Jack in the Box Inc. Reports Fourth Quarter FY 2015 Earnings

Issues Guidance for FY 2016; Declares Quarterly Cash Dividend

SAN DIEGO - November 17, 2015 - (BUSINESS WIRE) - Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $23.8 million, or $0.65 per diluted share, for the fourth quarter ended September 27, 2015, compared with earnings from continuing operations of $17.4 million, or $0.44 per diluted share, for the fourth quarter of fiscal 2014.

Fiscal 2015 earnings from continuing operations totaled $112.6 million, or $2.95 per diluted share, compared with $94.8 million, or $2.26 per diluted share in fiscal 2014.

Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, were $0.62 in the fourth quarter of fiscal 2015 compared with $0.54 in the prior year quarter. For fiscal year 2015, operating earnings per share were $3.00 compared with $2.45 last year.

A reconciliation of non-GAAP measurements to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.

      Quarter Ended     Fiscal Year Ended
      Sept. 27,
2015
    Sept. 28,
2014
    Sept. 27,
2015
    Sept. 28,
2014

Diluted earnings per share from continuing operations – GAAP

   

$

0.65

     

$

0.44

   

$

2.95

   

$

2.26

Restructuring charges       -         -       -       0.13
(Gains)/losses from refranchising       (0.02 )       0.10       0.05       0.05
Operating earnings per share – Non-GAAP     $ 0.62       $ 0.54     $ 3.00     $ 2.45
                                   

 Lenny Comma, chairman and chief executive officer, said, “We’re pleased with our fourth quarter performance, which culminated in a 15 percent increase in operating earnings per share resulting from solid same-store sales growth and margin expansion at both Jack in the Box® and Qdoba®. This performance capped another terrific year, with operating earnings per share up approximately 22 percent, the fourth consecutive year of growth in excess of 20 percent.

“We continued to use our growing free cash flow to return cash to shareholders with a 9 percent reduction in our diluted share count for the fiscal year. Over the last five years, we have repurchased $1 billion in stock. The additional $200 million share repurchase authorization we announced in September coupled with the 50 percent increase in our dividend announced in May underscores the confidence both the management team and our Board of Directors have in our business model and growth plans.”


Increase in same-store sales:

     

Quarter Ended
Sept. 27, 2015

 

Quarter Ended
Sept. 28, 2014

 

Fiscal Year Ended
Sept. 27, 2015

 

Fiscal Year Ended
Sept. 28, 2014

Jack in the Box:              
  Company   4.1%   3.1%   5.1%   2.0%
  Franchise   6.9%   3.1%   7.0%   2.0%
  System   6.2%   3.1%   6.5%   2.0%
Qdoba:                
  Company   6.1%   7.1%   8.3%   5.7%
  Franchise   7.2%   8.4%   10.4%   6.3%
  System   6.6%   7.7%   9.3%   6.0%
                   

“Jack in the Box system same-store sales increased 6.2 percent for the quarter, and company same-store sales increased 4.1 percent. Transactions grew approximately one percent for the system, while transactions at company restaurants declined approximately one percent as a result of a reduction in discounting as compared to last year. Sales were positive across all dayparts, with breakfast, dinner and late night performing similarly and generating the strongest growth,” Comma said.

Jack in the Box system same-store sales growth for the quarter exceeded that of the QSR sandwich segment by 3.5 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 12-week time period ended September 27, 2015. Included in this segment are 16 of the top QSR sandwich and burger chains in the country.

“Qdoba same-store sales increased 6.6 percent system-wide and 6.1 percent for company restaurants in the fourth quarter, as the simplified menu pricing structure continued to drive average check growth. Our company performance also benefited from another quarter of double-digit growth in catering sales which was partially offset by a 0.3 percent decline in transactions,” Comma said.

