COVER PAGE
COVER PAGE - shares | 9 Months Ended | |
Jul. 07, 2024 | Jul. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 07, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-9390 | |
Entity Registrant Name | JACK IN THE BOX INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-2698708 | |
Entity Address, Address Line One | 9357 Spectrum Center Blvd. | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92123 | |
City Area Code | 858 | |
Local Phone Number | 571-2121 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | JACK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,125,981 | |
Entity Central Index Key | 0000807882 | |
Current Fiscal Year End Date | --09-29 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 07, 2024 | Oct. 01, 2023 |
Current assets: | ||
Cash | $ 21,646 | $ 157,653 |
Restricted cash | 29,112 | 28,254 |
Accounts and other receivables, net | 86,228 | 99,678 |
Inventories | 4,160 | 3,896 |
Prepaid expenses | 12,121 | 16,911 |
Current assets held for sale | 29,408 | 13,925 |
Other current assets | 6,598 | 5,667 |
Total current assets | 189,273 | 325,984 |
Property and equipment: | ||
Property and equipment, at cost | 1,271,679 | 1,258,589 |
Less accumulated depreciation and amortization | (851,443) | (846,559) |
Property and equipment, net | 420,236 | 412,030 |
Other assets: | ||
Operating lease right-of-use assets | 1,425,560 | 1,397,555 |
Intangible assets, net | 10,873 | 11,330 |
Trademarks | 283,500 | 283,500 |
Goodwill | 161,645 | 329,986 |
Other assets, net | 254,132 | 240,707 |
Total other assets | 2,135,710 | 2,263,078 |
Total assets | 2,745,219 | 3,001,092 |
Current liabilities: | ||
Current maturities of long-term debt | 29,999 | 29,964 |
Current operating lease liabilities | 160,852 | 142,518 |
Accounts payable | 68,964 | 84,960 |
Accrued liabilities | 178,686 | 302,178 |
Total current liabilities | 438,501 | 559,620 |
Long-term liabilities: | ||
Long-term debt, net of current maturities | 1,705,927 | 1,724,933 |
Long-term operating lease liabilities, net of current portion | 1,284,718 | 1,265,514 |
Deferred tax liabilities | 19,105 | 26,229 |
Other long-term liabilities | 142,781 | 143,123 |
Total long-term liabilities | 3,152,531 | 3,159,799 |
Stockholders’ deficit: | ||
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued | 0 | 0 |
Common stock $0.01 par value, 175,000,000 shares authorized, 82,819,241 and 82,645,814 issued, respectively | 828 | 826 |
Capital in excess of par value | 531,304 | 520,076 |
Retained earnings | 1,853,118 | 1,937,598 |
Accumulated other comprehensive loss | (50,581) | (51,790) |
Treasury stock, at cost, 63,694,503 and 62,910,964 shares, respectively | (3,180,482) | (3,125,037) |
Total stockholders’ deficit | (845,813) | (718,327) |
Total liabilities and stockholders' equity | $ 2,745,219 | $ 3,001,092 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 07, 2024 | Oct. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 82,819,241 | 82,645,814 |
Treasury stock (in shares) | 63,694,503 | 62,910,964 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Revenues | $ 369,171 | $ 396,942 | $ 1,222,016 | $ 1,319,782 |
Operating costs and expenses, net: | ||||
Food and packaging | 46,251 | 58,556 | 156,297 | 199,799 |
Payroll and employee benefits | 57,917 | 63,871 | 185,025 | 217,547 |
Occupancy and other | 32,365 | 37,274 | 106,773 | 127,920 |
Franchise occupancy expenses | 57,989 | 53,930 | 187,704 | 173,803 |
Franchise support and other costs | 3,853 | 4,079 | 12,907 | 8,623 |
Franchise advertising and other services expenses | 200,201 | 192,875 | ||
Selling, general and administrative expenses | 29,580 | 39,617 | 113,200 | 129,164 |
Depreciation and amortization | 13,827 | 14,460 | 46,206 | 48,460 |
Pre-opening costs | 851 | 182 | 1,918 | 667 |
Impairment of goodwill | 162,624 | 0 | 162,624 | 0 |
Other operating expenses (income), net | 5,641 | 7,656 | 16,343 | 5,135 |
Losses (gains) on the sale of company-operated restaurants | 65 | (5,794) | 1,384 | (10,323) |
Total operating costs and expenses | 471,407 | 333,400 | 1,190,582 | 1,093,670 |
Earnings (loss) from operations | (102,236) | 63,542 | 31,434 | 226,112 |
Other pension and post-retirement expenses, net | 1,579 | 1,608 | 5,264 | 5,359 |
Interest expense, net | 18,402 | 18,662 | 61,491 | 64,167 |
Earnings (loss) before income taxes | (122,217) | 43,272 | (35,321) | 156,586 |
Income taxes | 83 | 14,104 | 23,316 | 47,657 |
Net earnings (loss) | $ (122,300) | $ 29,168 | $ (58,637) | $ 108,929 |
Earnings (loss) per share: | ||||
Basic (in USD per share) | $ (6.29) | $ 1.42 | $ (2.98) | $ 5.25 |
Diluted (in USD per share) | (6.26) | 1.41 | (2.96) | 5.22 |
Cash dividends declared per common share (in USD per share) | $ 0.44 | $ 0.44 | $ 1.32 | $ 1.32 |
Company restaurant sales | ||||
Revenues | $ 166,480 | $ 198,516 | $ 557,618 | $ 671,311 |
Franchise rental revenues | ||||
Revenues | 89,125 | 86,248 | 288,147 | 278,598 |
Operating costs and expenses, net: | ||||
Franchise advertising and other services expenses | 60,444 | 59,569 | ||
Franchise royalties and other | ||||
Revenues | 55,293 | 54,970 | 183,707 | 185,342 |
Franchise contributions for advertising and other services | ||||
Revenues | $ 58,273 | $ 57,208 | $ 192,544 | $ 184,531 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (122,300) | $ 29,168 | $ (58,637) | $ 108,929 |
Other comprehensive income: | ||||
Actuarial losses and prior service costs reclassified to earnings | 493 | 498 | 1,643 | 1,657 |
Tax effect | (130) | (132) | (434) | (436) |
Other comprehensive income (loss), net of taxes | 363 | 366 | 1,209 | 1,221 |
Comprehensive income (loss) | $ (121,937) | $ 29,534 | $ (57,428) | $ 110,150 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 07, 2024 | Jul. 09, 2023 | ||
Cash flows from operating activities: | |||
Net earnings (loss) | $ (58,637) | $ 108,929 | |
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 46,206 | 48,460 | |
Amortization of franchise tenant improvement allowances and incentives | 3,967 | 3,295 | |
Deferred finance cost amortization | 3,722 | 3,915 | |
Excess tax deficiency from share-based compensation arrangements | 5 | 71 | |
Deferred income taxes | (10,314) | 1,648 | |
Share-based compensation expense | 11,018 | 7,991 | |
Pension and post-retirement expense | 5,264 | 5,359 | |
Gains on cash surrender value of company-owned life insurance | (11,776) | (8,331) | |
Losses (gains) on the sale of company-operated restaurants | 1,384 | (10,323) | |
Gains on acquisition of restaurants | (2,357) | 0 | |
Losses (gains) on the disposition of property and equipment, net | [1] | 1,675 | (9,155) |
Impairment charges and other | 163,169 | 6,232 | |
Changes in assets and liabilities, excluding acquisitions: | |||
Accounts and other receivables | 17,385 | 12,902 | |
Inventories | (262) | 658 | |
Prepaid expenses and other current assets | 4,141 | 5,714 | |
Operating lease right-of-use assets and lease liabilities | 6,191 | 5,357 | |
Accounts payable | (16,720) | (28,068) | |
Accrued liabilities | (114,100) | 32,525 | |
Pension and post-retirement contributions | (4,784) | (4,674) | |
Franchise tenant improvement allowance and incentive disbursements | (1,919) | (2,745) | |
Other | (3,995) | 2,311 | |
Cash flows provided by operating activities | 39,263 | 182,071 | |
Cash flows from investing activities: | |||
Purchases of property and equipment | (85,768) | (56,669) | |
Proceeds from the sale of property and equipment | 10,899 | 25,174 | |
Proceeds from the sale and leaseback of assets | 4,413 | 3,673 | |
Proceeds from the sale of company-operated restaurants | 2,168 | 51,845 | |
Other | 0 | 1,465 | |
Cash flows (used in) provided by investing activities | (68,288) | 25,488 | |
Cash flows from financing activities: | |||
Repayments of borrowings on revolving credit facilities | 0 | (50,000) | |
Principal repayments on debt | (22,288) | (22,620) | |
Dividends paid on common stock | (25,633) | (27,198) | |
Proceeds from issuance of common stock | 2 | 263 | |
Repurchases of common stock | (54,999) | (60,431) | |
Payroll tax payments for equity award issuances | (3,206) | (1,593) | |
Cash flows used in financing activities | (106,124) | (161,579) | |
Net (decrease) increase in cash and restricted cash | (135,149) | 45,980 | |
Cash and restricted cash at beginning of period | 185,907 | 136,040 | |
Cash and restricted cash at end of period | $ 50,758 | $ 182,020 | |
[1]In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning balance (in shares) at Oct. 02, 2022 | 82,581 | |||||
Beginning balance at Oct. 02, 2022 | $ (736,192) | $ 826 | $ 508,323 | $ 1,842,947 | $ (53,982) | $ (3,034,306) |
Shares issued under stock plans, including tax benefit (in shares) | 36 | |||||
Share-based compensation | 3,534 | 3,534 | ||||
Dividends declared | (9,154) | 67 | (9,221) | |||
Purchases of treasury stock | (14,999) | (14,999) | ||||
Net earnings | 53,254 | 53,254 | ||||
Other comprehensive income | 489 | 489 | ||||
Ending balance (in shares) at Jan. 22, 2023 | 82,617 | |||||
Ending balance at Jan. 22, 2023 | (703,068) | $ 826 | 511,924 | 1,886,980 | (53,493) | (3,049,305) |
Beginning balance (in shares) at Oct. 02, 2022 | 82,581 | |||||
Beginning balance at Oct. 02, 2022 | (736,192) | $ 826 | 508,323 | 1,842,947 | (53,982) | (3,034,306) |
Net earnings | 108,929 | |||||
Other comprehensive income | 1,221 | |||||
Ending balance (in shares) at Jul. 09, 2023 | 82,646 | |||||
Ending balance at Jul. 09, 2023 | (705,417) | $ 826 | 516,789 | 1,924,466 | (52,761) | (3,094,737) |
Beginning balance (in shares) at Jan. 22, 2023 | 82,617 | |||||
Beginning balance at Jan. 22, 2023 | (703,068) | $ 826 | 511,924 | 1,886,980 | (53,493) | (3,049,305) |
Shares issued under stock plans, including tax benefit (in shares) | 12 | |||||
Share-based compensation | 2,398 | 2,398 | ||||
Dividends declared | (9,066) | 73 | (9,139) | |||
Purchases of treasury stock | (18,580) | (18,580) | ||||
Net earnings | 26,507 | 26,507 | ||||
Other comprehensive income | 366 | 366 | ||||
Ending balance (in shares) at Apr. 16, 2023 | 82,629 | |||||
Ending balance at Apr. 16, 2023 | (701,443) | $ 826 | 514,395 | 1,904,348 | (53,127) | (3,067,885) |
Shares issued under stock plans, including tax benefit (in shares) | 17 | |||||
Shares issued under stock plans, including tax benefit | 263 | $ 0 | 263 | |||
Share-based compensation | 2,059 | 2,059 | ||||
Dividends declared | (8,978) | 72 | (9,050) | |||
Purchases of treasury stock | (26,852) | (26,852) | ||||
Net earnings | 29,168 | 29,168 | ||||
Other comprehensive income | 366 | 366 | ||||
Ending balance (in shares) at Jul. 09, 2023 | 82,646 | |||||
Ending balance at Jul. 09, 2023 | (705,417) | $ 826 | 516,789 | 1,924,466 | (52,761) | (3,094,737) |
Beginning balance (in shares) at Oct. 01, 2023 | 82,646 | |||||
Beginning balance at Oct. 01, 2023 | (718,327) | $ 826 | 520,076 | 1,937,598 | (51,790) | (3,125,037) |
Shares issued under stock plans, including tax benefit (in shares) | 107 | |||||
Shares issued under stock plans, including tax benefit | 1 | $ 1 | ||||
Share-based compensation | 4,820 | 4,820 | ||||
Dividends declared | (8,652) | 74 | (8,726) | |||
Purchases of treasury stock | (25,166) | (25,166) | ||||
Net earnings | 38,683 | 38,683 | ||||
Other comprehensive income | 484 | 484 | ||||
Ending balance (in shares) at Jan. 21, 2024 | 82,753 | |||||
Ending balance at Jan. 21, 2024 | (708,157) | $ 827 | 524,970 | 1,967,555 | (51,306) | (3,150,203) |
Beginning balance (in shares) at Oct. 01, 2023 | 82,646 | |||||
Beginning balance at Oct. 01, 2023 | (718,327) | $ 826 | 520,076 | 1,937,598 | (51,790) | (3,125,037) |
Dividends declared | (25,800) | |||||
Purchases of treasury stock | (55,400) | |||||
