Jack in the Box Inc. Reports Second Quarter 2025 Earnings
Jack in the Box same-store sales of (
Jack in the Box systemwide sales of (
Diluted loss per share of (
Operating EPS of
“I am encouraged by our marketing plans in the back half of 2025, which we expect to energize sales despite the difficult industry-wide macro environment in which we continue to operate,” said Lance Tucker, Jack in the Box Chief Executive Officer. “As we stated when announcing the recent 'JACK on Track' plan, we are addressing the areas of need to improve the business, and I am confident in our ability to establish consistent top-line trends while becoming a more simple, efficient company and investor story.”
Jack in the Box Performance
Same-store sales decreased
Restaurant-Level Margin(1), a non-GAAP measure, was
Franchise-Level Margin(1), a non-GAAP measure, was
Jack in the Box net restaurant count decreased slightly in the second quarter, with five restaurant openings and twelve restaurant closures.
Jack in the Box Same-Store Sales: |
12 Weeks Ended |
||
|
April 13, 2025 |
|
April 14, 2024 |
Company |
(4.0 %) |
|
(0.6 %) |
Franchise |
(4.5 %) |
|
(2.6 %) |
System |
(4.4 %) |
|
(2.5 %) |
Jack in the Box Restaurant Counts: |
||||||||||||||||
|
2025 |
|
|
|
|
2024 |
|
|
||||||||
|
Company |
|
Franchise |
|
Total |
|
Company |
|
Franchise |
|
Total |
|||||
Restaurant count at Q1'25 |
152 |
|
|
2,038 |
|
|
2,190 |
|
|
142 |
|
2,044 |
|
|
2,186 |
|
New |
— |
|
|
5 |
|
|
5 |
|
|
2 |
|
5 |
|
|
7 |
|
Closed |
(6 |
) |
|
(6 |
) |
|
(12 |
) |
|
— |
|
(1 |
) |
|
(1 |
) |
Restaurant count at end of Q2'25 |
146 |
|
|
2,037 |
|
|
2,183 |
|
|
144 |
|
2,048 |
|
|
2,192 |
|
Q2'25 QTD Net Restaurant Decrease |
(6 |
) |
|
(1 |
) |
|
(7 |
) |
|
|
|
|
|
|
||
YTD Net Restaurant Decrease |
(2.7 |
)% |
|
(0.2 |
)% |
|
(0.4 |
)% |
|
|
|
|
|
|
||
Del Taco Performance
Same-store sales decreased
Restaurant-Level Margin(1), a non-GAAP measure, was
Franchise-Level Margin(1), a non-GAAP measure, was
Del Taco restaurant count in the second quarter had six restaurant openings and four restaurant closings.
Del Taco Same-Store Sales: |
12 Weeks Ended |
||
|
April 13, 2025 |
|
April 14, 2024 |
Company |
(1.7 %) |
|
(1.8 %) |
Franchise |
(4.2 %) |
|
(1.1 %) |
System |
(3.6 %) |
|
(1.4 %) |
Del Taco Restaurant Counts: |
|||||||||||||||||
|
2025 |
|
|
|
|
2024 |
|
|
|
||||||||
|
Company |
|
Franchise |
|
Total |
|
Company |
|
Franchise |
|
Total |
||||||
Restaurant count at Q1'25 |
119 |
|
|
470 |
|
|
589 |
|
|
171 |
|
|
421 |
|
|
592 |
|
New |
— |
|
|
6 |
|
|
6 |
|
|
— |
|
|
3 |
|
|
3 |
|
Acquired from franchisees |
— |
|
|
— |
|
|
— |
|
|
9 |
|
|
(9 |
) |
|
— |
|
Closed |
(2 |
) |
|
(2 |
) |
|
(4 |
) |
|
(1 |
) |
|
(2 |
) |
|
(3 |
) |
Restaurant count at end of Q2'25 |
117 |
|
|
474 |
|
|
591 |
|
|
179 |
|
|
413 |
|
|
592 |
|
Q2'25 QTD Net Restaurant Increase (Decrease) |
(2 |
) |
|
4 |
|
|
2 |
|
|
|
|
|
|
|
|||
YTD Net Restaurant Increase (Decrease) |
(12.0 |
)% |
|
2.8 |
% |
|
(0.5 |
)% |
|
|
|
|
|
|
|||
Company-Wide Performance
Second quarter diluted loss per share was (
Total revenues decreased
Company-wide SG&A expense for the second quarter was
During the quarter, the Company recognized goodwill and intangible impairment of
The income tax provision reflects an effective tax rate of
(1) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings (loss) from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results." |
(2) Operating Earnings Per Share represents the diluted earnings per share on a GAAP basis, excluding certain adjustments. See "Reconciliation of Non-GAAP Measurements to GAAP Results." Operating earnings per share may not add due to rounding. |
(3) Adjusted EBITDA represents net earnings on a GAAP basis excluding certain adjustments. See "Reconciliation of Non-GAAP Measurements to GAAP Results." |
Capital Allocation
The Company did not repurchase any shares of our common stock in the second quarter. As of the end of the second quarter, there was
Guidance & Outlook Updates
All guidance measures remain the same as provided on April 23, 2025 as part of the “JACK on Track” plan announcement.