Consolidated restaurant operating margin increased by 200 basis points to 20.0 percent of sales in the fourth quarter of 2015, compared with 18.0 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box company restaurants increased 250 basis points to 20.3 percent of sales. The improvement was due primarily to sales leverage, lower food and packaging costs, and the benefit of refranchising. The decrease in food and packaging costs as a percentage of sales resulted from the benefit of price increases, favorable product mix changes and lower discounting, as well as commodity deflation of approximately 0.8 percent in the quarter. Restaurant operating margin for Qdoba company restaurants increased 100 basis points to 19.5 percent of sales, due primarily to sales leverage, including the benefit of the simplified pricing structure introduced in October 2014, and commodity deflation of approximately 1.8 percent, which were partially offset by an increase in labor staffing.

Total franchise costs as a percentage of total franchise revenues improved to 48.6 percent in the fourth quarter from 50.5 percent in the prior year quarter. The improvement was due primarily to higher royalty revenue for both brands and higher rental income from Jack in the Box franchised restaurants resulting from increases in franchise average unit volumes.

SG&A expense for the fourth quarter increased by $3.0 million and was 15.4 percent of revenues as compared to 15.0 percent in the prior year quarter. The increase reflects a $1.2 million increase in pension expense and higher pre-opening costs of $0.9 million resulting from a greater number of Qdoba openings and restaurants under construction in the fourth quarter. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans negatively impacted SG&A by $1.1 million in the fourth quarter of 2015 as compared to a negative impact of $1.5 million in the fourth quarter of 2014, resulting in a year-over-year decrease in SG&A of $0.4 million.

Impairment and other charges, net, increased by $1.4 million in the fourth quarter due primarily to charges relating to the replacement of beverage equipment.

Gains on the sale of company-operated restaurants were $1.2 million in the fourth quarter, or approximately $0.02 per diluted share, which resulted from additional proceeds received as a result of the extension of underlying franchise and lease agreements for previously refranchised Jack in the Box restaurants. This compares to a loss of $5.8 million or approximately $0.10 per diluted share in the fourth quarter of 2014 which related primarily to the sale of Jack in the Box restaurants in the Southeast.

Capital Allocation

The company repurchased approximately 797,000 shares of its common stock in the fourth quarter of 2015 at an average price of $82.22 per share for an aggregate cost of $65.5 million. During fiscal year 2015, the company repurchased approximately 3,743,000 shares at an average price of $84.71 per share, for an aggregate cost of $317.1 million. This essentially completed the $100 million stock-buyback program authorized by the company’s Board of Directors in May 2015. In September 2015, the company’s Board of Directors authorized an additional $200 million stock-buyback program that expires in November 2017.

The company also announced today that on November 12, 2015, its Board of Directors declared a quarterly cash dividend of $0.30 per share on the company’s common stock. The dividend is payable on December 22, 2015, to shareholders of record at the close of business on December 9, 2015.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the first quarter and fiscal year ending October 2, 2016. Fiscal 2016 is a 53-week year, with 16 weeks in the first quarter, 12 weeks in each of the second and third quarters, and 13 weeks in the fourth quarter.

First quarter fiscal year 2016 guidance

  • Same-store sales increase of approximately 1.0 to 3.0 percent at Jack in the Box company restaurants versus a 3.9 percent increase in the year-ago quarter.
  • Same-store sales of flat to up 2.0 percent at Qdoba company restaurants versus a 12.9 percent increase in the year-ago quarter.

Fiscal year 2016 guidance

  • Same-store sales increase of approximately 2.0 to 4.0 percent at Jack in the Box company restaurants.
  • Same-store sales increase of approximately 2.0 to 4.0 percent at Qdoba company restaurants.
  • Commodity inflation of approximately 1 percent for Jack in the Box and deflation of approximately 3 percent at Qdoba.
  • Restaurant operating margin of approximately 20.0 to 20.5 percent.
  • SG&A as a percentage of revenue of approximately 13.0 to 13.5 percent as compared to 14.4 percent in fiscal 2015. The decrease includes a $5.3 million reduction in pension and postretirement expense in fiscal 2016.
  • Impairment and other charges as a percentage of revenue of approximately 80 basis points.
  • Approximately 20 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.
  • Approximately 50 to 60 new Qdoba restaurants, of which approximately half are expected to be company locations.
  • Capital expenditures of $100 to $120 million.
  • Tax rate of approximately 38 percent.
  • Operating earnings per share, which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, ranging from $3.55 to $3.70 in fiscal 2016 as compared to operating earnings per share of $3.00 in fiscal 2015.
  • The estimated benefit of the 53rd week in fiscal 2016 is approximately $0.08 per diluted share.