Net earnings | (58,637) | |||||
Other comprehensive income | 1,209 | |||||
Ending balance (in shares) at Jul. 07, 2024 | 82,819 | |||||
Ending balance at Jul. 07, 2024 | (845,813) | $ 828 | 531,304 | 1,853,118 | (50,581) | (3,180,482) |
Beginning balance (in shares) at Jan. 21, 2024 | 82,753 | |||||
Beginning balance at Jan. 21, 2024 | (708,157) | $ 827 | 524,970 | 1,967,555 | (51,306) | (3,150,203) |
Shares issued under stock plans, including tax benefit (in shares) | 23 | |||||
Shares issued under stock plans, including tax benefit | 1 | $ 1 | ||||
Share-based compensation | 3,841 | 3,841 | ||||
Dividends declared | (8,515) | 76 | (8,591) | |||
Purchases of treasury stock | (15,133) | (15,133) | ||||
Net earnings | 24,980 | 24,980 | ||||
Other comprehensive income | 362 | 362 | ||||
Ending balance (in shares) at Apr. 14, 2024 | 82,776 | |||||
Ending balance at Apr. 14, 2024 | (702,621) | $ 828 | 528,887 | 1,983,944 | (50,944) | (3,165,336) |
Shares issued under stock plans, including tax benefit (in shares) | 43 | |||||
Shares issued under stock plans, including tax benefit | 0 | $ 0 | ||||
Share-based compensation | 2,357 | 2,357 | ||||
Dividends declared | (8,466) | 60 | (8,526) | |||
Purchases of treasury stock | (15,146) | (15,146) | ||||
Net earnings | (122,300) | (122,300) | ||||
Other comprehensive income | 363 | 363 | ||||
Ending balance (in shares) at Jul. 07, 2024 | 82,819 | |||||
Ending balance at Jul. 07, 2024 | $ (845,813) | $ 828 | $ 531,304 | $ 1,853,118 | $ (50,581) | $ (3,180,482) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jul. 07, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box ® and Del Taco ® restaurant brands. On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. (“Del Taco”) for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. As of July 7, 2024, there were 144 company-operated and 2,051 franchise-operated Jack in the Box restaurants and 165 company-operated and 432 franchise-operated Del Taco restaurants. References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of “we,” “us” and “our.” Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023 (“2023 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2023 Form 10-K. In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Fiscal years 2024 and 2023 include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2024 and 2023 refer to the 12 weeks (“quarter”) and 40 weeks (“year-to-date”) ended July 7, 2024 and July 9, 2023, respectively, unless otherwise indicated. Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. Advertising costs — The Company administers marketing funds at each of its restaurant brands that include contractual contributions. In 2024 and 2023, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales, and marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Year-to-date incremental contributions made by the Company for both brands were $0.6 million in 2024, and less than $0.1 million in 2023, respectively. Total contributions made by the Company are included in “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of earnings and for the quarter and year-to-date totaled $8.2 million and $26.4 million, respectively, in 2024, and $9.0 million and $30.3 million, respectively in 2023. Allowance for credit losses — The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased. The following table summarizes the activity in the allowance for doubtful accounts (in thousands) : Year-to-date July 7, July 9, Balance as of beginning of period $ (4,146) $ (5,975) (Provision) reversal for expected credit losses (233) 1,833 Write-offs charged against the allowance 6 41 Balance as of end of period $ (4,373) $ (4,101) Business combinations — The Company accounts for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill. Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit prior to the disposal. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. The Company’s two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment by determining whether the fair value of our reporting units exceed their carrying values. The Company tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events and circumstances warrant. The Company performs this testing during the third quarter of each year. Our impairment analyses first includes a qualitative assessment to determine whether events or circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. Significant factors considered in this assessment include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance, and results of past impairment tests. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying value, we perform a quantitative impairment test. Refer also to Note 5, Goodwill and Intangible Assets, in the notes to the condensed consolidated financial statements for results of these tests and for additional information. Recent accounting pronouncements — In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure,” which updates reportable segment disclosure requirements. The ASU primarily requires enhanced disclosures about significant segment expenses and information used to assess segment performance and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of adopting this pronouncement in our disclosures, and does not expect it to have a significant impact. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company does not expect this pronouncement to have a significant impact. |
REVENUE
REVENUE | 9 Months Ended |
Jul. 07, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Nature of products and services — The Company derives revenue from retail sales at Jack in the Box and Del Taco company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants. Our franchise arrangements generally provide for an initial franchise fee per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees for both brands, as well as sourcing fees for Jack in the Box franchise agreements. Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the periods ended July 7, 2024 (in thousands) : Quarter Year-to-date Jack in the Box Del Taco Total Jack in the Box Del Taco Total Company restaurant sales $ 100,355 $ 66,125 $ 166,480 $ 331,339 $ 226,279 $ 557,618 Franchise rental revenues 82,154 6,971 89,125 267,350 20,797 288,147 Franchise royalties 46,490 7,287 53,777 153,227 24,055 177,282 Marketing fees 46,412 6,084 52,496 153,055 19,843 172,898 Technology and sourcing fees 5,006 771 5,777 15,905 3,741 19,646 Franchise fees and other services 1,332 184 1,516 5,475 950 6,425 Total revenue $ 281,749 $ 87,422 $ 369,171 $ 926,351 $ 295,665 $ 1,222,016 The following table disaggregates revenue by segment and primary source for the periods ended July 9, 2023 (in thousands) : Quarter Year-to-date Jack in the Box Del Taco Total Jack in the Box Del Taco Total Company restaurant sales $ 96,820 $ 101,696 $ 198,516 $ 318,451 $ 352,860 $ 671,311 Franchise rental revenues 83,271 2,977 86,248 270,277 8,321 278,598 Franchise royalties (1) 47,373 6,130 53,503 161,343 18,721 180,064 Marketing fees 47,323 5,004 52,327 154,153 15,268 169,421 Technology and sourcing fees 4,037 844 4,881 12,881 2,230 15,111 Franchise fees and other services 1,387 80 1,467 4,855 422 5,277 Total revenue $ 280,211 $ 116,731 $ 396,942 $ 921,960 $ 397,822 $ 1,319,782 ____________________________ (1) In October 2022, a Jack in the Box franchise operator paid the Company $7.3 million to sell his restaurants to a new franchisee at the current standard royalty rate, which is lower than the royalty rate in the existing franchise agreements. The payment represented the difference between the royalty rates based on projected future sales for the remaining term of the existing agreements. The payment was non-refundable and not subject to any adjustments based on actual future sales. The Company determined the transaction represented the termination of the existing agreement rather than the transfer of an agreement between franchisees. As such, the $7.3 million was recognized in franchise royalty revenue during the first quarter of 2023. Contract liabilities — Contract liabilities consist of deferred revenue resulting from initial franchise and development fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. The Company classifies these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets. A summary of significant changes in contract liabilities is presented below (in thousands) : Year-to-date July 7, July 9, Deferred franchise and development fees at beginning of period $ 50,471 $ 46,449 Revenue recognized (4,490) (4,140) Additions 4,243 6,665 Deferred franchise and development fees at end of period $ 50,224 $ 48,974 As of July 7, 2024, approximately $8.7 million of development fees related to unopened restaurants are included in deferred revenue. Timing of revenue recognition for development fees related to unopened restaurants is dependent upon the timing of restaurant openings and are recognized over the franchise term at the date of opening. The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of July 7, 2024 (in thousands) : Remainder of 2024 $ 1,224 2025 5,157 2026 4,826 2027 4,489 2028 3,869 Thereafter 21,996 $ 41,561 The Company has applied the optional exemption, as provided for under ASC Topic 606, Revenue from Contracts with Customers , which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty. |
SUMMARY OF REFRANCHISINGS AND A
SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE | 9 Months Ended |
Jul. 07, 2024 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE | SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE Refranchisings — The following table summarizes the number of restaurants sold to franchisees and the loss or gain recognized (dollars in thousands): Quarter Year-to-date July 7, July 9, July 7, July 9, Restaurants sold to Jack in the Box franchisees — — — 5 Restaurants sold to Del Taco franchisees — 50 13 66 Proceeds from the sale of company-operated restaurants (1) $ 178 $ 33,428 $ 2,168 $ 51,845 Broker commissions — (1,014) — (1,014) Net assets sold (primarily property and equipment) 41 (6,705) (567) (10,798) Goodwill related to the sale of company-operated restaurants — (14,194) (105) (21,503) Franchise fees — (1,385) (454) (1,962) Sublease liabilities, net — (3,580) (140) (4,777) Lease termination — — — (393) Other (2) (284) (756) (2,286) (1,075) (Loss) gain on the sale of company-operated restaurants $ (65) $ 5,794 $ (1,384) $ 10,323 ____________________________ (1) Amounts in 2024 and 2023 include additional proceeds received in connection with the extension of franchise and lease agreements from the sale of restaurants in prior years. (2) Year-to-date amount in 2024 includes a $2.2 million impairment of assets in the first quarter of 2024 related to a Del Taco refranchising transaction that closed in the second quarter of 2024. Assets held for sale — Assets classified as held for sale on our condensed consolidated balance sheets as of July 7, 2024 and October 1, 2023 have carrying amounts of $29.4 million and $13.9 million, respectively. These amounts relate to i) company-owned restaurants to be refranchised, ii) operating restaurant properties which we intend to sell to franchisees and/or sell and leaseback with a third party, and iii) closed restaurant properties which we are marketing for sale. |
FRANCHISE ACQUISITIONS
FRANCHISE ACQUISITIONS | 9 Months Ended |
Jul. 07, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