Conference Call
The Company will host a conference call for analysts and investors on Wednesday, May 14, 2025, 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 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (In thousands, except per share data) (Unaudited) |
|||||||||||||
|
12 Weeks Ended |
|
28 Weeks Ended |
||||||||||
|
April 13, 2025 |
|
April 14, 2024 |
|
April 13, 2025 |
|
April 14, 2024 |
||||||
Revenues: |
|
|
|
|
|
|
|
||||||
Company restaurant sales |
$ |
142,492 |
|
|
$ |
167,098 |
|
$ |
343,898 |
|
|
$ |
391,138 |
Franchise rental revenues |
|
86,307 |
|
|
|
85,826 |
|
|
202,853 |
|
|
|
199,022 |
Franchise royalties and other |
|
53,939 |
|
|
|
55,084 |
|
|
127,973 |
|
|
|
128,414 |
Franchise contributions for advertising and other services |
|
53,958 |
|
|
|
57,339 |
|
|
131,410 |
|
|
|
134,271 |
|
|
336,696 |
|
|
|
365,347 |
|
|
806,134 |
|
|
|
852,845 |
Operating costs and expenses, net: |
|
|
|
|
|
|
|
||||||
Food and packaging |
|
38,095 |
|
|
|
45,914 |
|
|
89,743 |
|
|
|
110,046 |
Payroll and employee benefits |
|
50,273 |
|
|
|
54,054 |
|
|
120,546 |
|
|
|
127,108 |
Occupancy and other |
|
29,382 |
|
|
|
32,355 |
|
|
68,528 |
|
|
|
74,408 |
Franchise occupancy expenses |
|
59,558 |
|
|
|
57,091 |
|
|
138,391 |
|
|
|
129,715 |
Franchise support and other costs |
|
4,903 |
|
|
|
3,860 |
|
|
10,101 |
|
|
|
9,054 |
Franchise advertising and other services expenses |
|
55,746 |
|
|
|
59,523 |
|
|
134,744 |
|
|
|
139,757 |
Selling, general and administrative expenses |
|
35,492 |
|
|
|
37,520 |
|
|
86,164 |
|
|
|
83,885 |
Depreciation and amortization |
|
12,217 |
|
|
|
13,906 |
|
|
30,487 |
|
|
|
32,379 |
Pre-opening costs |
|
632 |
|
|
|
602 |
|
|
2,108 |
|
|
|
1,067 |
Impairment of goodwill and intangible assets |
|
203,230 |
|
|
|
— |
|
|
203,230 |
|
|
|
— |
Other operating expenses, net |
|
4,216 |
|
|
|
5,267 |
|
|
7,735 |
|
|
|
10,437 |
(Gains) losses on the sale of company-operated restaurants |
|
30 |
|
|
|
1,065 |
|
|
(2,776 |
) |
|
|
1,319 |
|
|
493,774 |
|
|
|
311,157 |
|
|
889,001 |
|
|
|
719,175 |
Earnings (loss) from operations |
|
(157,078 |
) |
|
|
54,190 |
|
|
(82,867 |
) |
|
|
133,670 |
Other pension and post-retirement expenses, net |
|
1,341 |
|
|
|
1,579 |
|
|
3,130 |
|
|
|
3,685 |
Interest expense, net |
|
18,368 |
|
|
|
18,603 |
|
|
42,793 |
|
|
|
43,089 |
Earnings (loss) before income taxes |
|
(176,787 |
) |
|
|
34,008 |
|
|
(128,790 |
) |
|
|
86,896 |
Income tax expense (benefit) |
|
(34,559 |
) |
|
|
9,028 |
|
|
(20,248 |
) |
|
|
23,233 |
Net earnings (loss) |
$ |
(142,228 |
) |
|
$ |
24,980 |
|
$ |
(108,542 |
) |
|
$ |
63,663 |
|
|
|
|
|
|
|
|
||||||
Net earnings (loss) per share: |
|
|
|
|
|
|
|
||||||
Basic |
$ |
(7.47 |
) |
|
$ |
1.27 |
|
$ |
(5.70 |
) |
|
$ |
3.22 |
Diluted |
$ |
(7.47 |
) |
|
$ |
1.26 |
|
$ |
(5.70 |
) |
|
$ |
3.19 |
|
|
|
|
|
|
|
|
||||||
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
||||||
Basic |
|
19,043 |
|
|
|
19,653 |
|
|
19,047 |
|
|
|
19,790 |
Diluted |
|
19,043 |
|
|
|
