
Franchise |
(2.0)% |
|
|
|
(1.5)% |
|
|
System SSS |
(2.1)% |
|
|
|
(1.3)% |
|
|
Jack in the Box Restaurant Counts(2):
|
2024 |
|
2023 |
||||||||||||||
|
Company |
|
Franchise |
|
Total |
|
Company |
|
Franchise |
|
Total |
||||||
Store count at beginning of FY |
142 |
|
|
2,044 |
|
|
2,186 |
|
|
146 |
|
|
2,035 |
|
|
2,181 |
|
New |
8 |
|
|
22 |
|
|
30 |
|
|
2 |
|
|
18 |
|
|
20 |
|
Refranchised |
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
|
5 |
|
|
— |
|
Closed |
— |
|
|
(25 |
) |
|
(25 |
) |
|
(1 |
) |
|
(14 |
) |
|
(15 |
) |
Store count at end of Q4 |
150 |
|
|
2,041 |
|
|
2,191 |
|
|
142 |
|
|
2,044 |
|
|
2,186 |
|
Net Unit Increase/ (Decrease) |
8 |
|
|
(3 |
) |
|
5 |
|
|
|
|
|
|
|
|||
Q4 2024 vs. Q4 2023 Unit % Decrease |
5.6 |
% |
|
(0.1 |
)% |
|
0.2 |
% |
|
|
|
|
|
|
|||
Del Taco Performance
Same-store sales decreased
Del Taco had 2 new restaurant openings and 5 restaurant closures during the fourth quarter. For fiscal year 2024, Del Taco opened 14 new restaurants, and was net positive 2 restaurants. Del Taco signed 70 total restaurant commitments in fiscal year 2024, with 42 commitments directly resulting from refranchising transactions.
Restaurant-Level Margin(3), was
Franchise-Level Margin(3), was
Del Taco Same-Store Sales:
|
12 Weeks Ended |
|
52 Weeks Ended |
||||
|
September 29, 2024 |
|
October 1, 2023 |
|
September 29, 2024 |
|
October 1, 2023 |
Company |
(3.0)% |
|
(1.4)% |
|
(1.3)% |
|
|
Franchise |
(4.2)% |
|
(1.5)% |
|
(1.6)% |
|
|
System |
(3.9)% |
|
(1.5)% |
|
(1.5)% |
|
|
Del Taco Restaurant Counts:
|
2024 |
|
2023 |
||||||||||||||
|
Company |
|
Franchise |
|
Total |
|
Company |
|
Franchise |
|
Total |
||||||
Store count at beginning of FY |
171 |
|
|
421 |
|
|
592 |
|
|
290 |
|
|
301 |
|
|
591 |
|
New |
3 |
|
|
11 |
|
|
14 |
|
|
— |
|
|
14 |
|
|
14 |
|
Acquired from franchisees |
10 |
|
|
(10 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Refranchised |
(47 |
) |
|
47 |
|
|
— |
|
|
(111 |
) |
|
111 |
|
|
— |
|
Closed |
(4 |
) |
|
(8 |
) |
|
(12 |
) |
|
(8 |
) |
|
(5 |
) |
|
(13 |
) |
Store count at end of Q4 |
133 |
|
|
461 |
|
|
594 |
|
|
171 |
|
|
421 |
|
|
592 |
|
Net Unit Increase/ (Decrease) |
(38 |
) |
|
40 |
|
|
2 |
|
|
|
|
|
|
|
|||
Q4 2024 vs. Q4 2023 Restaurant % Decrease |
(22.2 |
)% |
|
9.5 |
% |
|
0.3 |
% |
|
|
|
|
|
|
|||
Company-Wide Performance
Total revenues decreased
SG&A expense for the fourth quarter of 2024 was
Restaurant impairment charges for the fourth quarter of 2024 were
Adjusted EBITDA(5), was
Net earnings was
Diluted earnings per share was
(1) Systemwide sales include company and franchised restaurant sales.
(2) The restaurant count includes 6 cloud kitchens opened during fiscal year 2024.
(3) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results."
(4) Operating Earnings Per Share represents diluted earnings per share on a GAAP basis excluding certain amounts. See "Reconciliation of Non-GAAP Measurements to GAAP Results." Operating earnings per share may not add due to rounding.
(5) Adjusted EBITDA represents net earnings on a GAAP basis excluding certain amounts. See "Reconciliation of Non-GAAP Measurements to GAAP Results."