FRANCHISE ACQUISTIONS | FRANCHISE ACQUISITIONS Franchise acquisitions — During the first quarter of 2024, the Company acquired 9 Del Taco franchise restaurants for $86 thousand as part of two separate transactions, and recognized related gains of $2.4 million. This amount is recorded in “Other operating expenses (income), net” in the accompanying condensed consolidated statements of earnings. For further information, see Note 8, O ther Operating Expenses, Net , below in the notes to the condensed consolidated financial statement. The following table summarizes the number of restaurants acquired from franchisees and the gains recognized (dollars in thousands): Year-to-date July 7, Restaurants acquired from Jack in the Box franchisees — Restaurants acquired from Del Taco franchisees 9 Purchase price (1) $ (86) Closing and acquisition costs (43) Property and equipment 3,612 Intangible assets 167 Operating lease right-of-use assets 3,211 Operating lease liabilities (4,505) Gain on the acquisition of franchise-operated restaurants $ 2,357 ____________________________ (1) Comprised of outstanding receivables from franchisee forgiven upon acquisition. The Company did not acquire any Jack in the Box or Del Taco franchise restaurants in the third quarter of 2024, nor in the year-to-date periods ended July 9, 2023. We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 9 Months Ended |
Jul. 07, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET The changes in the carrying amount of goodwill during year-to-date period ended July 7, 2024 was as follows ( in thousands ): Jack in the Box Del Taco Total Goodwill $ 136,027 $ 193,959 $ 329,986 Accumulated impairment losses — — — Balance at October 1, 2023 $ 136,027 $ 193,959 $ 329,986 Impairment of goodwill — (162,624) (162,624) Sale of Del Taco company-operated restaurants to franchisees — (105) (105) Reclassified to assets held for sale (173) (5,439) (5,612) Goodwill 135,854 188,415 324,269 Accumulated impairment losses — (162,624) (162,624) Balance at July 7, 2024 $ 135,854 $ 25,791 $ 161,645 As of the June 9, 2024 testing date, the balance of the Del Taco reporting unit goodwill was $194.0 million. During the third quarter of 2024, the Company identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. The triggering events related to i) a recent negative trend in Del Taco same store sales, ii) lower margins due in part to lower sales and wage increases required in California effective April 1, 2024 under AB 1228, iii) unfavorable changes in the economic environment specifically impacting our industry, including inflation and interest rates, and iv) a sustained lower share price. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $162.6 million. The valuation used a blended approach with a discounted cash flow analysis in conjunction with a market approach. Assumptions and estimates used in determining fair value include future revenues, operating costs, new store openings, capital expenditures, a discount rate that approximates the Company’s weighted average cost of capital and a selection of comparable companies. The Company also performed a quantitative analysis over its indefinte-lived intangible trademark asset, as well as over its definite-lived intangible assets to determine whether any impairment would need to be recognized, noting none. The company also performed a quantitative analysis over its long-lived assets, noting impairment of $0.1 million, which was recorded in the quarter. The Company determined that there was no such triggering event for the Jack in the Box reporting unit. The net carrying amounts of intangible assets other than goodwill with definite lives are as follows ( in thousands ): July 7, October 1, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Definite-lived intangible assets: Sublease assets $ 2,671 $ (564) $ 2,107 $ 2,671 $ (381) $ 2,290 Franchise contracts 9,700 (1,264) 8,436 9,700 (850) 8,850 Reacquired franchise rights 464 (134) 330 297 (107) 190 $ 12,835 $ (1,962) $ 10,873 $ 12,668 $ (1,338) $ 11,330 Indefinite-lived intangible assets: Del Taco trademark $ 283,500 $ — $ 283,500 $ 283,500 $ — $ 283,500 $ 283,500 $ — $ 283,500 $ 283,500 $ — $ 283,500 The following table summarizes, as of July 7, 2024, the estimated amortization expense for each of the next five fiscal years and thereafter ( in thousands ): Remainder of 2024 $ 187 2025 816 2026 814 2027 826 2028 772 Thereafter 7,458 $ 10,873 |
LEASES
LEASES | 9 Months Ended |
Jul. 07, 2024 | |
Leases [Abstract] | |
LEASES | LEASES Nature of leases — The Company owns restaurant sites and also leases restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance, and common area maintenance, which are excluded from the measurement of the lease liability. As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees in connection with refranchising transactions. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.” The following table presents rental income for the periods presented ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Operating lease income - franchise $ 59,767 $ 56,052 $ 197,461 $ 185,285 Variable lease income - franchise 28,618 29,857 89,339 92,836 Amortization of sublease assets and liabilities, net 740 339 1,347 477 Franchise rental revenues $ 89,125 $ 86,248 $ 288,147 $ 278,598 Operating lease income - closed restaurants and other (1) $ 1,755 $ 1,692 $ 5,926 $ 5,717 ____________________________ (1) Includes closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jul. 07, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Prices Significant Significant Fair value measurements as of July 7, 2024: Non-qualified deferred compensation plan (1) $ 17,879 $ 17,879 $ — $ — Total liabilities at fair value $ 17,879 $ 17,879 $ — $ — Fair value measurements as of October 1, 2023: Non-qualified deferred compensation plan (1) $ 15,051 $ 15,051 $ — $ — Total liabilities at fair value $ 15,051 $ 15,051 $ — $ — ____________________________ (1) The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets. The Company did not have any transfers in or out of Level 1, 2 or 3 for its financial liabilities. The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of July 7, 2024 and October 1, 2023 ( in thousands ): July 7, October 1, Carrying Amount Fair Value Carrying Amount Fair Value Series 2019 Class A-2 Notes $ 701,438 $ 670,848 $ 706,875 $ 640,046 Series 2022 Class A-2 Notes $ 1,050,500 $ 953,959 $ 1,067,000 $ 903,056 The fair value of the Class A-2 Notes was estimated using Level 2 inputs based on quoted market prices in markets that are not considered active markets. Non-financial assets and liabilities — The Company’s non-financial instruments, which primarily consist of property and equipment, operating lease right-of-use assets, goodwill and intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on an annual basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value. In connection with our impairment reviews performed during 2024, the Company impaired certain Del Taco assets. For further information, see Note 3, Summary of Refranchisings and Assets Held For Sale , Note 5, Goodwill and Intangible Assets, Net , and Note 8, Other Operating Expenses (Income), Net in the notes to the condensed consolidated financial statements. |
OTHER OPERATING (INCOME) EXPENS
OTHER OPERATING (INCOME) EXPENSES, NET | 9 Months Ended |
Jul. 07, 2024 | |
Restructuring and Related Activities [Abstract] | |
OTHER OPERATING EXPENSE, NET | OTHER OPERATING EXPENSES (INCOME), NET Other operating expenses (income), net in the accompanying condensed consolidated statements of earnings is comprised of the following ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Acquisition, integration, and strategic initiatives (1) $ 4,723 $ 2,463 $ 14,612 $ 5,359 Costs of closed restaurants and other (2) 160 1,272 1,792 4,017 Operating restaurant impairment charges (3) 136 4,395 136 4,395 Accelerated depreciation 95 66 485 519 Gains on acquisition of restaurants (4) — — (2,357) — Losses (gains) on disposition of property and equipment, net (5) 527 (540) 1,675 (9,155) Other operating expenses (income), net $ 5,641 $ 7,656 $ 16,343 $ 5,135 ____________________________ (1) Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees. (2) Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants. (3) In 2023, restaurant impairment charges related to underperforming Del Taco restaurants held for sale. 2024 impairment charges are related to one underperforming Del Taco restaurant. (4) Relates to the gains on acquisition of 9 Del Taco restaurants. (5) In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Jul. 07, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company’s principal business consists of developing, operating and franchising our Jack in the Box and Del Taco restaurant brands, each of which is considered a reportable operating segment. In 2024, our chief operating decision maker revised the method by which they determine performance and strategy for our segments. This change was made to reflect a shared-services model whereby each brand’s results of operations are assessed separately and do not include costs related to certain corporate functions which support both brands. This segment reporting structure reflects the Company’s current management structure, internal reporting method and financial information used in deciding how to allocate Company resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. This change to our segment reporting did not change our reporting units for goodwill. The Company measures and evaluates our segments based on segment revenues and segment profit. The reportable segments do not include an allocation of the costs related to shared service functions, such as accounting/finance, human resources, audit services, legal, tax and treasury; nor do they include certain unallocated costs such share-based compensation. These costs are reflected in the caption “Shared services and unallocated costs.” Our measure of segment profit excludes depreciation and amortization, share-based compensation, company-owned life insurance (“COLI”) gains, net of changes in our non-qualified deferred compensation obligation supported by these policies, acquisition, integration, and strategic initiatives, losses (gains) on the sale of company-operated restaurants, gains on acquisition of restaurants, and amortization of favorable and unfavorable leases and subleases, net. The following table provides information related to our operating segments in each period ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Revenues by segment: Jack in the Box restaurant operations $ 281,749 $ 280,211 $ 926,351 $ 921,960 Del Taco restaurant operations 87,422 116,731 295,665 397,822 Consolidated revenues $ 369,171 $ 396,942 $ 1,222,016 $ 1,319,782 Segment profit reconciliation: Jack in the Box segment profit $ 86,573 $ 88,067 $ 287,295 $ 300,950 Del Taco segment profit 8,884 7,970 29,295 37,476 Shared services and unallocated costs (17,128) (19,810) (60,535) (66,537) Depreciation and amortization 13,827 14,460 46,206 48,460 Acquisition, integration, and strategic initiatives 4,723 2,463 14,612 5,359 Share-based compensation 2,357 2,059 11,018 7,991 Net COLI gains (3,223) (579) (9,289) (7,147) Goodwill impairment 162,624 — 162,624 — Losses (gains) on the sale of company-operated restaurants 65 (5,794) 1,384 (10,323) Gains on acquisition of restaurants — — (2,357) — Amortization of favorable and unfavorable leases and subleases, net 192 76 423 1,437 (Loss) earnings from operations $ (102,236) $ 63,542 $ 31,434 $ 226,112 The Company does not evaluate, manage or measure performance of segments using asset, pension or post-retirement expense, interest income and expense, or income tax information; accordingly, this information by segment is not prepared or disclosed. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jul. 07, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Under GAAP, the Company ordinarily calculates its provision for income taxes at the end of each interim reporting period by computing an estimated annual effective tax rate adjusted for tax items that are discrete to each period. For the third quarter of fiscal year 2024, the Company calculated its interim tax provision based on actual year-to-date results because small changes in forecasted pre-tax book income led to large differences in the estimated annual effective tax rate. For the third quarter and year-to-date of fiscal year 2024, the Company recorded income tax provisions of $0.1 million and $23.3 million, respectively, resulting in effective tax rates of negative 0.1% and negative 66.0%, respectively. The effective tax rates for such periods differed from the U.S. statutory tax rate primarily due to the impairment of non-deductible goodwill partially offset by the reversal of state deferred tax liabilities on basis difference of investments in subsidiaries and non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans. |