Conference call

The company will host a conference call for financial analysts and investors on Wednesday, November 18, 2015, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box Inc. corporate website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on November 18.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Eats®, a leader in fast-casual dining, with more than 600 restaurants in 47 states, the District of Columbia and Canada. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.

Safe harbor statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the following: the success of new products and marketing initiatives; 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, and risks relating to expansion into new markets; litigation risks; 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
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)

Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.

    Quarter Ended     Fiscal Year Ended
    Sept. 27,
2015
    Sept. 28,
2014
    Sept. 27,
2015
    Sept. 28,
2014

Diluted earnings per share from continuing operations – GAAP

 

$

0.65

     

$

0.44

   

$

2.95

   

$

2.26

Restructuring charges     -         -       -       0.13
(Gains)/losses from refranchising     (0.02 )       0.10       0.05       0.05
Operating earnings per share – Non-GAAP   $ 0.62       $ 0.54     $ 3.00     $ 2.45
                                 

 

                     
JACK IN THE BOX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)
             
      Quarter Ended     Fiscal Year Ended
     

September 27,
2015

 

September 28,
2014

   

September 27,
2015

 

September 28,
2014

Revenues:                    
Company restaurant sales     $ 265,408     $ 259,912       $ 1,156,863     $ 1,120,912  
Franchise rental revenues       52,666       50,454         226,702       217,182  
Franchise royalties and other       35,994       34,321         156,752       146,037  
        354,068       344,687         1,540,317       1,484,131  
Operating costs and expenses, net:                    
Company restaurant costs:                    
Food and packaging       82,198       83,219         361,988       357,338  
Payroll and employee benefits       71,654       71,329         313,302       308,494  
Occupancy and other       58,421       58,483         246,023       247,861  
Total company restaurant costs       212,273       213,031         921,313       913,693  
Franchise occupancy expenses       39,281       39,290         170,102       169,034  
Franchise support and other costs       3,773       3,526         15,688       13,852  
Selling, general and administrative expenses       54,592       51,550         221,145       206,788  
Impairment and other charges, net       3,689       2,275         11,757       14,908  
(Gains) losses on the sale of company-operated restaurants       (1,214 )     5,790         3,139       3,548  
        312,394       315,462         1,343,144       1,321,823  
Earnings from operations       41,674       29,225         197,173       162,308  
Interest expense, net       4,866       3,290         18,803       15,678  
Earnings from continuing operations and before income taxes       36,808       25,935         178,370       146,630  
Income taxes       13,030       8,492         65,769       51,786  
Earnings from continuing operations       23,778       17,443         112,601       94,844  
Losses from discontinued operations, net of income tax benefit       (637 )     (1,283 )       (3,789 )     (5,894 )
Net earnings     $ 23,141     $ 16,160       $ 108,812     $ 88,950  
                     
Net earnings per share - basic:                    
Earnings from continuing operations     $ 0.66     $ 0.45       $ 3.00     $ 2.33  
Losses from discontinued operations       (0.02 )     (0.03 )       (0.10 )     (0.14 )
Net earnings per share (1)     $ 0.64     $ 0.41       $ 2.89     $ 2.18  
Net earnings per share - diluted:                    
Earnings from continuing operations     $ 0.65     $ 0.44       $ 2.95     $ 2.26  
Losses from discontinued operations       (0.02 )     (0.03 )       (0.10 )     (0.14 )
Net earnings per share (1)     $ 0.63     $ 0.40       $ 2.85     $ 2.12  
                     