Capital Allocation
The company repurchased 0.3 million shares of common stock in the fourth quarter of 2024. For the full year 2024, the company repurchased 1.1 million shares, for an aggregate cost of
On November 14, 2024, the Board of Directors declared a cash dividend of
Guidance & Outlook
The following guidance and underlying assumptions reflect the company’s current expectations for the fiscal year ending September 28, 2025:
FY 2025 Company-wide Guidance
-
Capital Expenditures of
$105 -$115 million -
SG&A of
$160 -$170 million -
G&A, excluding selling and advertising, is expected to be 2.3
-2.5% of systemwide sales
-
G&A, excluding selling and advertising, is expected to be 2.3
-
Depreciation & Amortization of
$58 -$60 million -
Share Repurchases of approximately
$20 million -
Adjusted/Operating EPS Tax Rate of ~
27.5% -
Adjusted EBITDA of
$288 -$303 million -
Operating EPS of
$5.05 -$5.45 - Includes dilutive impact from refranchising 13 Del Taco restaurants in Q1
FY 2025 Jack in the Box Segment Guidance
-
Same Store Sales of flat to +
1% vs. FY 2024 - 35-45 gross restaurant openings
-
Company-Owned Restaurant Level Margin of 20
-22% - Reflecting the impact of a full year of AB1228 wage increases, higher utility costs, and low single digit commodity inflation
-
Franchise Level Margin of 40
-41%
FY 2025 Del Taco Segment Guidance
-
Same Store Sales approximately flat to -
1.0% vs. FY 2024 - 15-20 gross restaurant openings
-
Company-Owned Restaurant Level Margin of 9
-11% - Reflecting the impact of a full year of AB1228 wage increases, higher utility costs, and mid single digit commodity inflation
-
Franchise Level Margin of 25
-26%
Conference Call
The company will host a conference call for analysts and investors on Wednesday, November 20, 2024, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the Investors section of the Jack in the Box company website at http://investors.jackinthebox.com. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days. The call can be accessed via phone by dialing (888) 596-4144 and using ID 7573961.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in
Category: Earnings
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the company's brand; increased regulatory and legal complexities, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.
JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited) |
|||||||||||||||
|
12 Weeks Ended |
|
52 Weeks Ended |
||||||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Company restaurant sales |
$ |
151,417 |
|
|
$ |
174,967 |
|
|
$ |
709,035 |
|
|
$ |
846,278 |
|
Franchise rental revenues |
|
87,281 |
|
|
|
85,993 |
|
|
|
375,428 |
|
|
|
364,591 |
|
Franchise royalties and other |
|
54,463 |
|
|
|
55,173 |
|
|
|
238,170 |
|
|
|
240,515 |
|
Franchise contributions for advertising and other services |
|
56,129 |
|
|
|
56,391 |
|
|
|
248,673 |
|
|
|
240,922 |
|
|
|
349,290 |
|
|
|
372,524 |
|
|
|
1,571,306 |
|
|
|
1,692,306 |
|
Operating costs and expenses, net: |
|
|
|
|
|
|
|
||||||||
Food and packaging |
|
42,974 |
|
|
|
51,037 |
|
|
|
199,271 |
|
|
|
250,836 |
|
Payroll and employee benefits |
|
53,022 |
|
|
|
57,051 |
|
|
|
238,047 |
|
|
|
274,598 |
|
Occupancy and other |
|
32,532 |
|
|
|
35,353 |
|
|
|
139,305 |
|
|
|
163,273 |
|
Franchise occupancy expenses |
|
57,675 |
|
|
|
55,799 |
|
|
|
245,379 |
|
|
|
229,602 |
|
Franchise support and other costs |
|
4,374 |
|
|
|
3,705 |
|
|
|
17,281 |
|
|
|
12,328 |
|
Franchise advertising and other services expenses |
|
58,930 |
|
|
|
60,658 |
|
|
|
259,131 |
|
|
|
253,533 |
|
Selling, general and administrative expenses |
|
30,033 |
|
|
|
43,708 |
|
|
|
143,233 |
|
|
|
172,872 |
|
Depreciation and amortization |
|
13,570 |
|
|
|
13,827 |
|
|
|
59,776 |
|
|
|
62,287 |
|
Pre-opening costs |
|
1,264 |
|
|
|
718 |
|
|
|
3,182 |
|
|
|
1,385 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
162,624 |
|
|
|
— |
|
Other operating expense, net |
|
8,453 |
|
|
|
5,702 |
|
|
|
24,796 |
|
|
|
10,837 |
|
Gains on the sale of company-operated restaurants |
|
(4,639 |
) |
|
|
(7,675 |
) |
|
|
(3,255 |
) |
|
|
(17,998 |
) |
|
|
298,188 |
|
|
|
319,883 |
|
|
|
1,488,770 |
|
|
|
1,413,553 |
|
Earnings from operations |
|
51,102 |
|
|
|
52,641 |
|
|
|
82,536 |
|
|
|
278,753 |
|
Other pension and post-retirement expenses, net |
|
1,579 |
|
|
|
1,608 |
|
|
|
6,843 |
|
|
|
6,967 |
|
Interest expense, net |
|
18,525 |
|
|
|
18,279 |
|
|
|
80,016 |
|
|
|
82,446 |
|
Earnings before income taxes |
|
30,998 |
|
|
|
32,754 |
|
|
|
(4,323 |
) |
|
|
189,340 |
|
Income taxes |
|
9,056 |
|
|
|
10,857 |
|
|
|
32,372 |
|
|
|
58,514 |
|
Net earnings (loss) |
$ |
21,942 |