RETIREMENT PLANS
RETIREMENT PLANS | 9 Months Ended |
Jul. 07, 2024 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | RETIREMENT PLANS Defined benefit pension plans — The Company sponsors two defined benefit pension plans, a frozen “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. Benefits under both plans are based on the employee’s years of service and compensation over defined periods of employment. Post-retirement healthcare plans — The Company also sponsors two healthcare plans, closed to new participants, that provide post-retirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and they contain other cost-sharing features such as deductibles and coinsurance. Net periodic benefit cost (credit) — The components of net periodic benefit cost (credit) in each period were as follows ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Defined benefit pension plans: Interest cost $ 4,380 $ 4,434 $ 14,599 $ 14,782 Expected return on plan assets (3,457) (3,486) (11,524) (11,619) Actuarial losses (1) 701 708 2,335 2,359 Amortization of unrecognized prior service costs (1) 3 5 11 15 Net periodic benefit cost $ 1,627 $ 1,661 $ 5,421 $ 5,537 Post-retirement healthcare plans: Interest cost $ 164 $ 162 $ 547 $ 539 Actuarial gains (1) (211) (215) (703) (717) Net periodic benefit credit $ (47) $ (53) $ (156) $ (178) ____________________________ (1) Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.” Future cash flows — The Company’s policy is to fund our plans at or above the minimum required by law. As of the date of our last actuarial funding valuation, there was no minimum contribution funding requirement for the Qualified Plan. Details regarding 2024 contributions are as follows ( in thousands ): SERP Post-Retirement Net year-to-date contributions $ 3,930 $ 854 Remaining estimated net contributions during fiscal 2024 $ 1,208 $ 251 The Company continues to evaluate contributions to our Qualified Plan based on changes in pension assets as a result of asset performance in the current market and the economic environment. The Company does not anticipate making any contributions to our Qualified Plan in fiscal 2024. |
STOCKHOLDERS EQUITY AND REPURCH
STOCKHOLDERS EQUITY AND REPURCHAES OF COMMON STOCK | 9 Months Ended |
Jul. 07, 2024 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK | STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK Repurchases of common stock — The Company repurchased 0.8 million shares of its common stock in the year-to-date period ended July 7, 2024 for an aggregate cost of $55.4 million, including applicable excise tax. As of July 7, 2024, there was $195.0 million remaining under share repurchase programs authorized by the Board of Directors which do not expire. Dividends — Through July 7, 2024, the Board of Directors declared three cash dividends of $0.44 per common share totaling $25.8 million. Future dividends are subject to approval by our Board of Directors. |
AVERAGE SHARES OUTSTANDING
AVERAGE SHARES OUTSTANDING | 9 Months Ended |
Jul. 07, 2024 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
AVERAGE SHARES OUTSTANDING | AVERAGE SHARES OUTSTANDING The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Weighted-average shares outstanding – basic 19,454 20,487 19,690 20,738 Effect of potentially dilutive securities: Nonvested stock awards and units 74 161 133 122 Stock options — 1 — 1 Performance share awards 13 — 13 — Weighted-average shares outstanding – diluted 19,541 20,649 19,836 20,861 Excluded from diluted weighted-average shares outstanding: Antidilutive 257 15 22 26 Performance conditions not satisfied at the end of the period 136 105 136 105 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jul. 07, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal matters — The Company assesses contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of July 7, 2024, the Company had accruals of $16.0 million for all of its legal matters in aggregate, presented within “Accrued liabilities” on our consolidated balance sheet. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. The Company regularly reviews contingencies to determine the adequacy of the accruals and related disclosures. The ultimate amount of loss may differ from these estimates. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure and the ultimate amount of loss may differ materially from these estimates in the near term. Gessele v. Jack in the Box Inc. — In August 2010, five former Jack in the Box employees instituted litigation in federal court in Oregon alleging claims under the federal Fair Labor Standards Act and Oregon wage and hour laws. The plaintiffs alleged that Jack in the Box failed to pay non-exempt employees for certain meal breaks and improperly made payroll deductions for shoe purchases and for workers’ compensation expenses, and later added additional claims relating to timing of final pay and related wage and hour claims involving employees of a franchisee. In 2016, the court dismissed the federal claims and those relating to franchise employees. In June 2017, the court granted class certification with respect to state law claims of improper deductions and late payment of final wages. The parties participated in a voluntary mediation on March 16, 2020, but the matter did not settle. On October 24, 2022, a jury awarded plaintiffs approximately $6.4 million in damages and penalties. The Company continues to dispute liability and the damage award and both parties have filed appeals of the verdict. As of July 7, 2024, the Company has accrued the verdict amount above, as well as estimated prejudgment and post-judgment interest and fee award, for an additional $9.1 million. These amounts are included within “Accrued liabilities” on our condensed consolidated balance sheet. The Company will continue to accrue for post-judgment interest until the matter is resolved. Torrez — In March 2014, a former Del Taco employee filed a purported Private Attorneys General Act claim and class action alleging various causes of action under California’s labor, wage, and hour laws. The plaintiff generally alleges Del Taco did not appropriately provide meal and rest breaks and failed to pay wages and reimburse business expenses to its California non-exempt employees. On November 12, 2021, the court granted, in part, the plaintiff's motion for class certification. The parties participated in voluntary mediation on May 24, 2022 and June 3, 2022. On June 4, 2022, we entered into a Settlement Memorandum of Understanding which obligated the Company to pay a gross settlement amount of $50.0 million, for which in exchange we will be released from all claims by the parties. On August 8, 2023, th e court issued its final approval of the settlement and on August 9, 2023 final judgement was entered. The Company made its first payment of half of the settlement amount on August 28, 2023. Payment of the second half was made on November 27, 2023. As of July 7, 2024, the Company does not have any further amounts accrued on our condensed consolidated balance sheet for this matter. J&D Restaurant Group — On April 17, 2019, the trustee for a bankrupt former franchisee filed a complaint generally alleging the Company wrongfully terminated the franchise agreements and unreasonably denied two perspective purchasers the former franchisee presented. The parties participated in a mediation in April 2021, and again in December 2022, but the matter did not settle. The trial commenced on January 9, 2023 and on February 8, 2023, the jury returned a verdict finding the Company had not breached any contracts in terminating the franchise agreements or denying the proposed buyers. However, while the jury also found the Company had not violated the California Unfair Practices Act, it found for the plaintiff on the claim for breach of implied covenant of good faith and fair dealing, and awarded $8.0 million in damages. On May 9, 2023, the court granted the Company’s post-trial motion, overturning the jury verdict and ordering the plaintiff take nothing on its claims. As a result, the Company reversed the prior $8.0 million accrual, and as of July 7, 2024, the Company has no amounts accrued for this case on its condensed consolidated balance sheet. The Plaintiff has appealed the trial court’s post-trial rulings. Other legal matters — In addition to the matters described above, we are subject to normal and routine litigation brought by former or current employees, customers, franchisees, vendors, landlords, shareholders, or others. We intend to defend ourselves in any such matters. Some of these matters may be covered, at least in part, by insurance or other third-party indemnity obligation. We record receivables from third party insurers when recovery has been determined to be probable. Lease guarantees — We remain contingently liable for certain leases relating to our former Qdoba business which we sold in fiscal 2018. Under the Qdoba Purchase Agreement, the buyer has indemnified the Company of all claims related to these guarantees. As of July 7, 2024, the maximum potential liability of future undiscounted payments under these leases is approximately $20.9 million. The lease terms extend for a maximum of approximately 14 more years and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event of default, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. The Company has not recorded a liability for these guarantees as we believe the likelihood of making any future payments is remote. |
SUPPLEMENTAL CONSOLIDATED CASH
SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION | 9 Months Ended |
Jul. 07, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION | SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands) Year-to-date July 7, July 9, Non-cash investing and financing transactions: Decrease in obligations for purchases of property and equipment $ 3,825 $ 2,472 Increase in dividends accrued or converted to common stock equivalents $ 210 $ 212 Right-of use assets obtained in exchange for operating lease obligations $ 165,200 $ 181,874 Right-of use assets obtained in exchange for finance lease obligations $ — $ 870 |
SUPPLEMENTAL CONSOLIDATED BALAN
SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION | 9 Months Ended |