Weighted-average shares outstanding:                    
Basic       37,276       38,982         37,587       40,781  
Diluted       36,822       39,918         38,215       41,973  
                     
Cash dividends declared per common share     $ 0.30     $ 0.20       $ 1.00     $ 0.40  
                     
(1) Earnings per share may not add due to rounding
                 

 

           
JACK IN THE BOX INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(Unaudited)
           
     

September 27,
2015

 

September 28,
2014

ASSETS          
Current assets:          
Cash and cash equivalents     $ 17,743     $ 10,578  
Accounts and other receivables, net       47,975       50,014  
Inventories       7,376       7,481  
Prepaid expenses       16,240       36,314  
Deferred income taxes       40,033       36,810  
Assets held for sale       15,516       4,766  
Other current assets       3,106       597  
Total current assets       147,989       146,560  
Property and equipment, at cost:          
Land       112,991       113,622  
Buildings       1,091,237       1,090,360  
Restaurant and other equipment       315,235       291,443  
Construction in progress       43,914       24,522  
        1,563,377       1,519,947  
Less accumulated depreciation and amortization       (835,114 )     (797,818 )
Property and equipment, net       728,263       722,129  
Intangible assets, net       14,765       15,604  
Goodwill       149,027       149,074  
Other assets, net       263,935       237,298  
      $ 1,303,979     $ 1,270,665  
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities:          
Current maturities of long-term debt     $ 26,677     $ 10,871  
Accounts payable       32,137       31,810  
Accrued liabilities       170,575       163,626  
Total current liabilities       229,389       206,307  
Long-term debt, net of current maturities       688,579       497,012  
Other long-term liabilities       370,058       309,435  
Stockholders’ equity:          
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued              
Common stock $0.01 par value, 175,000,000 shares authorized, 81,096,156 and 80,127,387 issued, respectively       811       801  
Capital in excess of par value       402,986       356,727  
Retained earnings       1,316,119       1,244,897  
Accumulated other comprehensive loss       (132,530 )     (90,132 )
Treasury stock, at cost, 45,314,529 and 41,571,752 shares, respectively       (1,571,433 )     (1,254,382 )
Total stockholders’ equity       15,953       257,911  
      $ 1,303,979     $ 1,270,665  
           

 

           
JACK IN THE BOX INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
       
      Fiscal Year
      2015   2014
Cash flows from operating activities:          
Net earnings     $ 108,812     $ 88,950  
Adjustments to reconcile net earnings to net cash provided by operating activities:          
Depreciation and amortization       89,468       91,384  
Deferred finance cost amortization       2,309       2,175  
Excess tax benefits from share-based compensation arrangements       (18,602 )     (17,664 )
Deferred income taxes       (3,191 )     4,152  
Share-based compensation expense       12,420       10,358  
Pension and postretirement expense       18,749       13,760  
Losses (gains) on cash surrender value of company-owned life insurance       1,240       (6,049 )
Losses on the sale of company-operated restaurants       3,139       3,548  
Losses on the disposition of property and equipment       1,847       1,680  
Impairment charges and other       6,815       10,434  
Loss on early retirement of debt             789  
Changes in assets and liabilities, excluding acquisitions and dispositions:          
Accounts and other receivables       (82 )     19,589  
Inventories       105       (300 )
Prepaid expenses and other current assets       35,255       14,051  
Accounts payable       2,281       (627 )
Accrued liabilities       798       7,140  
Pension and postretirement contributions       (25,374 )     (25,349 )
Other       (9,114 )     (16,999 )
Cash flows provided by operating activities       226,875       201,022  
Cash flows from investing activities:          
Purchases of property and equipment       (86,226 )     (60,525 )
Purchases of assets intended for sale and leaseback       (10,396 )     (2,801 )
Proceeds from sale and leaseback of assets             5,698  
Proceeds from the sale of company-operated restaurants       3,951       10,536  
Collections on notes receivable       5,917       2,974  
Acquisition of franchise-operated restaurants             (1,750 )
Other       2,281       2,889  
Cash flows used in investing activities       (84,473 )     (42,979 )
Cash flows from financing activities:          
Borrowings on revolving credit facilities       857,000       652,000  
Repayments of borrowings on revolving credit facilities       (768,000 )     (521,000 )
Proceeds from issuance of debt       300,000       200,000  
Principal repayments on debt       (198,397 )     (193,399 )
Debt issuance costs       (2,030 )     (3,607 )
Dividends paid on common stock       (37,390 )     (15,808 )
Proceeds from issuance of common stock       15,170       31,748  
Repurchases of common stock       (320,163 )     (323,866 )
Excess tax benefits from share-based compensation arrangements       18,602       17,664  
Change in book overdraft             (848 )
Cash flows used in financing activities       (135,208 )     (157,116 )
Effect of exchange rate changes on cash and cash equivalents       (29 )     7  
Net increase in cash and cash equivalents       7,165       934  
Cash and cash equivalents at beginning of period       10,578       9,644  
Cash and cash equivalents at end of period     $ 17,743     $ 10,578  
           