19,785 |
|
|
19,047 |
|
|
|
19,949 |
|
|
|
|
|
|
|
|
||||||
Dividends declared per common share |
$ |
0.44 |
|
|
$ |
0.44 |
|
$ |
0.88 |
|
|
$ |
0.88 |
JACK IN THE BOX INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) |
|||||||
|
April 13,
|
|
September 29,
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
15,780 |
|
|
$ |
24,745 |
|
Restricted cash |
|
29,812 |
|
|
|
29,422 |
|
Accounts and other receivables, net |
|
114,675 |
|
|
|
83,567 |
|
Inventories |
|
3,793 |
|
|
|
3,922 |
|
Prepaid expenses |
|
8,297 |
|
|
|
13,126 |
|
Current assets held for sale |
|
8,852 |
|
|
|
16,493 |
|
Other current assets |
|
18,727 |
|
|
|
10,002 |
|
Total current assets |
|
199,936 |
|
|
|
181,277 |
|
Property and equipment: |
|
|
|
||||
Property and equipment, at cost |
|
1,303,877 |
|
|
|
1,278,530 |
|
Less accumulated depreciation and amortization |
|
(861,587 |
) |
|
|
(848,491 |
) |
Property and equipment, net |
|
442,290 |
|
|
|
430,039 |
|
Other assets: |
|
|
|
||||
Operating lease right-of-use assets |
|
1,398,798 |
|
|
|
1,410,083 |
|
Intangible assets, net |
|
10,086 |
|
|
|
10,515 |
|
Trademarks |
|
105,600 |
|
|
|
283,500 |
|
Goodwill |
|
136,026 |
|
|
|
161,209 |
|
Deferred tax assets |
|
38,057 |
|
|
|
— |
|
Other assets, net |
|
248,751 |
|
|
|
259,006 |
|
Total other assets |
|
1,937,318 |
|
|
|
2,124,313 |
|
|
$ |
2,579,544 |
|
|
$ |
2,735,629 |
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current maturities of long-term debt |
$ |
29,579 |
|
|
$ |
35,880 |
|
Current operating lease liabilities |
|
159,002 |
|
|
|
162,017 |
|
Accounts payable |
|
68,257 |
|
|
|
69,494 |
|
Accrued liabilities |
|
167,742 |
|
|
|
166,868 |
|
Total current liabilities |
|
424,580 |
|
|
|
434,259 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt, net of current maturities |
|
1,687,135 |
|
|
|
1,699,433 |
|
Long-term operating lease liabilities, net of current portion |
|
1,269,405 |
|
|
|
1,286,415 |
|
Deferred tax liabilities |
|
— |
|
|
|
13,612 |
|
Other long-term liabilities |
|
174,645 |
|
|
|
153,708 |
|
Total long-term liabilities |
|
3,131,185 |
|
|
|
3,153,168 |
|
Stockholders’ deficit: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
830 |
|
|
|
828 |
|
Capital in excess of par value |
|
538,624 |
|
|
|
533,818 |
|
Retained earnings |
|
1,741,383 |
|
|
|
1,866,660 |
|
Accumulated other comprehensive loss |
|
(56,433 |
) |
|
|
(57,475 |
) |
Treasury stock, at cost, 64,120,270 and 63,996,399 shares, respectively |
|
(3,200,625 |
) |
|
|
(3,195,629 |
) |
Total stockholders’ deficit |
|
(976,221 |
) |
|
|
(851,798 |
) |
|
$ |
2,579,544 |
|
|
$ |
2,735,629 |
|
JACK IN THE BOX INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|||||||
|
Year-to-date |
||||||
|
April 13, 2025 |
|
April 14, 2024 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net earnings (loss) |
$ |
(108,542 |
) |
|
$ |
63,663 |
|
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
30,487 |
|
|
|
32,379 |
|
Amortization of franchise tenant improvement allowances and incentives |