Jul. 07, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION | SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands) July 7, October 1, Accounts and other receivables, net: Trade $ 79,971 $ 93,660 Notes receivable, current portion 2,036 2,262 Income tax receivable 832 949 Other 7,762 6,953 Allowance for doubtful accounts (4,373) (4,146) $ 86,228 $ 99,678 Property and equipment, net: Land $ 94,467 $ 92,007 Buildings 962,745 968,221 Restaurant and other equipment 156,497 166,714 Construction in progress 57,970 31,647 1,271,679 1,258,589 Less accumulated depreciation and amortization (851,443) (846,559) $ 420,236 $ 412,030 Other assets, net: Company-owned life insurance policies $ 124,981 $ 113,205 Deferred rent receivable 41,161 41,947 Franchise tenant improvement allowance 42,306 43,590 Notes receivable, less current portion 10,169 11,927 Other 35,515 30,038 $ 254,132 $ 240,707 Accrued liabilities: Legal accruals $ 16,045 $ 40,877 Income tax liabilities — 58,155 Payroll and related taxes 36,069 49,521 Insurance 29,017 31,349 Sales and property taxes 23,117 30,508 Deferred rent income 16,812 19,397 Advertising 9,078 15,597 Deferred franchise and development fees 6,534 5,952 Other 42,014 50,822 $ 178,686 $ 302,178 Other long-term liabilities: Defined benefit pension plans $ 46,897 $ 48,375 Deferred franchise and development fees 43,690 44,522 Other 52,194 50,226 $ 142,781 $ 143,123 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jul. 07, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Refranchising — Subsequent to the end of the third quarter of 2024, the Company signed agreements to refranchise 27 Del Taco restaurants in Los Angeles and surrounding cities for $13.1 million Dividends — On August 2, 2024, the Board of Directors declared a cash dividend of $0.44 per common share, to be paid on September 19, 2024, to shareholders of record as of the close of business on August 30, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Jul. 07, 2024 | Apr. 14, 2024 | Jul. 09, 2023 | Apr. 16, 2023 | Jan. 21, 2024 | Jan. 22, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net earnings | $ (122,300) | $ 24,980 | $ 29,168 | $ 26,507 | $ 38,683 | $ 53,254 | $ (58,637) | $ 108,929 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jul. 07, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Jul. 07, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box ® and Del Taco ® restaurant brands. |
Basis of presentation | Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023 (“2023 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2023 Form 10-K. In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year. |
Fiscal year | Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Fiscal years 2024 and 2023 include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2024 and 2023 refer to the 12 weeks (“quarter”) and 40 weeks (“year-to-date”) ended July 7, 2024 and July 9, 2023, respectively, unless otherwise indicated. |
Use of estimates | Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. |
Advertising costs | Advertising costs — The Company administers marketing funds at each of its restaurant brands that include contractual contributions. In 2024 and 2023, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales, and marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Year-to-date incremental contributions made by the Company for both brands were $0.6 million in 2024, and less than $0.1 million in 2023, respectively. Total contributions made by the Company are included in “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of earnings and for the quarter and year-to-date totaled $8.2 million and $26.4 million, respectively, in 2024, and $9.0 million and $30.3 million, respectively in 2023. |
Allowance for credit losses | Allowance for credit losses — The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased. |
Business combinations | Business combinations — The Company accounts for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill. |
Recent accounting pronouncements | Recent accounting pronouncements — In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure,” which updates reportable segment disclosure requirements. The ASU primarily requires enhanced disclosures about significant segment expenses and information used to assess segment performance and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impact of adopting this pronouncement in our disclosures, and does not expect it to have a significant impact. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company does not expect this pronouncement to have a significant impact. |
Goodwill and Intangible Assets, Policy | Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit prior to the disposal. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. The Company’s two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment by determining whether the fair value of our reporting units exceed their carrying values. The Company tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events and circumstances warrant. The Company performs this testing during the third quarter of each year. Our impairment analyses first includes a qualitative assessment to determine whether events or circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. Significant factors considered in this assessment include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance, and results of past impairment tests. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying value, we perform a quantitative impairment test. Refer also to Note 5, Goodwill and Intangible Assets, |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Allowance for Doubtful Accounts | The following table summarizes the activity in the allowance for doubtful accounts (in thousands) : Year-to-date July 7, July 9, Balance as of beginning of period $ (4,146) $ (5,975) (Provision) reversal for expected credit losses (233) 1,833 Write-offs charged against the allowance 6 41 Balance as of end of period $ (4,373) $ (4,101) |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the periods ended July 7, 2024 (in thousands) : Quarter Year-to-date Jack in the Box Del Taco Total Jack in the Box Del Taco Total Company restaurant sales $ 100,355 $ 66,125 $ 166,480 $ 331,339 $ 226,279 $ 557,618 Franchise rental revenues 82,154 6,971 89,125 267,350 20,797 288,147 Franchise royalties 46,490 7,287 53,777 153,227 24,055 177,282 Marketing fees 46,412 6,084 52,496 153,055 19,843 172,898 Technology and sourcing fees 5,006 771 5,777 15,905 3,741 19,646 Franchise fees and other services 1,332 184 1,516 5,475 950 6,425 Total revenue $ 281,749 $ 87,422 $ 369,171 $ 926,351 $ 295,665 $ 1,222,016 The following table disaggregates revenue by segment and primary source for the periods ended July 9, 2023 (in thousands) : Quarter Year-to-date Jack in the Box Del Taco Total Jack in the Box Del Taco Total Company restaurant sales $ 96,820 $ 101,696 $ 198,516 $ 318,451 $ 352,860 $ 671,311 Franchise rental revenues 83,271 2,977 86,248 270,277 8,321 278,598 Franchise royalties (1) 47,373 6,130 53,503 161,343 18,721 180,064 Marketing fees 47,323 5,004 52,327 154,153 15,268 169,421 Technology and sourcing fees 4,037 844 4,881 12,881 2,230 15,111 Franchise fees and other services 1,387 80 1,467 4,855 422 5,277 Total revenue $ 280,211 $ 116,731 $ 396,942 $ 921,960 $ 397,822 $ 1,319,782 ____________________________ |
Changes in Contract Liabilities | A summary of significant changes in contract liabilities is presented below (in thousands) : Year-to-date July 7, July 9, Deferred franchise and development fees at beginning of period $ 50,471 $ 46,449 Revenue recognized (4,490) (4,140) Additions 4,243 6,665 Deferred franchise and development fees at end of period $ 50,224 $ 48,974 |
Remaining Performance Obligation, Expected Timing of Satisfaction | The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of July 7, 2024 (in thousands) : Remainder of 2024 $ 1,224 2025 5,157 2026 4,826 2027 4,489 2028 3,869 Thereafter 21,996 $ 41,561 |
SUMMARY OF REFRANCHISINGS AND_2
SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | |
Schedule of Refranchisings and Franchise Acquisitions | The following table summarizes the number of restaurants sold to franchisees and the loss or gain recognized (dollars in thousands): Quarter Year-to-date July 7, July 9, July 7, July 9, Restaurants sold to Jack in the Box franchisees — — — 5 Restaurants sold to Del Taco franchisees — 50 13 66 Proceeds from the sale of company-operated restaurants (1) $ 178 $ 33,428 $ 2,168 $ 51,845 Broker commissions — (1,014) — (1,014) Net assets sold (primarily property and equipment) 41 (6,705) (567) (10,798) Goodwill related to the sale of company-operated restaurants — (14,194) (105) (21,503) Franchise fees — (1,385) (454) (1,962) Sublease liabilities, net — (3,580) (140) (4,777) Lease termination — — — (393) Other (2) (284) (756) (2,286) (1,075) (Loss) gain on the sale of company-operated restaurants $ (65) $ 5,794 $ (1,384) $ 10,323 ____________________________ (1) Amounts in 2024 and 2023 include additional proceeds received in connection with the extension of franchise and lease agreements from the sale of restaurants in prior years. (2) |
FRANCHISE ACQUISITIONS (Tables)
FRANCHISE ACQUISITIONS (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Summary of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the number of restaurants acquired from franchisees and the gains recognized (dollars in thousands): Year-to-date July 7, Restaurants acquired from Jack in the Box franchisees — Restaurants acquired from Del Taco franchisees 9 Purchase price (1) $ (86) Closing and acquisition costs (43) Property and equipment 3,612 Intangible assets 167 Operating lease right-of-use assets 3,211 Operating lease liabilities (4,505) Gain on the acquisition of franchise-operated restaurants $ 2,357 ____________________________ (1) Comprised of outstanding receivables from franchisee forgiven upon acquisition. |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during year-to-date period ended July 7, 2024 was as follows ( in thousands ): Jack in the Box Del Taco Total Goodwill $ 136,027 $ 193,959 $ 329,986 Accumulated impairment losses — — — Balance at October 1, 2023 $ 136,027 $ 193,959 $ 329,986 Impairment of goodwill — (162,624) (162,624) Sale of Del Taco company-operated restaurants to franchisees — (105) (105) Reclassified to assets held for sale (173) (5,439) (5,612) Goodwill 135,854 188,415 324,269 Accumulated impairment losses — (162,624) (162,624) Balance at July 7, 2024 $ 135,854 $ 25,791 $ 161,645 |
Schedule of Intangible Assets | The net carrying amounts of intangible assets other than goodwill with definite lives are as follows ( in thousands ): July 7, October 1, Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Definite-lived intangible assets: Sublease assets $ 2,671 $ (564) $ 2,107 $ 2,671 $ (381) $ 2,290 Franchise contracts 9,700 (1,264) 8,436 9,700 (850) 8,850 Reacquired franchise rights 464 (134) 330 297 (107) 190 $ 12,835 $ (1,962) $ 10,873 $ 12,668 $ (1,338) $ 11,330 Indefinite-lived intangible assets: Del Taco trademark $ 283,500 $ — $ 283,500 $ 283,500 $ — $ 283,500 $ 283,500 $ — $ 283,500 $ 283,500 $ — $ 283,500 |
Schedule of the Estimated Amortization Expense | The following table summarizes, as of July 7, 2024, the estimated amortization expense for each of the next five fiscal years and thereafter ( in thousands ): Remainder of 2024 $ 187 2025 816 2026 814 2027 826 2028 772 Thereafter 7,458 $ 10,873 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Leases [Abstract] | |