 

JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)

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.

                     
CONSOLIDATED STATEMENTS OF EARNINGS DATA
             
      Quarter Ended     Fiscal Year Ended
     

September 27,
2015

 

September 28,
2014

   

September 27,
2015

 

September 28,
2014

Revenues:                    
Company restaurant sales     75.0 %   75.4 %     75.1 %   75.5 %
Franchise rental revenues     14.9 %   14.6 %     14.7 %   14.6 %
Franchise royalties and other     10.2 %   10.0 %     10.2 %   9.8 %
Total revenues     100.0 %   100.0 %     100.0 %   100.0 %
Operating costs and expenses, net:                    
Company restaurant costs:                    
Food and packaging (1)     31.0 %   32.0 %     31.3 %   31.9 %
Payroll and employee benefits (1)     27.0 %   27.4 %     27.1 %   27.5 %
Occupancy and other (1)     22.0 %   22.5 %     21.3 %   22.1 %
Total company restaurant costs (1)     80.0 %   82.0 %     79.6 %   81.5 %
Franchise occupancy expenses (2)     74.6 %   77.9 %     75.0 %   77.8 %
Franchise support and other costs (3)     10.5 %   10.3 %     10.0 %   9.5 %
Selling, general and administrative expenses     15.4 %   15.0 %     14.4 %   13.9 %
Impairment and other charges, net     1.0 %   0.7 %     0.8 %   1.0 %
(Gains) losses on the sale of company-operated restaurants     (0.3 )%   1.7 %     0.2 %   0.2 %
Earnings from operations     11.8 %   8.5 %     12.8 %   10.9 %
Income tax rate (4)     35.4 %   32.7 %     36.9 %   35.3 %
                     
(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 earnings from continuing operations and before income taxes.
 

The following table presents Jack in the Box and Qdoba company restaurant sales, costs and costs as a percentage of the related sales. Percentages may not add due to rounding.

               
SUPPLEMENTAL COMPANY-OPERATED RESTAURANTS STATEMENTS OF EARNINGS DATA
(Dollars in thousands)
             
      Quarter Ended     Fiscal Year Ended
      September 27, 2015     September 28, 2014     September 27, 2015     September 28, 2014
Jack in the Box:                                        
Company restaurant sales     $ 176,739         $ 177,255         $ 782,525         $ 782,461    
Company restaurant costs:                                        
Food and packaging       55,025   31.1 %       57,472   32.4 %       247,931   31.7 %       254,891   32.6 %
Payroll and employee benefits       48,371   27.4 %       49,687   28.0 %       215,598   27.6 %       218,000   27.9 %
Occupancy and other       37,484   21.2 %       38,468   21.7 %       157,281   20.1 %       164,433   21.0 %
Total company restaurant costs     $ 140,880   79.7 %     $ 145,627   82.2 %     $ 620,810   79.3 %     $ 637,324   81.5 %
Restaurant margin     $ 35,859   20.3 %     $ 31,628   17.8 %     $ 161,715   20.7 %     $ 145,137   18.5 %
                                         