|
3,484 |
|
|
|
2,538 |
|
Deferred finance cost amortization |
|
2,572 |
|
|
|
2,610 |
|
Excess tax deficiency (benefit) from share-based compensation arrangements |
|
1,435 |
|
|
|
(49 |
) |
Deferred income taxes |
|
(55,452 |
) |
|
|
(2,326 |
) |
Share-based compensation expense |
|
4,685 |
|
|
|
8,661 |
|
Pension and post-retirement expense |
|
3,130 |
|
|
|
3,685 |
|
Loss (gains) on cash surrender value of company-owned life insurance |
|
2,242 |
|
|
|
(7,949 |
) |
(Gains) losses on the sale of company-operated restaurants |
|
(2,776 |
) |
|
|
1,319 |
|
Gains on acquisition of restaurants |
|
(6 |
) |
|
|
(2,357 |
) |
Losses on the disposition of property and equipment, net |
|
1,385 |
|
|
|
1,148 |
|
Impairment charges |
|
205,094 |
|
|
|
1,580 |
|
Changes in assets and liabilities: |
|
|
|
||||
Accounts and other receivables |
|
(28,655 |
) |
|
|
815 |
|
Inventories |
|
129 |
|
|
|
(170 |
) |
Prepaid expenses and other current assets |
|
(4,007 |
) |
|
|
9,299 |
|
Operating lease right-of-use assets and lease liabilities |
|
(9,580 |
) |
|
|
9,392 |
|
Accounts payable |
|
550 |
|
|
|
(396 |
) |
Accrued liabilities |
|
1,927 |
|
|
|
(123,532 |
) |
Pension and post-retirement contributions |
|
(3,833 |
) |
|
|
(3,288 |
) |
Franchise tenant improvement allowance and incentive disbursements |
|
(3,586 |
) |
|
|
(1,460 |
) |
Other |
|
28,207 |
|
|
|
(1,583 |
) |
Cash flows provided by (used in) operating activities |
|
68,890 |
|
|
|
(6,021 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(47,769 |
) |
|
|
(49,086 |
) |
Purchases of assets intended for sale or leaseback |
|
(8,827 |
) |
|
|
(11,985 |
) |
Proceeds from the sale of property and equipment |
|
15,110 |
|
|
|
1,500 |
|
Proceeds from the sale and leaseback of assets |
|
— |
|
|
|
1,728 |
|
Proceeds from the sale of company-operated restaurants |
|
5,712 |
|
|
|
1,989 |
|
Other |
|
3,303 |
|
|
|
— |
|
Cash flows used in investing activities |
|
(32,471 |
) |
|
|
(55,854 |
) |
Cash flows from financing activities: |
|
|
|
||||
Repayments of borrowings on revolving credit facilities |
|
(6,000 |
) |
|
|
— |
|
Principal repayments on debt |
|
(14,930 |
) |
|
|
(14,818 |
) |
Dividends paid on common stock |
|
(16,614 |
) |
|
|
(17,167 |
) |
Proceeds from issuance of common stock |
|
2 |
|
|
|
2 |
|
Repurchases of common stock |
|
(4,999 |
) |
|
|
(40,000 |
) |
Payroll tax payments for equity award issuances |
|
(2,453 |
) |
|
|
(3,072 |
) |
Cash flows used in financing activities |
|
(44,994 |
) |
|
|
(75,055 |
) |
Net decrease in cash and restricted cash |
|
(8,575 |
) |
|
|
(136,930 |
) |
Cash and restricted cash at beginning of period |
|
54,167 |
|
|
|
185,907 |
|
Cash and restricted cash at end of period |
$ |
45,592 |
|
|
$ |
48,977 |
|
JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) DATA
(Unaudited)
The following table presents certain income and expense items included in our condensed consolidated statements of earnings (loss) as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.