Lease Income | The following table presents rental income for the periods presented ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Operating lease income - franchise $ 59,767 $ 56,052 $ 197,461 $ 185,285 Variable lease income - franchise 28,618 29,857 89,339 92,836 Amortization of sublease assets and liabilities, net 740 339 1,347 477 Franchise rental revenues $ 89,125 $ 86,248 $ 288,147 $ 278,598 Operating lease income - closed restaurants and other (1) $ 1,755 $ 1,692 $ 5,926 $ 5,717 ____________________________ (1) Includes closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Prices Significant Significant Fair value measurements as of July 7, 2024: Non-qualified deferred compensation plan (1) $ 17,879 $ 17,879 $ — $ — Total liabilities at fair value $ 17,879 $ 17,879 $ — $ — Fair value measurements as of October 1, 2023: Non-qualified deferred compensation plan (1) $ 15,051 $ 15,051 $ — $ — Total liabilities at fair value $ 15,051 $ 15,051 $ — $ — ____________________________ (1) The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets. The Company did not have any transfers in or out of Level 1, 2 or 3 for its financial liabilities. |
Carrying Value and Estimated Fair Value of Notes | The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of July 7, 2024 and October 1, 2023 ( in thousands ): July 7, October 1, Carrying Amount Fair Value Carrying Amount Fair Value Series 2019 Class A-2 Notes $ 701,438 $ 670,848 $ 706,875 $ 640,046 Series 2022 Class A-2 Notes $ 1,050,500 $ 953,959 $ 1,067,000 $ 903,056 |
OTHER OPERATING (INCOME) EXPE_2
OTHER OPERATING (INCOME) EXPENSES, NET (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Restructuring and Related Activities [Abstract] | |
Impairment, Disposition of Property and Equipment, Restaurant Closing Costs and Restructuring | Other operating expenses (income), net in the accompanying condensed consolidated statements of earnings is comprised of the following ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Acquisition, integration, and strategic initiatives (1) $ 4,723 $ 2,463 $ 14,612 $ 5,359 Costs of closed restaurants and other (2) 160 1,272 1,792 4,017 Operating restaurant impairment charges (3) 136 4,395 136 4,395 Accelerated depreciation 95 66 485 519 Gains on acquisition of restaurants (4) — — (2,357) — Losses (gains) on disposition of property and equipment, net (5) 527 (540) 1,675 (9,155) Other operating expenses (income), net $ 5,641 $ 7,656 $ 16,343 $ 5,135 ____________________________ (1) Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees. (2) Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants. (3) In 2023, restaurant impairment charges related to underperforming Del Taco restaurants held for sale. 2024 impairment charges are related to one underperforming Del Taco restaurant. (4) Relates to the gains on acquisition of 9 Del Taco restaurants. (5) In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The following table provides information related to our operating segments in each period ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Revenues by segment: Jack in the Box restaurant operations $ 281,749 $ 280,211 $ 926,351 $ 921,960 Del Taco restaurant operations 87,422 116,731 295,665 397,822 Consolidated revenues $ 369,171 $ 396,942 $ 1,222,016 $ 1,319,782 Segment profit reconciliation: Jack in the Box segment profit $ 86,573 $ 88,067 $ 287,295 $ 300,950 Del Taco segment profit 8,884 7,970 29,295 37,476 Shared services and unallocated costs (17,128) (19,810) (60,535) (66,537) Depreciation and amortization 13,827 14,460 46,206 48,460 Acquisition, integration, and strategic initiatives 4,723 2,463 14,612 5,359 Share-based compensation 2,357 2,059 11,018 7,991 Net COLI gains (3,223) (579) (9,289) (7,147) Goodwill impairment 162,624 — 162,624 — Losses (gains) on the sale of company-operated restaurants 65 (5,794) 1,384 (10,323) Gains on acquisition of restaurants — — (2,357) — Amortization of favorable and unfavorable leases and subleases, net 192 76 423 1,437 (Loss) earnings from operations $ (102,236) $ 63,542 $ 31,434 $ 226,112 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost (credit) in each period were as follows ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Defined benefit pension plans: Interest cost $ 4,380 $ 4,434 $ 14,599 $ 14,782 Expected return on plan assets (3,457) (3,486) (11,524) (11,619) Actuarial losses (1) 701 708 2,335 2,359 Amortization of unrecognized prior service costs (1) 3 5 11 15 Net periodic benefit cost $ 1,627 $ 1,661 $ 5,421 $ 5,537 Post-retirement healthcare plans: Interest cost $ 164 $ 162 $ 547 $ 539 Actuarial gains (1) (211) (215) (703) (717) Net periodic benefit credit $ (47) $ (53) $ (156) $ (178) ____________________________ (1) Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.” |
Schedule of Defined Benefit Plan Contribution | Details regarding 2024 contributions are as follows ( in thousands ): SERP Post-Retirement Net year-to-date contributions $ 3,930 $ 854 Remaining estimated net contributions during fiscal 2024 $ 1,208 $ 251 |
AVERAGE SHARES OUTSTANDING (Tab
AVERAGE SHARES OUTSTANDING (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | |
Reconciliation Of Basic Weighted-Average Shares Outstanding To Diluted Weighted-Average Shares Outstanding | The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding ( in thousands ): Quarter Year-to-date July 7, July 9, July 7, July 9, Weighted-average shares outstanding – basic 19,454 20,487 19,690 20,738 Effect of potentially dilutive securities: Nonvested stock awards and units 74 161 133 122 Stock options — 1 — 1 Performance share awards 13 — 13 — Weighted-average shares outstanding – diluted 19,541 20,649 19,836 20,861 Excluded from diluted weighted-average shares outstanding: Antidilutive 257 15 22 26 Performance conditions not satisfied at the end of the period 136 105 136 105 |
SUPPLEMENTAL CONSOLIDATED CAS_2
SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Supplemental Cash Flow Information [Abstract] | |
Additional Information Related To Cash Flows | Year-to-date July 7, July 9, Non-cash investing and financing transactions: Decrease in obligations for purchases of property and equipment $ 3,825 $ 2,472 Increase in dividends accrued or converted to common stock equivalents $ 210 $ 212 Right-of use assets obtained in exchange for operating lease obligations $ 165,200 $ 181,874 Right-of use assets obtained in exchange for finance lease obligations $ — $ 870 |
SUPPLEMENTAL CONSOLIDATED BAL_2
SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (Tables) | 9 Months Ended |
Jul. 07, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Supplemental Balance Sheet Disclosures | July 7, October 1, Accounts and other receivables, net: Trade $ 79,971 $ 93,660 Notes receivable, current portion 2,036 2,262 Income tax receivable 832 949 Other 7,762 6,953 Allowance for doubtful accounts (4,373) (4,146) $ 86,228 $ 99,678 Property and equipment, net: Land $ 94,467 $ 92,007 Buildings 962,745 968,221 Restaurant and other equipment 156,497 166,714 Construction in progress 57,970 31,647 1,271,679 1,258,589 Less accumulated depreciation and amortization (851,443) (846,559) $ 420,236 $ 412,030 Other assets, net: Company-owned life insurance policies $ 124,981 $ 113,205 Deferred rent receivable 41,161 41,947 Franchise tenant improvement allowance 42,306 43,590 Notes receivable, less current portion 10,169 11,927 Other 35,515 30,038 $ 254,132 $ 240,707 Accrued liabilities: Legal accruals $ 16,045 $ 40,877 Income tax liabilities — 58,155 Payroll and related taxes 36,069 49,521 Insurance 29,017 31,349 Sales and property taxes 23,117 30,508 Deferred rent income 16,812 19,397 Advertising 9,078 15,597 Deferred franchise and development fees 6,534 5,952 Other 42,014 50,822 $ 178,686 $ 302,178 Other long-term liabilities: Defined benefit pension plans $ 46,897 $ 48,375 Deferred franchise and development fees 43,690 44,522 Other 52,194 50,226 $ 142,781 $ 143,123 |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 07, 2024 USD ($) | Jul. 09, 2023 USD ($) | Jul. 07, 2024 USD ($) reporting_unit restaurant segment | Jul. 09, 2023 USD ($) | |
Net Investment Income [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Contractual obligation | $ | $ 0.6 | $ 0.1 | ||
Marketing and advertising expense | $ | $ 8.2 | $ 9 | $ 26.4 | $ 30.3 |
Number of reporting units | reporting_unit | 2 | |||
Jack in the Box restaurant operations | ||||
Net Investment Income [Line Items] | ||||
Contractual obligation (percent) | 5% | 5% | ||
Del Taco | ||||
Net Investment Income [Line Items] | ||||
Contractual obligation (percent) | 4% | |||
Company operated | Jack in the Box restaurant operations | ||||
Net Investment Income [Line Items] | ||||
Number of operating segments | 144 | |||
Company operated | Del Taco | ||||
Net Investment Income [Line Items] | ||||
Number of operating segments | 165 | |||
Franchise-operated | Jack in the Box restaurant operations | ||||
Net Investment Income [Line Items] | ||||
Number of operating segments | 2,051 | |||
Franchise-operated | Del Taco | ||||
Net Investment Income [Line Items] | ||||
Number of operating segments | 432 |
BASIS OF PRESENTATION - Effect
BASIS OF PRESENTATION - Effect of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 07, 2024 | Jul. 09, 2023 | |
Allowance for Credit Loss [Roll Forward] | ||
Balance as of beginning of period | $ (4,146) | $ (5,975) |
(Provision) reversal for expected credit losses | (233) | 1,833 |
Write-offs charged against the allowance | 6 | 41 |
Balance as of end of period | $ (4,373) | $ (4,101) |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2022 | Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Disaggregation of Revenue [Line Items] | |||||
Term of franchise | 20 years | ||||
Revenues | $ 369,171 | $ 396,942 | $ 1,222,016 | $ 1,319,782 | |
Development fees | 8,700 | 8,700 | |||
Franchise royalties and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 55,293 | $ 54,970 | $ 183,707 | $ 185,342 | |
Franchise Operator | |||||
Disaggregation of Revenue [Line Items] | |||||
Proceeds from sale of franchise | $ 7,300 | ||||
Franchise Operator | Franchise royalties and other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 7,300 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 369,171 | $ 396,942 | $ 1,222,016 | $ 1,319,782 |
Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 281,749 | 280,211 | 926,351 | 921,960 |
Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 87,422 | 116,731 | 295,665 | 397,822 |
Company restaurant sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 166,480 | 198,516 | 557,618 | 671,311 |
Company restaurant sales | Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 100,355 | 96,820 | 331,339 | 318,451 |
Company restaurant sales | Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66,125 | 101,696 | 226,279 | 352,860 |
Franchise rental revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 89,125 | 86,248 | 288,147 | 278,598 |
Franchise rental revenues | Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 82,154 | 83,271 | 267,350 | 270,277 |
Franchise rental revenues | Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,971 | 2,977 | 20,797 | 8,321 |
Franchise royalties (1) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 53,777 | 53,503 | 177,282 | 180,064 |
Franchise royalties (1) | Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 46,490 | 47,373 | 153,227 | 161,343 |
Franchise royalties (1) | Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,287 | 6,130 | 24,055 | 18,721 |
Marketing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 52,496 | 52,327 | 172,898 | 169,421 |
Marketing fees | Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 46,412 | 47,323 | 153,055 | 154,153 |
Marketing fees | Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,084 | 5,004 | 19,843 | 15,268 |
Technology and sourcing fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,777 | 4,881 | 19,646 | 15,111 |
Technology and sourcing fees | Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,006 | 4,037 | 15,905 | 12,881 |