Qdoba:                                        
Company restaurant sales     $ 88,669         $ 82,657         $ 374,338         $ 338,451    
Company restaurant costs:                                        
Food and packaging       27,173   30.6 %       25,747   31.1 %       114,057   30.5 %       102,447   30.3 %
Payroll and employee benefits       23,283   26.3 %       21,642   26.2 %       97,704   26.1 %       90,494   26.7 %
Occupancy and other       20,937   23.6 %       20,015   24.2 %       88,742   23.7 %       83,428   24.6 %
Total company restaurant costs     $ 71,393   80.5 %     $ 67,404   81.5 %     $ 300,503   80.3 %     $ 276,369   81.7 %
Restaurant margin     $ 17,276   19.5 %     $ 15,253   18.5 %     $ 73,835   19.7 %     $ 62,082   18.3 %
                                         

The following table presents the detail of our franchise revenues and costs (dollars in thousands):

                     
JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
                     
      Quarter Ended     Fiscal Year Ended
     

September 27,
2015

 

September 28,
2014

   

September 27,
2015

 

September 28,
2014

Franchise rental revenues

    $ 52,666     $ 50,454       $ 226,702     $ 217,182  
                     
Royalties     $ 35,100     $ 32,992       $ 152,759     $ 140,986  
Re-image contributions to franchisees                           (22 )
Franchise fees and other       894       1,329         3,993       5,073  
Franchise royalties and other     $ 35,994     $ 34,321       $ 156,752     $ 146,037  
Total franchise revenues     $ 88,660     $ 84,775       $ 383,454     $ 363,219  
                     
Rental expense     $ 31,638     $ 31,577       $ 136,974     $ 135,190  
Depreciation and amortization       7,643       7,713         33,128       33,844  
Franchise occupancy expenses       39,281       39,290         170,102       169,034  
Franchise support and other costs       3,773       3,526         15,688       13,852  
Total franchise costs     $ 43,054     $ 42,816       $ 185,790     $ 182,886  
Franchise margin     $ 45,606     $ 41,959       $ 197,664     $ 180,333  
Franchise margin as a % of franchise revenues       51.4 %     49.5 %       51.5 %     49.6 %
                     

 

JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)

The following table summarizes the changes in the number and mix of Jack in the Box and Qdoba company and franchise restaurants in each fiscal year:

                             
      2015     2014
      Company   Franchise   Total     Company   Franchise   Total
Jack in the Box:                            
Beginning of year     431     1,819     2,250       465     1,786     2,251  
New     2     16     18       1     11     12  
Refranchised     (21 )   21           (37 )   37      
Acquired from franchisees     7     (7 )         4     (4 )    
Closed     (6 )   (13 )   (19 )     (2 )   (11 )   (13 )
End of year     413     1,836     2,249       431     1,819     2,250  
% of JIB system     18 %   82 %   100 %     19 %   81 %   100 %
% of consolidated system     56 %   84 %   77 %     58 %   85 %   78 %
Qdoba:                            
Beginning of year     310     328     638       296     319     615  
New     17     22     39       16     22     38  
Refranchised                            
Acquired from franchisees                            
Closed     (5 )   (11 )   (16 )     (2 )   (13 )   (15 )
End of year     322     339     661       310     328     638  
% of Qdoba system     49 %   51 %   100 %     49 %   51 %   100 %
% of consolidated system     44 %   16 %   23 %     42 %   15 %   22 %
Consolidated:                            
Total system     735     2,175     2,910       741     2,147     2,888  
% of consolidated system     25 %   75 %   100 %     26 %   74 %   100 %
                             

SOURCE Jack in the Box Inc.

Contacts:

Carol DiRaimo
Jack in the Box Inc.
Investor Relations
858-571-2407

Brian Luscomb
Jack in the Box Inc.
Media Relations
858-571-2291

###

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