|
12 Weeks Ended |
|
28 Weeks Ended |
||||
|
April 13, 2025 |
|
April 14, 2024 |
|
April 13,
|
|
April 14,
|
Revenues: |
|
|
|
|
|
|
|
Company restaurant sales |
42.3 % |
|
45.7 % |
|
42.7 % |
|
45.9 % |
Franchise rental revenues |
25.6 % |
|
23.5 % |
|
25.2 % |
|
23.3 % |
Franchise royalties and other |
16.0 % |
|
15.1 % |
|
15.9 % |
|
15.1 % |
Franchise contributions for advertising and other services |
16.0 % |
|
15.7 % |
|
16.3 % |
|
15.7 % |
|
100.0 % |
|
100.0 % |
|
100.0 % |
|
100.0 % |
Operating costs and expenses, net: |
|
|
|
|
|
|
|
Food and packaging (1) |
26.7 % |
|
27.5 % |
|
26.1 % |
|
28.1 % |
Payroll and employee benefits (1) |
35.3 % |
|
32.3 % |
|
35.1 % |
|
32.5 % |
Occupancy and other (1) |
20.6 % |
|
19.4 % |
|
19.9 % |
|
19.0 % |
Franchise occupancy expenses (2) |
69.0 % |
|
66.5 % |
|
68.2 % |
|
65.2 % |
Franchise support and other costs (3) |
9.1 % |
|
7.0 % |
|
7.9 % |
|
7.1 % |
Franchise advertising and other services expenses (4) |
103.3 % |
|
103.8 % |
|
102.5 % |
|
104.1 % |
Selling, general and administrative expenses |
10.5 % |
|
10.3 % |
|
10.7 % |
|
9.8 % |
Depreciation and amortization |
3.6 % |
|
3.8 % |
|
3.8 % |
|
3.8 % |
Pre-opening costs |
0.2 % |
|
0.2 % |
|
0.3 % |
|
0.1 % |
Goodwill and intangible impairment |
60.4 % |
|
— % |
|
25.2 % |
|
— % |
Other operating expenses, net |
1.3 % |
|
1.4 % |
|
1.0 % |
|
1.2 % |
(Gains) losses on the sale of company-operated restaurants |
— % |
|
0.3 % |
|
(0.3) % |
|
0.2 % |
Earnings (loss) from operations |
(46.7) % |
|
14.8 % |
|
(10.3) % |
|
15.7 % |
Income tax rate (5) |
19.5 % |
|
26.5 % |
|
15.7 % |
|
26.7 % |
____________________________ |
|||||||
| (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 (loss) from operations and before income taxes. |
|||||||
Jack in the Box systemwide sales (in thousands): |
12 Weeks Ended |
|
28 Weeks Ended |
||||||||
|
April 13, 2025 |
|
April 14, 2024 |
|
April 13, 2025 |
|
April 14, 2024 |
||||
Company-operated restaurant sales |
$ |
95,095 |
|
$ |
98,927 |
|
$ |
228,850 |
|
$ |
230,984 |
Franchised restaurant sales (1) |
|
865,609 |
|
|
911,265 |
|
|
2,097,956 |
|
|
2,138,015 |
Systemwide sales (1) |
$ |
960,704 |
|
$ |
1,010,192 |
|
$ |
2,326,806 |
|
$ |
2,368,999 |
Del Taco systemwide sales (in thousands): |
12 Weeks Ended |
|
28 Weeks Ended |
||||||||
|
April 13, 2025 |
|
April 14, 2024 |
|
April 13, 2025 |
|
April 14, 2024 |
||||
Company-operated restaurant sales |
$ |
47,397 |
|
$ |
68,171 |
|
$ |
115,048 |
|
$ |
160,154 |
Franchised restaurant sales (1) |
|
165,596 |
|
|
154,854 |
|
|
382,879 |
|
|
353,330 |
Systemwide sales (1) |
$ |
212,993 |
|
$ |
223,025 |
|
$ |
497,927 |
|
$ |
513,484 |
____________________________ |
||
| (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 condensed consolidated financial statements, which are presented in accordance with GAAP, the Company uses the following non-GAAP measures: Adjusted Net Income, 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 (loss) per share on a GAAP basis excluding integration and strategic initiatives, net COLI losses (gains), pension and post-retirement benefit costs, goodwill and intangible impairment, losses (gains) on the sale of company-operated restaurants, excess tax (benefits) 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 (loss) per share:
|
|
12 Weeks Ended |
||||||
|
|
April 13, 2025 |
|
April 14, 2024 |
||||
Net income (loss), as reported |
|
$ |
(142,228 |
) |
|
$ |
24,980 |
|
Integration and strategic initiatives (1) |
|
|
276 |
|
|
|
4,268 |
|
Net COLI losses (gains) (2) |
|
|
1,407 |
|
|
|
(1,232 |
) |
Pension and post-retirement benefit costs (3) |
|
|
1,341 |
|
|
|
1,579 |
|
Goodwill and intangible impairment (4) |
|
|
203,230 |
|
|
|
— |
|
Restaurant impairment charges |
|