Technology and sourcing fees | Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 771 | 844 | 3,741 | 2,230 |
Franchise fees and other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,516 | 1,467 | 6,425 | 5,277 |
Franchise fees and other services | Jack in the Box restaurant operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,332 | 1,387 | 5,475 | 4,855 |
Franchise fees and other services | Del Taco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 184 | $ 80 | $ 950 | $ 422 |
REVENUE - Changes in Contract L
REVENUE - Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 07, 2024 | Jul. 09, 2023 | |
Movement in Deferred Revenue [Roll Forward] | ||
Deferred franchise and development fees at beginning of period | $ 50,471 | $ 46,449 |
Revenue recognized | (4,490) | (4,140) |
Additions | 4,243 | 6,665 |
Deferred franchise and development fees at end of period | $ 50,224 | $ 48,974 |
REVENUE - Estimated Future Fran
REVENUE - Estimated Future Franchise Fees (Details) $ in Thousands | Jul. 07, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 41,561 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-08 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 1,224 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-07 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 5,157 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-06 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 4,826 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 4,489 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 3,869 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-07-09 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 21,996 |
REVENUE - Estimated Future Fr_2
REVENUE - Estimated Future Franchise Fees, Period (Details) | Jul. 07, 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-08 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-07 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-06 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-05 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-03 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-07-09 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period |
SUMMARY OF REFRANCHISINGS AND_3
SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE - Refranchisings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jul. 07, 2024 USD ($) restaurant | Jul. 09, 2023 USD ($) restaurant | Jul. 07, 2024 USD ($) restaurant | Jul. 09, 2023 USD ($) restaurant | ||||
Franchisor Disclosure [Line Items] | |||||||
Goodwill related to the sale of company-operated restaurants | $ (105) | ||||||
(Loss) gain on the sale of company-operated restaurants | [1] | $ (527) | $ 540 | (1,675) | $ 9,155 | ||
Operating restaurant impairment charges | 136 | 4,395 | 136 | 4,395 | |||
Jack in the Box restaurant operations | |||||||
Franchisor Disclosure [Line Items] | |||||||
Goodwill related to the sale of company-operated restaurants | 0 | ||||||
Del Taco | |||||||
Franchisor Disclosure [Line Items] | |||||||
Goodwill related to the sale of company-operated restaurants | (105) | ||||||
Operating restaurant impairment charges | 2,200 | ||||||
Company operated | |||||||
Franchisor Disclosure [Line Items] | |||||||
Proceeds from the sale of company-operated restaurants | 178 | [2] | 33,428 | [2] | 2,168 | 51,845 | |
Broker commissions | 0 | (1,014) | 0 | (1,014) | |||
Net assets sold (primarily property and equipment) | 41 | 6,705 | 567 | 10,798 | |||
Goodwill related to the sale of company-operated restaurants | 0 | (14,194) | (105) | (21,503) | |||
Franchise fees | 0 | (1,385) | (454) | (1,962) | |||
Sublease liabilities, net | 0 | (3,580) | (140) | (4,777) | |||
Lease termination | 0 | 0 | 0 | (393) | |||
Other | (284) | [3] | (756) | [3] | (2,286) | (1,075) | |
(Loss) gain on the sale of company-operated restaurants | $ (65) | $ 5,794 | $ (1,384) | $ 10,323 | |||
Company operated | Jack in the Box restaurant operations | |||||||
Franchisor Disclosure [Line Items] | |||||||
Refranchising agreements | restaurant | 0 | 0 | 0 | 5 | |||
Company operated | Del Taco | |||||||
Franchisor Disclosure [Line Items] | |||||||
Refranchising agreements | restaurant | 0 | 50 | 13 | 66 | |||
[1]In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale[2] Amounts in 2024 and 2023 include additional proceeds received in connection with the extension of franchise and lease agreements from the sale of restaurants in prior years. |
SUMMARY OF REFRANCHISINGS AND_4
SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE - Narrative (Details) - USD ($) $ in Thousands | Jul. 07, 2024 | Oct. 01, 2023 |
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract] | ||
Current assets held for sale | $ 29,408 | $ 13,925 |
FRANCHISE ACQUISITIONS - Narrat
FRANCHISE ACQUISITIONS - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jul. 07, 2024 USD ($) | [1] | Apr. 14, 2024 USD ($) | Jul. 09, 2023 USD ($) | [1] | Jul. 07, 2024 USD ($) | Jul. 07, 2024 restaurant | Jul. 07, 2024 restaurants | Jul. 09, 2023 USD ($) | |
Asset Acquisition [Line Items] | |||||||||
Purchase price | $ (86) | ||||||||
Gains on acquisition of restaurants | $ 0 | $ 0 | $ 2,357 | $ 0 | |||||
Del Taco | |||||||||
Asset Acquisition [Line Items] | |||||||||
Number of restaurants acquired from franchisees | 9 | 9 | |||||||
Purchase price | $ (86) | ||||||||
Gains on acquisition of restaurants | $ 2,400 | ||||||||
[1]. |
FRANCHISE ACQUISITIONS - Schedu
FRANCHISE ACQUISITIONS - Schedule of Assets and Liabilities Assumed (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 07, 2024 USD ($) | Jul. 09, 2023 USD ($) | [1] | Jul. 07, 2024 USD ($) restaurant | Jul. 09, 2023 USD ($) restaurant | ||
Asset Acquisition [Line Items] | ||||||
Purchase price | $ (86) | |||||
Closing and acquisition costs | (43) | |||||
Property and equipment | $ 3,612 | 3,612 | ||||
Intangible assets | 167 | 167 | ||||
Operating lease right-of-use assets | 3,211 | 3,211 | ||||
Operating lease liabilities | (4,505) | (4,505) | ||||
Gains on acquisition of restaurants | $ 0 | [1] | $ 0 | $ 2,357 | $ 0 | |
Jack in the Box restaurant operations | ||||||
Asset Acquisition [Line Items] | ||||||
Number of restaurants acquired from franchisees | restaurant | 0 | 0 | ||||
[1]. |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Carrying Amount of Goodwill - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 07, 2024 | Apr. 14, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | Oct. 01, 2023 | |
Goodwill [Roll Forward] | ||||||
Goodwill | $ 324,269 | $ 324,269 | $ 329,986 | |||
Accumulated impairment losses | (162,624) | (162,624) | 0 | |||
Goodwill, beginning balance | 329,986 | |||||
Impairment of goodwill | (162,624) | $ 0 | (162,624) | $ 0 | ||
Sale of Del Taco company-operated restaurants to franchisees | (105) | |||||
Reclassified to assets held for sale | (5,612) | |||||
Goodwill, ending balance | 161,645 | 161,645 | ||||
Jack in the Box restaurant operations | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 135,854 | 135,854 | 136,027 | |||
Accumulated impairment losses | 0 | 0 | 0 | |||
Goodwill, beginning balance | 136,027 | |||||
Impairment of goodwill | 0 | |||||
Sale of Del Taco company-operated restaurants to franchisees | 0 | |||||
Reclassified to assets held for sale | (173) | |||||
Goodwill, ending balance | 135,854 | 135,854 | ||||
Del Taco | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill | 188,415 | 188,415 | 193,959 | |||
Accumulated impairment losses | (162,624) | (162,624) | $ 0 | |||
Goodwill, beginning balance | 193,959 | |||||
Impairment of goodwill | $ (162,600) | (162,624) | ||||
Sale of Del Taco company-operated restaurants to franchisees | (105) | |||||
Reclassified to assets held for sale | (5,439) | |||||
Goodwill, ending balance | $ 25,791 | $ 25,791 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jul. 07, 2024 | Apr. 14, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | Jun. 09, 2024 | Oct. 01, 2023 | |
Goodwill [Line Items] | |||||||
Goodwill | $ 161,645 | $ 161,645 | $ 329,986 | ||||
Impairment of goodwill | (162,624) | $ 0 | (162,624) | $ 0 | |||
Del Taco | |||||||
Goodwill [Line Items] | |||||||
Goodwill | $ 25,791 | 25,791 | $ 194,000 | $ 193,959 | |||
Impairment of goodwill | $ (162,600) | $ (162,624) |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jul. 07, 2024 | Oct. 01, 2023 |
Definite-lived intangible assets: | ||
Gross Amount | $ 12,835 | $ 12,668 |
Accumulated Amortization | (1,962) | (1,338) |
Net Amount | 10,873 | 11,330 |
Indefinite-lived intangible assets: | ||
Gross Amount | 283,500 | 283,500 |
Sublease assets | ||
Definite-lived intangible assets: | ||
Gross Amount | 2,671 | 2,671 |
Accumulated Amortization | (564) | (381) |
Net Amount | 2,107 | 2,290 |
Franchise contracts | ||
Definite-lived intangible assets: | ||
Gross Amount | 9,700 | 9,700 |
Accumulated Amortization | (1,264) | (850) |
Net Amount | 8,436 | 8,850 |
Reacquired franchise rights | ||
Definite-lived intangible assets: | ||
Gross Amount | 464 | 297 |
Accumulated Amortization | (134) | (107) |
Net Amount | $ 330 | $ 190 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET - Amortization Expense (Details) $ in Thousands | Jul. 07, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 10,873 |
2025 | 816 |
2026 | 814 |
2027 | 826 |
2028 | 772 |
Finite-Lived Intangible Asset, Expected Amortization, After Year Four | 7,458 |
Remainder of 2024 | $ 187 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jul. 07, 2024 |
Lessee, Lease, Description [Line Items] | |
Initial term of operating lease | 20 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Renewal term of operating lease | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term of operating lease | 20 years |
LEASES - Operating Lease Income
LEASES - Operating Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | ||
Lessor, Lease, Description [Line Items] | |||||
Amortization of sublease assets and liabilities, net | $ (192) | $ (76) | $ (423) | $ (1,437) | |
Operating lease income - closed restaurants and other | [1] | 1,755 | 1,692 | 5,926 | 5,717 |
Franchise contracts | |||||
Lessor, Lease, Description [Line Items] | |||||
Operating lease income - franchise | 59,767 | 56,052 | 197,461 | 185,285 | |
Variable lease income - franchise | 28,618 | 29,857 | 89,339 | 92,836 | |
Amortization of sublease assets and liabilities, net | 740 | 339 | 1,347 | 477 | |
Franchise rental revenues | $ 89,125 | $ 86,248 | $ 288,147 | $ 278,598 | |
[1] Includes closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings. |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jul. 07, 2024 | Oct. 01, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | $ 17,879 | $ 15,051 | |
Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | 17,879 | 15,051 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | 0 | 0 | |
Non Qualified Deferred Compensation Plan | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | [1] | 17,879 | 15,051 |
Non Qualified Deferred Compensation Plan | Quoted Prices In Active Markets For Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | [1] | 17,879 | 15,051 |
Non Qualified Deferred Compensation Plan | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | [1] | 0 | 0 |
Non Qualified Deferred Compensation Plan | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total liabilities at fair value | [1] | $ 0 | $ 0 |
[1] The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets. |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Value and Estimated Fair Value of Notes (Details) - Senior Notes - USD ($) $ in Thousands | Jul. 07, 2024 | Oct. 01, 2023 |