|
|
$ |
21,897 |
|
|
$ |
(36,695 |
) |
|
$ |
130,826 |
|
|
|
|
|
|
|
|
|
||||||||
Net earnings (loss) per share: (1) |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.13 |
|
|
$ |
1.09 |
|
|
$ |
(1.87 |
) |
|
$ |
6.35 |
|
Diluted |
$ |
1.12 |
|
|
$ |
1.08 |
|
|
$ |
(1.87 |
) |
|
$ |
6.30 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
19,348 |
|
|
|
20,153 |
|
|
|
19,572 |
|
|
|
20,603 |
|
Diluted |
|
19,510 |
|
|
|
20,337 |
|
|
|
19,572 |
|
|
|
20,764 |
|
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share |
$ |
0.44 |
|
|
$ |
0.44 |
|
|
$ |
1.76 |
|
|
$ |
1.76 |
|
___________________________ |
|
(1) |
Earnings (loss) per share may not add due to rounding |
JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) |
|||||||
|
September 29,
|
|
October 1,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
24,745 |
|
|
$ |
157,653 |
|
Restricted cash |
|
29,422 |
|
|
|
28,254 |
|
Accounts and other receivables, net |
|
83,567 |
|
|
|
99,678 |
|
Inventories |
|
3,922 |
|
|
|
3,896 |
|
Prepaid expenses |
|
13,126 |
|
|
|
16,911 |
|
Current assets held for sale |
|
16,493 |
|
|
|
13,925 |
|
Other current assets |
|
10,002 |
|
|
|
5,667 |
|
Total current assets |
|
181,277 |
|
|
|
325,984 |
|
Property and equipment, at cost: |
|
|
|
||||
Land |
|
93,950 |
|
|
|
92,007 |
|
Buildings |
|
963,699 |
|
|
|
968,221 |
|
Restaurant and other equipment |
|
171,436 |
|
|
|
166,714 |
|
Construction in progress |
|
49,445 |
|
|
|
31,647 |
|
|
|
1,278,530 |
|
|
|
1,258,589 |
|
Less accumulated depreciation and amortization |
|
(848,491 |
) |
|
|
(846,559 |
) |
Property and equipment, net |
|
430,039 |
|
|
|
412,030 |
|
Other assets: |
|
|
|
||||
Operating lease right-of-use assets |
|
1,410,083 |
|
|
|
1,397,555 |
|
Intangible assets, net |
|
10,515 |
|
|
|
11,330 |
|
Trademarks |
|
283,500 |
|
|
|
283,500 |
|
Goodwill |
|
161,209 |
|
|
|
329,986 |
|
Other assets, net |
|
259,006 |
|
|
|
240,707 |
|
Total other assets |
|
2,124,313 |
|
|
|
2,263,078 |
|
|
$ |
2,735,629 |
|
|
$ |
3,001,092 |
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of long-term debt |
$ |
35,880 |
|
|
$ |
29,964 |
|
Current operating lease liabilities |
|
162,017 |
|
|
|
142,518 |
|
Accounts payable |
|
69,494 |
|
|
|
84,960 |
|
Accrued liabilities |
|
166,868 |
|
|
|
302,178 |
|
Total current liabilities |
|
434,259 |
|
|
|
559,620 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt, net of current maturities |
|
1,699,433 |
|
|
|
1,724,933 |
|
Long-term operating lease liabilities, net of current portion |
|
1,286,415 |
|
|
|
1,265,514 |
|
Deferred tax liabilities |
|
13,612 |
|
|
|
26,229 |
|
Other long-term liabilities |
|
153,708 |
|
|
|
143,123 |
|
Total long-term liabilities |
|
3,153,168 |
|
|
|
3,159,799 |
|
Stockholders’ deficit: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
828 |
|
|
|
826 |
|
Capital in excess of par value |
|
533,818 |
|
|
|
520,076 |
|
Retained earnings |
|
1,866,660 |
|
|
|
1,937,598 |
|
Accumulated other comprehensive loss |
|
(57,475 |
) |
|
|
(51,790 |
) |
Treasury stock, at cost, 63,996,399 and 62,910,964 shares, respectively |
|
(3,195,629 |
) |
|
|
(3,125,037 |
) |
Total stockholders’ deficit |
|
(851,798 |
) |
|
|
(718,327 |
) |
|
$ |
2,735,629 |
|
|
$ |
3,001,092 |
|
JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||
|
52 Weeks Ended |
||||||
|
September 29, 2024 |
|
October 1, 2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net (loss) earnings |
$ |
(36,695 |
) |
|
$ |
130,826 |
|
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
59,776 |
|
|
|
62,287 |
|
Amortization of franchise tenant improvement allowances and incentives |
|
4,998 |
|
|
|
4,647 |
|
Deferred finance cost amortization |
|
4,830 |
|
|
|
5,040 |
|
Excess tax deficiency from share-based compensation arrangements |
|
51 |
|
|
|
71 |
|
Deferred income taxes |
|
(10,812 |
) |
|
|
(11,989 |
) |
Share-based compensation expense |
|
13,471 |
|
|
|
11,205 |
|
Pension and postretirement expense |
|
6,843 |
|
|
|
6,967 |
|
Gains on cash surrender value of company-owned life insurance |
|
(16,480 |
) |
|
|
(7,346 |
) |
Gains on the sale of company-operated restaurants |
|
(3,255 |
) |
|
|
(17,998 |
) |
Gains on acquisition of restaurants |
|
(2,702 |
) |
|
|
— |
|
Losses (gains) on the disposition of property and equipment, net |
|
185 |
|
|
|
(8,171 |
) |
Impairment charges and other |
|
171,415 |
|
|
|
6,217 |
|
Changes in assets and liabilities, excluding acquisitions and dispositions: |
|
|
|
||||
Accounts and other receivables |
|
19,905 |
|
|
|
(4,048 |
) |
Inventories |
|
(25 |
) |
|
|
1,367 |
|
Prepaid expenses and other current assets |
|
(297 |
) |
|
|