|
1,129 |
|
|
|
— |
|
Losses on the sale of company-operated restaurants |
|
|
30 |
|
|
|
1,065 |
|
Excess tax shortfall (benefit) from share-based compensation arrangements |
|
|
324 |
|
|
|
(38 |
) |
Tax impact of adjustments (5) |
|
|
(42,485 |
) |
|
|
(1,700 |
) |
Non-GAAP Adjusted Net Income |
|
$ |
23,024 |
|
|
$ |
28,922 |
|
|
|
|
|
|
||||
Diluted weighted-average shares outstanding - GAAP |
|
|
19,043 |
|
|
|
19,785 |
|
Diluted weighted-average shares outstanding - non-GAAP (6) |
|
|
19,152 |
|
|
|
19,785 |
|
|
|
|
|
|
||||
Diluted earnings (loss) per share – GAAP (6) |
|
$ |
(7.43 |
) |
|
$ |
1.26 |
|
Integration and strategic initiatives (1) |
|
|
0.01 |
|
|
|
0.22 |
|
Net COLI losses (gains) (2) |
|
|
0.07 |
|
|
|
(0.06 |
) |
Pension and post-retirement benefit costs (3) |
|
|
0.07 |
|
|
|
0.08 |
|
Goodwill and intangible impairment (4) |
|
|
10.61 |
|
|
|
— |
|
Restaurant impairment charges |
|
|
0.06 |
|
|
|
— |
|
Losses on the sale of company-operated restaurants |
|
|
0.00 |
|
|
|
0.05 |
|
Excess tax (benefits) shortfall from share-based compensation arrangements |
|
|
0.02 |
|
|
|
(0.00 |
) |
Tax impact of adjustments (5) |
|
|
(2.22 |
) |
|
|
(0.09 |
) |
Operating Earnings Per Share – non-GAAP (7) |
|
$ |
1.20 |
|
|
$ |
1.46 |
|
____________________ |
||
| (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 losses (gains) reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies. |
|
| (3) | Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as our two legacy post-retirement plans. |
|
| (4) | Represents the impairment of the Del Taco reporting unit goodwill and trademark assets. |
|
| (5) |
Tax impacts for the quarter calculated based on the non-GAAP Operating EPS tax rate of |
|
| (6) | 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. |
|
| (7) | Operating Earnings Per Share may not add due to rounding. |
|
Adjusted EBITDA
Adjusted EBITDA represents net earnings (loss) on a GAAP basis excluding income taxes, interest expense, net, losses (gains) on the sale of company-operated restaurants, other operating expenses (income), net, goodwill and intangible 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 other, net COLI losses (gains), 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 (loss) (in thousands):
|
12 Weeks Ended |
||||||
|
April 13, 2025 |
|
April 14, 2024 |
||||
Net income - GAAP |
$ |
(142,228 |
) |
|
$ |
24,980 |
|
Income taxes |
|
(34,559 |
) |
|
|
9,028 |
|
Interest expense, net |
|
18,368 |
|
|
|
18,603 |
|
(Gains) losses on the sale of company-operated restaurants |
|
30 |
|
|
|
1,065 |
|
Other operating expenses, net (1) |
|
4,216 |
|
|
|
5,267 |
|
Goodwill and intangible impairment (2) |
|
203,230 |
|
|
|
— |
|
Depreciation and amortization |
|
12,217 |
|
|
|
13,906 |
|
Amortization of cloud-computing costs (3) |
|
489 |
|
|
|
1,274 |
|
Amortization of favorable and unfavorable leases and subleases, net (4) |
|
120 |
|
|
|
107 |
|
Amortization of franchise tenant improvement allowances and other |
|
1,829 |
|
|
|
1,120 |
|
Net COLI losses (gains) (5) |
|
1,407 |
|
|
|
(1,232 |
) |
Pension and post-retirement benefit costs (6) |
|
1,341 |
|
|
|
1,579 |
|
Adjusted EBITDA – non-GAAP |
$ |
66,460 |
|
|
$ |
75,697 |
|
____________________ |
||
| (1) | Other operating expense, net includes: integration and strategic initiatives; costs of closed restaurants; operating restaurant impairment charges; accelerated depreciation and gains/losses on disposition of property and equipment, net. |
|
| (2) | Impairment charges recognized on the Del Taco reporting unit goodwill and trademark assets. |
|
| (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) | Amortization of favorable and unfavorable leases and subleases, net, which is not already included in the other operating expense, net, noted above. |