Carrying Amount | Series 2019 Class A-2 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 701,438 | $ 706,875 |
Carrying Amount | Series 2022 Class A-2 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 1,050,500 | 1,067,000 |
Fair Value | Series 2019 Class A-2 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | 670,848 | 640,046 |
Fair Value | Series 2022 Class A-2 Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total debt | $ 953,959 | $ 903,056 |
OTHER OPERATING (INCOME) EXPE_3
OTHER OPERATING (INCOME) EXPENSES, NET - Summary of Impairment, Disposition of Property and Equipment, Restaurant Closing Costs and Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Jul. 07, 2024 USD ($) | Apr. 14, 2024 USD ($) | Jul. 09, 2023 USD ($) | Jul. 07, 2024 USD ($) | Jul. 07, 2024 restaurant | Jul. 07, 2024 restaurants | Jul. 09, 2023 USD ($) | ||||
Property, Plant and Equipment [Line Items] | ||||||||||
Acquisition, integration, and strategic initiatives | [1] | $ 4,723 | $ 2,463 | $ 14,612 | $ 5,359 | |||||
Costs of closed restaurants and other | 160 | [2] | 1,272 | [2] | 1,792 | 4,017 | ||||
Operating restaurant impairment charges | 136 | 4,395 | 136 | 4,395 | ||||||
Accelerated depreciation | 95 | 66 | 485 | 519 | ||||||
Impairment of goodwill | 162,624 | 0 | 162,624 | 0 | ||||||
Gains on acquisition of restaurants | 0 | [3] | 0 | [3] | (2,357) | 0 | ||||
Losses (gains) on disposition of property and equipment, net | [4] | 527 | (540) | 1,675 | (9,155) | |||||
Other operating expenses (income), net | $ 5,641 | $ 7,656 | $ 16,343 | $ 5,135 | ||||||
Del Taco | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Gains on acquisition of restaurants | $ (2,400) | |||||||||
Number of restaurants acquired from franchisees | 9 | 9 | ||||||||
[1] Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees. Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants. |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 07, 2024 | Apr. 14, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | ||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | $ 369,171 | $ 396,942 | $ 1,222,016 | $ 1,319,782 | ||||
Depreciation and amortization | 13,827 | 14,460 | 46,206 | 48,460 | ||||
Acquisition, integration, and strategic initiatives | [1] | 4,723 | 2,463 | 14,612 | 5,359 | |||
Share-based compensation | 2,357 | 2,059 | 11,018 | 7,991 | ||||
Net COLI gains | (3,223) | (579) | (9,289) | (7,147) | ||||
Impairment of goodwill | 162,624 | 0 | 162,624 | 0 | ||||
Losses (gains) on the sale of company-operated restaurants | 65 | (5,794) | 1,384 | (10,323) | ||||
Gains on acquisition of restaurants | 0 | [2] | 0 | [2] | 2,357 | 0 | ||
Amortization of favorable and unfavorable leases and subleases, net | 192 | 76 | 423 | 1,437 | ||||
(Loss) earnings from operations | (102,236) | 63,542 | 31,434 | 226,112 | ||||
Jack in the Box restaurant operations | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 281,749 | 280,211 | 926,351 | 921,960 | ||||
Segment operating profit | 86,573 | 88,067 | 287,295 | 300,950 | ||||
Impairment of goodwill | 0 | |||||||
Del Taco | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenues | 87,422 | 116,731 | 295,665 | 397,822 | ||||
Segment operating profit | 8,884 | 7,970 | 29,295 | 37,476 | ||||
Impairment of goodwill | $ 162,600 | 162,624 | ||||||
Corporate Segment | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Segment operating profit | $ (17,128) | $ (19,810) | $ (60,535) | $ (66,537) | ||||
[1] Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees. |
INCOME TAXES- Narrative (Detail
INCOME TAXES- Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes | $ 83 | $ 14,104 | $ 23,316 | $ 47,657 |
Effective income tax rates | (0.10%) | 32.60% | (66.00%) | 30.40% |
RETIREMENT PLANS - Narrative (D
RETIREMENT PLANS - Narrative (Details) | 9 Months Ended | |
Jul. 07, 2024 healthcarePlan definedBenefitPensionPlan | Jan. 01, 2022 USD ($) | |
Retirement Benefits [Abstract] | ||
Number of sponsored defined benefit pension plans | definedBenefitPensionPlan | 2 | |
Number of postretirement health care plans | healthcarePlan | 2 | |
Minimum required contribution for retirement plans | $ | $ 0 |
RETIREMENT PLANS - Components o
RETIREMENT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | ||||
Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Interest cost | $ 4,380 | $ 4,434 | $ 14,599 | $ 14,782 | |||
Expected return on plan assets | (3,457) | (3,486) | (11,524) | (11,619) | |||
Actuarial losses (gains) | [1] | 701 | 708 | 2,335 | 2,359 | ||
Amortization of unrecognized prior service costs | 3 | [1] | 5 | [1] | 11 | 15 | |
Net periodic benefit cost | 1,627 | 1,661 | 5,421 | 5,537 | |||
Post-Retirement Healthcare Plans | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Interest cost | 164 | 162 | 547 | 539 | |||
Actuarial losses (gains) | [1] | (211) | (215) | (703) | (717) | ||
Net periodic benefit cost | $ (47) | $ (53) | $ (156) | $ (178) | |||
[1] Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.” |
RETIREMENT PLANS - Schedule of
RETIREMENT PLANS - Schedule of Future Cash Flows (Details) $ in Thousands | 9 Months Ended |
Jul. 07, 2024 USD ($) | |
SERP | |
Defined Benefit Plan Disclosure [Line Items] | |
Net year-to-date contributions | $ 3,930 |
Remaining estimated net contributions during fiscal 2024 | 1,208 |
Post-Retirement Healthcare Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Net year-to-date contributions | 854 |
Remaining estimated net contributions during fiscal 2024 | $ 251 |
STOCKHOLDERS EQUITY AND REPUR_2
STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 4 Months Ended | 9 Months Ended | |||||
Jul. 07, 2024 | Apr. 14, 2024 | Jul. 09, 2023 | Apr. 16, 2023 | Jan. 21, 2024 | Jan. 22, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Stockholders' Equity Note [Abstract] | ||||||||
Shares repurchased (in shares) | 800,000 | |||||||
Value of shares repurchased | $ 15,146 | $ 15,133 | $ 26,852 | $ 18,580 | $ 25,166 | $ 14,999 | $ 55,400 | |
Repurchase of common stock, remaining authorized amount | $ 195,000 | $ 195,000 | ||||||
Cash dividend (in USD per share) | $ 0.44 | $ 0.44 | $ 1.32 | $ 1.32 | ||||
Total cash dividends | $ 8,466 | $ 8,515 | $ 8,978 | $ 9,066 | $ 8,652 | $ 9,154 | $ 25,800 |
AVERAGE SHARES OUTSTANDING - Re
AVERAGE SHARES OUTSTANDING - Reconciliation of Basic Weighted-Average Shares Outstanding to Diluted Weighted-Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 07, 2024 | Jul. 09, 2023 | Jul. 07, 2024 | Jul. 09, 2023 | |
Average Shares Outstanding [Line Items] | ||||
Weighted-average shares outstanding - basic (in shares) | 19,454 | 20,487 | 19,690 | 20,738 |
Weighted-average number of shares outstanding - diluted (in shares) | 19,541 | 20,649 | 19,836 | 20,861 |
Excluded from diluted weighted-average shares outstanding: | ||||
Antidilutive (in shares) | 257 | 15 | 22 | 26 |
Performance conditions not satisfied at the end of the period (in shares) | 136 | 105 | 136 | 105 |
Nonvested stock awards and units | ||||
Average Shares Outstanding [Line Items] | ||||
Effect of potentially dilutive securities (in shares) | 74 | 161 | 133 | 122 |
Stock options | ||||
Average Shares Outstanding [Line Items] | ||||
Effect of potentially dilutive securities (in shares) | 0 | 1 | 0 | 1 |
Performance share awards | ||||
Average Shares Outstanding [Line Items] | ||||
Effect of potentially dilutive securities (in shares) | 13 | 0 | 13 | 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | 1 Months Ended | |||||
Feb. 08, 2023 USD ($) | Oct. 24, 2022 USD ($) | Jun. 04, 2022 USD ($) | Apr. 17, 2019 purchaser | Aug. 31, 2010 formerEmployee | Jul. 07, 2024 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Accruals for legal matters | $ 16 | |||||
Lease guarantee | $ 20.9 | |||||
Qdoba guaranteed leases, remaining term | 14 years | |||||
Jack in the Box | ||||||
Loss Contingencies [Line Items] | ||||||
Number of former employees | formerEmployee | 5 | |||||
Damages awarded | $ 6.4 | |||||
Interest Expense, Interest-Bearing Liability | $ 9.1 | |||||
Torrez V. Jack In The Box | Settled Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 50 | |||||
J&D Restaurant Group v. Jack in the Box Inc. | ||||||
Loss Contingencies [Line Items] | ||||||
Damages awarded | $ 8 | |||||
Number of perspective purchasers | purchaser | 2 |
SUPPLEMENTAL CONSOLIDATED CAS_3
SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION - Additional Information Related to Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 07, 2024 | Jul. 09, 2023 | |
Non-cash investing and financing transactions: | ||
Decrease in obligations for purchases of property and equipment | $ 3,825 | $ 2,472 |
Increase in dividends accrued or converted to common stock equivalents | 210 | 212 |
Right-of use assets obtained in exchange for operating lease obligations | 165,200 | 181,874 |
Right-of use assets obtained in exchange for finance lease obligations | $ 0 | $ 870 |
SUPPLEMENTAL CONSOLIDATED BAL_3
SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands | Jul. 07, 2024 | Oct. 01, 2023 | Jul. 09, 2023 | Oct. 02, 2022 |
Accounts and other receivables, net: | ||||
Trade | $ 79,971 | $ 93,660 | ||
Notes receivable, current portion | 2,036 | 2,262 | ||
Income tax receivable | 832 | 949 | ||
Other | 7,762 | 6,953 | ||
Allowance for doubtful accounts | (4,373) | (4,146) | $ (4,101) | $ (5,975) |
Accounts and other receivables, net | 86,228 | 99,678 | ||
Property and equipment, net: | ||||
Property and equipment, at cost | 1,271,679 | 1,258,589 | ||
Less accumulated depreciation and amortization | (851,443) | (846,559) | ||
Property and equipment, net | 420,236 | 412,030 | ||
Other assets, net: | ||||
Company-owned life insurance policies | 124,981 | 113,205 | ||
Deferred rent receivable | 41,161 | 41,947 | ||
Franchise tenant improvement allowance | 42,306 | 43,590 | ||
Notes receivable, less current portion | 10,169 | 11,927 | ||
Other | 35,515 | 30,038 | ||
Other assets, net | 254,132 | 240,707 | ||
Accrued liabilities: | ||||
Legal accruals | 16,045 | 40,877 | ||
Income tax liabilities | 0 | 58,155 | ||
Payroll and related taxes | 36,069 | 49,521 | ||
Insurance | 29,017 | 31,349 | ||
Sales and property taxes | 23,117 | 30,508 | ||
Deferred rent income | 16,812 | 19,397 | ||
Advertising | 9,078 | 15,597 | ||
Deferred franchise and development fees | 6,534 | 5,952 | ||
Other | 42,014 | 50,822 | ||
Accrued liabilities | 178,686 | 302,178 | ||
Other long-term liabilities: | ||||
Defined benefit pension plans | 46,897 | 48,375 | ||
Deferred franchise and development fees | 43,690 | 44,522 | ||
Other | 52,194 | 50,226 | ||
Other long-term liabilities | 142,781 | 143,123 | ||
Land | ||||
Property and equipment, net: | ||||
Property and equipment, at cost | 94,467 | 92,007 | ||
Buildings | ||||
Property and equipment, net: | ||||
Property and equipment, at cost | 962,745 | 968,221 | ||
Restaurant and other equipment | ||||
Property and equipment, net: | ||||
Property and equipment, at cost | 156,497 | 166,714 | ||
Construction in progress | ||||
Property and equipment, net: | ||||
Property and equipment, at cost | $ 57,970 | $ 31,647 |
SUBSEQUENT EVENTS - Narrative (
SUBSEQUENT EVENTS - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 02, 2024 $ / shares | Aug. 06, 2024 USD ($) restaurant | Jul. 07, 2024 $ / shares | Jul. 09, 2023 $ / shares | Jul. 07, 2024 $ / shares | Jul. 09, 2023 $ / shares | |
Subsequent Event [Line Items] | ||||||
Cash dividends declared per common share (in USD per share) | $ 0.44 | $ 0.44 | $ 1.32 | $ 1.32 | ||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Refranchising agreements | restaurant | 27 | |||||
Cash dividends declared per common share (in USD per share) | $ 0.44 | |||||
Proceeds from divestitures | $ | $ 13.1 |