(1,422 |
) |
Operating lease right-of-use assets and lease liabilities |
|
22,705 |
|
|
|
2,364 |
|
Accounts payable |
|
(15,404 |
) |
|
|
(1,692 |
) |
Accrued liabilities |
|
(135,159 |
) |
|
|
47,459 |
|
Pension and postretirement contributions |
|
(5,937 |
) |
|
|
(6,241 |
) |
Franchise tenant improvement allowance and incentive disbursements |
|
(2,486 |
) |
|
|
(3,265 |
) |
Other |
|
(6,111 |
) |
|
|
(1,272 |
) |
Cash flows provided by operating activities |
|
68,816 |
|
|
|
215,006 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(115,474 |
) |
|
|
(74,954 |
) |
Proceeds from the sale and leaseback of assets |
|
1,728 |
|
|
|
3,673 |
|
Proceeds from the sale of company-operated restaurants |
|
19,400 |
|
|
|
85,221 |
|
Proceeds from the sale of property and equipment |
|
24,975 |
|
|
|
25,214 |
|
Other |
|
— |
|
|
|
3,065 |
|
Cash flows (used in) provided by investing activities |
|
(69,371 |
) |
|
|
42,219 |
|
Cash flows from financing activities: |
|
|
|
||||
Borrowings on revolving credit facilities |
|
6,000 |
|
|
|
— |
|
Repayments of borrowings on revolving credit facilities |
|
— |
|
|
|
(50,000 |
) |
Principal repayments on debt |
|
(29,892 |
) |
|
|
(30,109 |
) |
Dividends paid on common stock |
|
(33,972 |
) |
|
|
(35,890 |
) |
Proceeds from issuance of common stock |
|
2 |
|
|
|
263 |
|
Repurchases of common stock |
|
(70,000 |
) |
|
|
(90,029 |
) |
Payroll tax payments for equity award issuances |
|
(3,323 |
) |
|
|
(1,593 |
) |
Cash flows used in financing activities |
|
(131,185 |
) |
|
|
(207,358 |
) |
Net (decrease) increase in cash and restricted cash |
|
(131,740 |
) |
|
|
49,867 |
|
Cash and restricted cash at beginning of year |
|
185,907 |
|
|
|
136,040 |
|
Cash and restricted cash at end of year |
$ |
54,167 |
|
|
$ |
185,907 |
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
|||||||||||
The following table presents certain income and expense items included in our consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding. |
|||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA (Unaudited) |
|||||||||||
|
12 Weeks Ended |
|
52 Weeks Ended |
||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||
Revenues: |
|
|
|
|
|
|
|
||||
Company restaurant sales |
43.3 |
% |
|
47.0 |
% |
|
45.1 |
% |
|
50.0 |
% |
Franchise rental revenues |
25.0 |
% |
|
23.1 |
% |
|
23.9 |
% |
|
21.5 |
% |
Franchise royalties and other |
15.6 |
% |
|
14.8 |
% |
|
15.2 |
% |
|
14.2 |
% |
Franchise contributions for advertising and other services |
16.1 |
% |
|
15.1 |
% |
|
15.8 |
% |
|
14.2 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
Operating costs and expenses, net: |
|
|
|
|
|
|
|
||||
Food and packaging (1) |
28.4 |
% |
|
29.2 |
% |
|
28.1 |
% |
|
29.6 |
% |
Payroll and employee benefits (1) |
35.0 |
% |
|
32.6 |
% |
|
33.6 |
% |
|
32.4 |
% |
Occupancy and other (1) |
21.5 |
% |
|
20.2 |
% |
|
19.6 |
% |
|
19.3 |
% |
Franchise occupancy expenses (2) |
66.1 |
% |
|
64.9 |
% |
|
65.4 |
% |
|
63.0 |
% |
Franchise support and other costs (3) |
8.0 |
% |
|
6.7 |
% |
|
7.3 |
% |
|
5.1 |
% |
Franchise advertising and other services expenses (4) |
105.0 |
% |
|
107.6 |
% |
|
104.2 |
% |
|
105.2 |
% |
Selling, general and administrative expenses |
8.6 |
% |
|
11.7 |
% |
|
9.1 |
% |
|
10.2 |
% |
Depreciation and amortization |
3.9 |
% |
|
3.7 |
% |
|
3.8 |
% |
|
3.7 |
% |
Pre-opening costs |
0.4 |
% |
|
0.2 |
% |
|
0.2 |
% |
|
0.1 |
% |
Goodwill impairment |
— |
% |
|
— |
% |
|
10.3 |
% |
|
— |
% |
Other operating expense, net |
2.4 |
% |
|
1.5 |
% |
|
1.6 |
% |
|
0.6 |
% |
Gains on the sale of company-operated restaurants |
(1.3 |
)% |
|
(2.1 |
)% |
|
(0.2 |
)% |
|
(1.1 |
)% |
Earnings from operations |
14.6 |
% |
|
14.1 |
% |
|
5.3 |
% |
|
16.5 |
% |
Income tax rate (5) |
29.2 |
% |
|
33.1 |
% |
|
(748.9 |
)% |
|
30.9 |
% |
___________________________ |
|
| (1) | As a percentage of company restaurant sales. |
| (2) | As a percentage of franchise rental revenues. |
| (3) | As a percentage of franchise royalties and other. |
| (4) | As a percentage of franchise contributions for advertising and other services. |
| (5) | As a percentage of earnings from operations and before income taxes. |
Jack in the Box systemwide sales (in thousands):
|
12 Weeks Ended |
|
52 Weeks Ended |
||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||
Company-operated restaurant sales |
$ |
95,718 |
|
$ |
95,297 |
|
$ |
427,057 |
|
$ |
413,748 |
Franchised restaurant sales (1) |
|
899,882 |
|
|
917,288 |
|
|
3,969,200 |
|
|
4,005,985 |
Systemwide sales (1) |
$ |
995,600 |
|
$ |
1,012,585 |
|
$ |
4,396,257 |
|
$ |
4,419,733 |
Del Taco systemwide sales (in thousands):