|
| (5) | Net COLI losses (gains) reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies. |
|
| (6) | Pension and post-retirement benefit costs 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 selling, general, and administrative expenses. Certain other costs, such as depreciation and amortization, goodwill impairment, other operating expenses, net, gains/ losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs are excluded as they are considered corporate-level shared service 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 (in thousands):
|
|
12 weeks ended April 13, 2025 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings (loss) from operations - GAAP |
|
$ |
75,499 |
|
$ |
(200,106 |
) |
$ |
(32,471 |
) |
$ |
(157,078 |
) |
Franchise rental revenues |
|
|
(77,935 |
) |
|
(8,372 |
) |
|
— |
|
|
(86,307 |
) |
Franchise royalties and other |
|
|
(45,754 |
) |
|
(8,185 |
) |
|
— |
|
|
(53,939 |
) |
Franchise contributions for advertising and other services |
|
|
(46,947 |
) |
|
(7,011 |
) |
|
— |
|
|
(53,958 |
) |
Franchise occupancy expenses |
|
|
51,153 |
|
|
8,406 |
|
|
— |
|
|
59,559 |
|
Franchise support and other costs |
|
|
3,198 |
|
|
1,705 |
|
|
— |
|
|
4,903 |
|
Franchise advertising and other services expenses |
|
|
48,029 |
|
|
7,716 |
|
|
— |
|
|
55,745 |
|
Selling, general and administrative expenses |
|
|
9,287 |
|
|
6,227 |
|
|
19,978 |
|
|
35,492 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
12,217 |
|
|
12,217 |
|
Pre-opening costs |
|
|
599 |
|
|
33 |
|
|
— |
|
|
632 |
|
Goodwill and intangible impairment |
|
|
— |
|
|
203,230 |
|
|
— |
|
|
203,230 |
|
Other operating expenses, net |
|
|
1,546 |
|
|
2,394 |
|
|
276 |
|
|
4,216 |
|
Losses on the sale of company-operated restaurants |
|
|
— |
|
|
30 |
|
|
— |
|
|
30 |
|
Restaurant-Level Margin - Non-GAAP |
|
$ |
18,675 |
|
$ |
6,067 |
|
$ |
— |
|
$ |
24,742 |
|
|
|
|
|
|
|
||||||||
Company restaurant sales |
|
$ |
95,095 |
|
$ |
47,397 |
|
$ |
— |
|
$ |
142,492 |
|
|
|
|
|
|
|
||||||||
Restaurant-Level Margin % - Non-GAAP |
|
|
19.6 |
% |
|
12.8 |
% |
|
N/A |
|
|
17.4 |
% |
|
|
12 weeks ended April 14, 2024 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings from operations - GAAP |
|
$ |
84,980 |
|
$ |
9,039 |
|
$ |
(39,829 |
) |
$ |
54,190 |
|
Franchise rental revenues |
|
|
(79,618 |
) |
|
(6,208 |
) |
|
— |
|
|
(85,826 |
) |
Franchise royalties and other |
|
|
(47,537 |
) |
|
(7,547 |
) |
|
— |
|
|
(55,084 |
) |
Franchise contributions for advertising and other services |
|
|
(50,179 |
) |
|
(7,160 |
) |
|
— |
|
|
(57,339 |
) |
Franchise occupancy expenses |
|
|
50,849 |
|
|
6,242 |
|
|
— |
|
|
57,091 |
|
Franchise support and other costs |
|
|
2,757 |
|
|
1,103 |
|
|
— |
|
|
3,860 |
|
Franchise advertising and other services expenses |
|
|
52,003 |
|
|
7,520 |
|
|
— |
|
|
59,523 |
|
Selling, general and administrative expenses |
|
|
9,752 |
|
|
7,112 |
|
|
20,656 |
|
|
37,520 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
13,906 |
|
|
13,906 |
|
Pre-opening costs |
|
|
322 |
|
|
280 |
|
|
— |
|
|
602 |
|
Other operating expenses, net |
|
|
— |
|
|
— |
|
|
5,267 |
|
|
5,267 |
|
Losses on the sale of company-operated restaurants |
|
|
— |
|
|
1,065 |
|
|
— |
|
|
1,065 |
|
Restaurant-Level Margin - Non-GAAP |
|
$ |
23,329 |
|
$ |
11,446 |
|
$ |
— |
|
$ |
34,775 |
|
|
|
|
|
|
|
||||||||
Company restaurant sales |
|
$ |
98,927 |
|
$ |
68,171 |
|
$ |
— |
|
$ |
167,098 |
|
|
|
|
|
|
|
||||||||
Restaurant-Level Margin % - Non-GAAP |
|
|
23.6 |
% |
|
16.8 |
% |
|
N/A |
|
|
20.8 |
% |
(1) The "Other" category includes shared services costs and other unallocated costs. |
|||||||||||||