|
12 Weeks Ended |
|
52 Weeks Ended |
||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||
Company-operated restaurant sales |
$ |
55,699 |
|
$ |
79,670 |
|
$ |
281,978 |
|
$ |
432,530 |
Franchised restaurant sales (1) |
|
164,243 |
|
|
147,808 |
|
|
674,804 |
|
|
541,913 |
Systemwide sales (1) |
$ |
219,942 |
|
$ |
227,478 |
|
$ |
956,782 |
|
$ |
974,443 |
___________________________ |
|
(1) |
Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. Systemwide sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and systemwide restaurant sales information is useful to investors as they have a direct effect on the company's profitability. |
JACK IN THE BOX INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)
To supplement the consolidated financial statements, which are presented in accordance with GAAP, the company uses the following non-GAAP measures: Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin.
Management believes that these measurements, when viewed with the company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the company's core business without regard to potential distortions.
Operating Earnings Per Share
Operating Earnings Per Share represents diluted earnings per share on a GAAP basis excluding integration and strategic initiatives, COLI (gains) losses, net, pension and post-retirement benefit costs, goodwill impairment, asset impairment, gains on the sale of company-operated restaurants, gain on acquisition of restaurants, gains on the sale of real estate to franchisees, excess tax shortfall from share-based compensation arrangements, and the tax-related impacts of the above adjustments.
Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under
Below is a reconciliation of Non-GAAP Adjusted Net Income to the most directly comparable GAAP measure of net income. Also below is a reconciliation of Non-GAAP Operating Earnings Per Share to the most directly comparable GAAP measure, diluted earnings per share:
|
12 Weeks Ended |
|
52 Weeks Ended |
||||||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||||||
Net income (loss), as reported |
$ |
21,942 |
|
|
$ |
21,897 |
|
|
$ |
(36,695 |
) |
|
$ |
130,826 |
|
Integration and strategic initiatives (1) |
|
1,019 |
|
|
|
3,753 |
|
|
|
15,631 |
|
|
|
9,112 |
|
Net COLI (gains) losses (2) |
|
(5,101 |
) |
|
|
1,194 |
|
|
|
(14,390 |
) |
|
|
(5,953 |
) |
Pension and post-retirement benefit costs (3) |
|
1,579 |
|
|
|
1,608 |
|
|
|
6,843 |
|
|
|
6,967 |
|
Goodwill impairment (4) |
|
— |
|
|
|
— |
|
|
|
162,624 |
|
|
|
— |
|
Restaurant impairment charges (5) |
|
7,872 |
|
|
|
237 |
|
|
|
8,008 |
|
|
|
5,236 |
|
Gains on the sale of company-operated restaurants |
|
(4,639 |
) |
|
|
(7,675 |
) |
|
|
(3,255 |
) |
|
|
(17,998 |
) |
Gain on acquisition of restaurants (6) |
|
(345 |
) |
|
|
— |
|
|
|
(2,702 |
) |
|
|
— |
|
Gains on sale of real estate to franchisees |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
(9,467 |
) |
Excess tax shortfall from share-based compensation arrangements |
|
46 |
|
|
|
— |
|
|
|
51 |
|
|
|
71 |
|
Tax impact of adjustments (7) |
|
194 |
|
|
|
1,392 |
|
|
|
(13,457 |
) |
|
|
10,202 |
|
Non-GAAP Adjusted Net Income |
$ |
22,567 |
|
|
$ |
22,406 |
|
|
$ |
122,657 |
|
|
$ |
128,996 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted-average shares outstanding - GAAP |
|
19,510 |
|
|
|
20,337 |
|
|
|
19,572 |
|
|
|
20,764 |
|
Diluted weighted-average shares outstanding - non-GAAP (8) |
|
19,510 |
|
|
|
20,337 |
|
|
|
19,774 |
|
|
|
20,764 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share |
$ |
1.12 |
|
|
$ |
1.08 |
|
|
$ |
(1.86 |
) |
|
$ |
6.30 |
|
Integration and strategic initiatives (1) |
|
0.05 |
|
|
|
0.18 |
|
|
|
0.79 |
|
|
|
0.44 |
|
Net COLI (gains) losses (2) |
|
(0.26 |
) |
|
|
0.06 |
|
|
|
(0.73 |
) |
|
|
(0.29 |
) |
Pension and post-retirement benefit costs (3) |
|
0.08 |
|
|
|
0.08 |
|
|
|
0.35 |
|
|
|
0.34 |
|
Goodwill impairment (4) |
|
— |
|
|
|
— |
|
|
|
8.22 |
|
|
|
— |
|
Restaurant impairment charges (5) |
|
0.40 |
|
|
|
0.01 |
|
|
|
0.40 |
|
|
|
0.25 |
|
Gains on the sale of company-operated restaurants |
|
(0.24 |
) |
|
|
(0.38 |
) |
|
|
(0.16 |
) |
|
|
(0.87 |
) |
Gain on acquisition of restaurants (6) |
|
(0.02 |
) |
|
|
— |
|
|
|
(0.14 |
) |
|
|
— |
|
Gains on sale of real estate to franchisees |
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
(0.46 |
) |
Excess tax shortfall from share-based compensation arrangements |
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
Tax impact of adjustments (7) |
|
0.01 |
|
|
|
0.07 |
|
|
|
(0.68 |
) |
|
|
0.49 |
|
Operating Earnings Per Share – non-GAAP (9) |
$ |
1.16 |
|
|