(2) The totals might not agree to consolidated within the Form 10-Q 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 selling, general, and administrative expenses. Certain other costs, such as depreciation and amortization, goodwill impairment, other operating expenses, net, gains/ losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs are excluded as they are considered corporate-level shared service 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 (loss) from operations (in thousands):
|
|
12 weeks ended April 13, 2025 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings (loss) from operations - GAAP |
|
$ |
75,499 |
|
$ |
(200,106 |
) |
$ |
(32,471 |
) |
$ |
(157,078 |
) |
Company restaurant sales |
|
|
(95,095 |
) |
|
(47,397 |
) |
|
— |
|
|
(142,492 |
) |
Food and packaging |
|
|
26,437 |
|
|
11,658 |
|
|
— |
|
|
38,095 |
|
Payroll and employee benefits |
|
|
32,178 |
|
|
18,095 |
|
|
— |
|
|
50,273 |
|
Occupancy and other |
|
|
17,804 |
|
|
11,578 |
|
|
— |
|
|
29,382 |
|
Selling, general and administrative expenses |
|
|
9,287 |
|
|
6,227 |
|
|
19,978 |
|
|
35,492 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
12,217 |
|
|
12,217 |
|
Pre-opening costs |
|
|
599 |
|
|
33 |
|
|
— |
|
|
632 |
|
Goodwill and intangible impairment |
|
|
— |
|
|
203,230 |
|
|
— |
|
|
203,230 |
|
Other operating expenses, net |
|
|
1,546 |
|
|
2,394 |
|
|
276 |
|
|
4,216 |
|
Losses on the sale of company-operated restaurants |
|
|
— |
|
|
30 |
|
|
— |
|
|
30 |
|
Franchise-Level Margin - Non-GAAP |
|
$ |
68,255 |
|
$ |
5,742 |
|
$ |
— |
|
$ |
73,997 |
|
|
|
|
|
|
|
||||||||
Franchise rental revenues |
|
$ |
77,935 |
|
$ |
8,372 |
|
$ |
— |
|
$ |
86,307 |
|
Franchise royalties and other |
|
|
45,754 |
|
|
8,185 |
|
|
— |
|
|
53,939 |
|
Franchise contributions for advertising and other services |
|
|
46,947 |
|
|
7,011 |
|
|
— |
|
|
53,958 |
|
Total franchise revenues |
|
$ |
170,636 |
|
$ |
23,568 |
|
$ |
— |
|
$ |
194,204 |
|
|
|
|
|
|
|
||||||||
Franchise-Level Margin % - Non-GAAP
|
|
|
40.0 |
% |
|
24.4 |
% |
|
N/A |
|
|
38.1 |
% |
|
|
12 weeks ended April 14, 2024 |
|||||||||||
|
|
Jack in the Box |
Del Taco |
Other (1) |
Total (2) |
||||||||
Earnings from operations - GAAP |
|
$ |
84,980 |
|
$ |
9,039 |
|
$ |
(39,829 |
) |
$ |
54,190 |
|
Company restaurant sales |
|
|
(98,927 |
) |
|
(68,171 |
) |
|
— |
|
|
(167,098 |
) |
Food and packaging |
|
|
28,486 |
|
|
17,428 |
|
|
— |
|
|
45,914 |
|
Payroll and employee benefits |
|
|
30,294 |
|
|
23,760 |
|
|
— |
|
|
54,054 |
|
Occupancy and other |
|
|
16,818 |
|
|
15,537 |
|
|
— |
|
|
32,355 |
|
Selling, general and administrative expenses |
|
|
9,752 |
|
|
7,112 |
|
|
20,656 |
|
|
37,520 |
|
Depreciation and amortization |
|
|
— |
|
|
— |
|
|
13,906 |
|
|
13,906 |
|
Pre-opening costs |
|
|
322 |
|
|
280 |
|
|
— |
|
|
602 |
|
Other operating expenses, net |
|
|
— |
|
|
— |
|
|
5,267 |
|
|
5,267 |
|
Losses on the sale of company-operated restaurants |
|
|
— |
|
|
1,065 |
|
|
— |
|
|
1,065 |
|
Franchise-Level Margin - Non-GAAP |
|
$ |
71,725 |
|
$ |
6,050 |
|
$ |
— |
|
$ |
77,775 |
|
|
|
|
|
|
|
||||||||
Franchise rental revenues |
|
$ |
79,618 |
|
$ |
6,208 |
|
$ |
— |
|
$ |
85,826 |
|
Franchise royalties and other |
|
|
47,537 |
|
|
7,547 |
|
|
— |
|
|
55,084 |
|
Franchise contributions for advertising and other services |
|
|
50,179 |
|
|
7,160 |
|
|
— |
|
|
57,339 |
|
Total franchise revenues |
|
$ |
177,334 |
|
$ |
20,915 |
|
$ |
— |
|
$ |
198,249 |
|
|
|
|
|
|
|
||||||||
Franchise-Level Margin % - Non-GAAP |
|
|
40.4 |
% |
|
28.9 |
% |
|
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-Q due to rounding. |
|||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250514330701/en/
Chris Brandon
Vice President, Investor Relations
chris.brandon@jackinthebox.com
619.902.0269
Source: Jack in the Box Inc.