$ |
1.10 |
|
|
$ |
6.20 |
|
|
$ |
6.21 |
|
___________________________ |
|
(1) |
Integration and strategic initiatives reflect charges that are not part of our ongoing operations, including consulting fees for discrete project-based strategic initiatives that are not expected to recur in the foreseeable future. |
(2) |
Net COLI (gains) losses reflect market-based adjustments on the company-owned life insurance policies which support our non-qualified benefit plans. |
(3) |
Pension and post-retirement benefit costs are the gains and losses relating to our two legacy defined benefit pension plans, as well as our two legacy post-retirement plans. |
(4) |
Goodwill impairment charges recognized on the Del Taco reporting unit in the third quarter of 2024. |
(5) |
Restaurant impairment charges relates to impairments for property and equipment, net, and right of use assets. |
(6) |
Relates to the gains on acquisition of Del Taco restaurants in |
(7) |
Tax impacts for the quarter calculated based on the non-GAAP Operating EPS tax rate of |
(8) |
The non-GAAP diluted weighted-average shares outstanding amounts include those securities that would be dilutive in the respective period that have a net loss for GAAP purposes, but have net income for non-GAAP purposes. |
(9) |
Operating Earnings Per Share - non-GAAP may not add due to rounding. |
Adjusted EBITDA
Adjusted EBITDA represents net earnings (loss) on a GAAP basis excluding income taxes, interest expense, net, gains on the sale of company-operated restaurants, other operating expenses, net, goodwill impairment, depreciation and amortization, amortization of cloud computing costs, amortization of favorable and unfavorable leases and subleases, net, amortization of franchise tenant improvement allowances and incentives, COLI (gains) losses, net, and pension and post-retirement benefit costs.
Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under
Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings (in thousands):
|
12 Weeks Ended |
|
52 Weeks Ended |
||||||||||||
|
September 29,
|
|
October 1,
|
|
September 29,
|
|
October 1,
|
||||||||
Net earnings (loss) - GAAP |
$ |
21,942 |
|
|
$ |
21,897 |
|
|
$ |
(36,695 |
) |
|
$ |
130,826 |
|
Income taxes |
|
9,056 |
|
|
|
10,857 |
|
|
|
32,372 |
|
|
|
58,514 |
|
Interest expense, net |
|
18,525 |
|
|
|
18,279 |
|
|
|
80,016 |
|
|
|
82,446 |
|
Gains on the sale of company-operated restaurants |
|
(4,639 |
) |
|
|
(7,675 |
) |
|
|
(3,255 |
) |
|
|
(17,998 |
) |
Other operating expense, net (1) |
|
8,453 |
|
|
|
5,702 |
|
|
|
24,796 |
|
|
|
10,837 |
|
Goodwill impairment (2) |
|
— |
|
|
|
— |
|
|
|
162,624 |
|
|
|
— |
|
Depreciation and amortization |
|
13,570 |
|
|
|
13,827 |
|
|
|
59,776 |
|
|
|
62,287 |
|
Amortization of cloud-computing costs (3) |
|
822 |
|
|
|
1,178 |
|
|
|
4,487 |
|
|
|
5,004 |
|
Amortization of favorable and unfavorable leases and subleases, net |
|
135 |
|
|
|
198 |
|
|
|
701 |
|
|
|
1,633 |
|
Amortization of franchise tenant improvement allowances and incentives |
|
1,168 |
|
|
|
1,352 |
|
|
|
4,998 |
|
|
|
4,647 |
|
Net COLI (gains) losses (4) |
|
(5,101 |
) |
|
|
1,194 |
|
|
|
(14,390 |
) |
|
|
(5,953 |
) |
Pension and post-retirement benefit costs (5) |
|
1,579 |
|
|
|
1,608 |
|
|
|
6,843 |
|
|
|
6,967 |
|
Adjusted EBITDA – non-GAAP |
$ |
65,510 |
|
|
$ |
68,417 |
|
|
$ |
322,273 |
|
|
$ |
339,210 |
|
___________________________ |
|
(1) |
Other operating expense, net includes: integration and strategic initiatives; costs of closed restaurants; restaurant impairment charges; accelerated depreciation and gains on disposition of property and equipment, net. |
(2) |
Goodwill impairment charges recognized on the Del Taco reporting unit in the third quarter of 2024. |
(3) |
Amortization of cloud computing costs includes the amounts for the non-cash amortization of capitalized implementation costs related to cloud-based software arrangements that are included within selling, general and administrative expenses. |
(4) |
Net COLI (gains) losses reflect market-based adjustments on the company-owned life insurance policies which support our non-qualified benefit plans. |
(5) |
Pension and post-retirement benefit costs are the gains and losses relating to our two legacy defined benefit pension plans, as well as the two legacy post-retirement plans. |
Restaurant-Level Margin
Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, pre-opening costs, goodwill impairment, other operating expenses, net, gains or losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs. As such, Restaurant-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-operated restaurants.
Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings (loss) from operations, for the 12-weeks ended (in thousands):
|
|
12 weeks ended September 29, 2024 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings (loss) from operations - GAAP |
|
$ |
75,345 |
|
$ |
4,325 |
|
$ |
(28,568 |
) |
$ |
51,102 |
|
Franchise rental revenues |
|
|
(79,877 |
) |
|
(7,404 |
) |
|
— |
|
|
(87,281 |
) |
Franchise royalties and other |
|
|
(46,677 |
) |
|
(7,786 |
) |
|
— |
|
|
(54,463 |
) |
Franchise contributions for advertising and other services |
|
|
(48,797 |
) |
|
(7,332 |
) |
|
— |
|
|
(56,129 |
) |
Franchise occupancy expenses |
|
|
50,338 |
|
|
7,336 |
|
|
— |
|
|
57,674 |
|
Franchise support and other costs |
|
|
3,332 |
|
|
1,043 |
|
|
— |
|
|
4,375 |
|
Franchise advertising and other services expenses |
|
|
50,759 |
|
|
8,172 |
|
|
— |
|
|
58,931 |
|
Selling, general and administrative expenses |
|
|
8,201 |
|
|
7,854 |
|
|
13,978 |
|
|
30,033 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
13,570 |
|
|
13,570 |
|
Pre-opening costs |
|
|
1,052 |
|
|
213 |
|
|
— |
|
|
1,265 |
|
Goodwill impairment |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other operating expense, net |
|
|
4,266 |
|
|
3,167 |
|
|
1,020 |
|
|
8,453 |
|
Gains on the sale of company-operated restaurants |
|
|
(258 |
) |
|
(4,381 |
) |
|
— |
|
|
(4,639 |
) |
Restaurant-Level Margin- Non-GAAP |
|
$ |
17,684 |
|
$ |
5,207 |
|
$ |
— |
|
$ |
22,891 |
|
|
|
|
|
|
|
||||||||
Company restaurant sales |
|
$ |
95,718 |
|
$ |
55,699 |
|
$ |
— |
|
$ |
151,417 |
|
|
|
|
|
|
|
||||||||
Restaurant-Level Margin % - Non-GAAP |
|
|
18.5 |
% |
|
9.3 |
% |
|
N/A |
|
|
15.1 |
% |
|
|
12 weeks ended October 1, 2023 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings from operations - GAAP |
|
$ |
80,302 |
|
$ |
15,676 |
|
$ |
(43,337 |
) |
$ |
52,641 |
|
Franchise rental revenues |
|
|
(81,006 |
) |
|
(4,987 |
) |
|
— |
|
|
(85,993 |
) |
Franchise royalties and other |
|
|
(48,092 |
) |
|
(7,082 |
) |
|
— |
|
|
(55,174 |
) |
Franchise contributions for advertising and other services |
|
|
(48,956 |
) |
|
(7,436 |
) |
|
— |
|
|
(56,392 |
) |
Franchise occupancy expenses |
|
|
50,877 |
|
|
4,922 |
|
|
— |
|
|
55,799 |
|
Franchise support and other costs |
|
|
2,986 |
|
|
719 |
|
|
— |
|
|
3,705 |
|
Franchise advertising and other services expenses |
|
|
53,138 |
|
|
7,521 |
|
|
— |
|
|
60,659 |
|
Selling, general and administrative expenses |
|
|
8,304 |
|
|
9,654 |
|
|
25,750 |
|
|
43,708 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
13,827 |
|
|
13,827 |
|
Pre-opening costs |
|
|
684 |
|
|
33 |
|
|
— |
|
|
717 |
|
Other operating expense, net |
|
|
1,530 |
|
|
412 |
|
|
3,760 |
|
|
5,702 |
|
Gains on the sale of company-operated restaurants |
|
|
(71 |
) |
|
(7,604 |
) |
|
— |
|
|
(7,675 |
) |
Restaurant-Level Margin- Non-GAAP |
|
$ |
19,696 |
|
$ |
11,828 |
|
$ |
— |
|
$ |
31,524 |
|
|
|
|
|
|
|
||||||||
Company restaurant sales |
|
$ |
95,297 |
|
$ |
79,670 |
|
$ |
— |
|
$ |
174,967 |
|
|
|
|
|
|
|
||||||||
Restaurant-Level Margin % - Non-GAAP |
|
|
20.7 |
% |
|
14.8 |
% |
|
N/A |
|
|
18.0 |
% |
___________________________ |
|
(1) |
The "Other" category includes shared services costs and other unallocated costs |
(2) |
The totals might not agree to consolidated within the Form 10-K due to rounding |
Franchise-Level Margin
Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, pre-opening, goodwill impairment, other operating expenses, net, and other costs that are considered normal operating costs. As such, Franchise-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations.
Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from operations, for the 12-weeks ended (in thousands):
|
|
12 weeks ended September 29, 2024 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings from operations - GAAP |
|
$ |
75,345 |
|
$ |
4,325 |
|
$ |
(28,568 |
) |
$ |
51,102 |
|
Company restaurant sales |
|
|
(95,718 |
) |
|
(55,699 |
) |
|
— |
|
|
(151,417 |
) |
Food and packaging |
|
|
28,964 |
|
|
14,009 |
|
|
— |
|
|
42,973 |
|
Payroll and employee benefits |
|
|
31,274 |
|
|
21,748 |
|
|
— |
|
|
53,022 |
|
Occupancy and other |
|
|
17,794 |
|
|
14,737 |
|
|
— |
|
|
32,531 |
|
Selling, general and administrative expenses |
|
|
8,201 |
|
|
7,854 |
|
|
13,978 |
|
|
30,033 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
13,570 |
|
|
13,570 |
|
Pre-opening costs |
|
|
1,052 |
|
|
213 |
|
|
— |
|
|
1,265 |
|
Goodwill impairment |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other operating expense, net |
|
|
4,266 |
|
|
3,167 |
|
|
1,020 |
|
|
8,453 |
|
Gains on the sale of company-operated restaurants |
|
|
(258 |
) |
|
(4,381 |
) |
|
— |
|
|
(4,639 |
) |
Franchise-Level Margin - Non-GAAP |
|
$ |
70,920 |
|
$ |
5,973 |
|
$ |
— |
|
$ |
76,893 |
|
|
|
|
|
|
|
||||||||
Franchise rental revenues |
|
$ |
79,877 |
|
$ |
7,404 |
|
$ |
— |
|
$ |
87,281 |
|
Franchise royalties and other |
|
|
46,677 |
|
|
7,786 |
|
|
— |
|
|
54,463 |
|
Franchise contributions for advertising and other services |
|
|
48,797 |
|
|
7,332 |
|
|
— |
|
|
56,129 |
|
Total franchise revenues |
|
$ |
175,351 |
|
$ |
22,522 |
|
$ |
— |
|
$ |
197,873 |
|
|
|
|
|
|
|
||||||||
Franchise-Level Margin % - Non-GAAP |
|
|
40.4 |
% |
|
26.5 |
% |
|
N/A |
|
|
38.9 |
% |
|
|
12 weeks ended October 1, 2023 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings from operations - GAAP |
|
$ |
80,302 |
|
$ |
15,676 |
|
$ |
(43,337 |
) |
$ |
52,641 |
|
Company restaurant sales |
|
|
(95,297 |
) |
|
(79,670 |
) |
|
— |
|
|
(174,967 |
) |
Food and packaging |
|
|
29,353 |
|
|
21,684 |
|
|
— |
|
|
51,037 |
|
Payroll and employee benefits |
|
|
29,427 |
|
|
27,624 |
|
|
— |
|
|
57,051 |
|
Occupancy and other |
|
|
16,818 |
|
|
18,534 |
|
|
— |
|
|
35,352 |
|
Selling, general and administrative expenses |
|
|
8,304 |
|
|
9,654 |
|
|
25,750 |
|
|
43,708 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
13,827 |
|
|
13,827 |
|
Pre-opening costs |
|
|
684 |
|
|
33 |
|
|
— |
|
|
717 |
|
Other operating expense, net |
|
|
1,530 |
|
|
412 |
|
|
3,760 |
|
|
5,702 |
|
Gains on the sale of company-operated restaurants |
|
|
(71 |
) |
|
(7,604 |
) |
|
— |
|
|
(7,675 |
) |
Franchise-Level Margin - Non-GAAP |
|
$ |
71,050 |
|
$ |
6,343 |
|
$ |
— |
|
$ |
77,393 |
|
|
|
|
|
|
|
||||||||
Franchise rental revenues |
|
$ |
81,006 |
|
$ |
4,987 |
|
$ |
— |
|
$ |
85,993 |
|
Franchise royalties and other |
|
|
48,092 |
|
|
7,082 |
|
|
— |
|
|
55,174 |
|
Franchise contributions for advertising and other services |
|
|
48,956 |
|
|
7,436 |
|
|
— |
|
|
56,392 |
|
Total franchise revenues |
|
$ |
178,054 |
|
$ |
19,505 |
|
$ |
— |
|
$ |
197,559 |
|
|
|
|
|
|
|
||||||||
Franchise-Level Margin % - Non-GAAP |
|
|
39.9 |
% |
|
32.5 |
% |
|
N/A |
|
|
39.2 |
% |
___________________________ |
|
(1) |
The "Other" category includes shared services costs and other unallocated costs |
(2) |
The totals might not agree to consolidated within the Form 10-K due to rounding |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241120527098/en/
Chris Brandon
Vice President, Investor Relations
chris.brandon@jackinthebox.com
619.902.0269
Source: Jack in the Box Inc.
FAQ
What were Jack in the Box (JACK) same-store sales in Q4 2024?
How many new restaurants did Jack in the Box (JACK) open in fiscal year 2024?
What is Jack in the Box's (JACK) earnings guidance for fiscal year 2025?
How many restaurants did Del Taco refranchise in 2024?
