Exhibit 99.2
JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On March 21, 2018, Jack in the Box Inc. (the “Company”) completed the previously announced sale (the “Qdoba Sale”) of Qdoba Restaurant Corporation (“Qdoba”), a wholly owned subsidiary of the Company which operates and franchises more than 700 Qdoba Mexican Eats® fast-casual restaurants, to certain funds managed by affiliates of Apollo Global Management, LLC (the “Buyer”). On March 21, 2018, the Company also amended its credit agreement to extend the terms of its revolving credit facility and the term loan facility, each from a maturity date of March 19, 2019 to March 19, 2020 (the “Amendment”). As required under the Amendment, the Company will repay $260.0 million of the term loan facility upon closing of the Qdoba Sale. The Amendment also increases the Company's leverage ratio from 4.0x to 4.5x, and amends certain covenants contained in the credit agreement.
The following unaudited pro forma condensed consolidated balance sheet as of January 21, 2018 is presented as if the Qdoba Sale and Amendment had each occurred on January 21, 2018. The following unaudited pro forma condensed consolidated statement of earnings for the 16-week period ended January 21, 2018, and unaudited pro forma condensed consolidated statements of earnings for each of the fiscal years ended October 1, 2017, October 2, 2016 and September 27, 2015 are presented as if the Qdoba Sale had occurred on September 29, 2014, the first day of fiscal year 2015.
The unaudited pro forma condensed consolidated financial statements have been derived from historical financial statements prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) and are presented based on information currently available. They are intended for informational purposes only and are not intended to represent the Company’s financial position or results of operations had the Qdoba Sale and Amendment occurred on the dates indicated, or to project the Company’s financial performance for any future period. Beginning in the first quarter of fiscal 2018, Qdoba’s historical financial information was reflected in the Company’s condensed consolidated balance sheets and statements of earnings as discontinued operations.
The unaudited pro forma condensed consolidated financial statements and the accompanying notes should be read in conjunction with the following: (i) the audited consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-K for the year ended October 1, 2017 and (ii) the unaudited condensed consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-Q for the 16-week period ended January 21, 2018.
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JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
As of January 21, 2018
(In thousands, except share and per share data)
Historical (a) | Pro Forma Adjustments | Pro Forma | |||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash | $ | 3,789 | $ | 36,737 | (b) | $ | 40,526 | ||||||
Accounts and other receivables, net | 36,303 | 36,303 | |||||||||||
Inventories | 3,335 | 3,335 | |||||||||||
Prepaid expenses | 16,423 | (4,190 | ) | (c) | 12,233 | ||||||||
Current assets held for sale | 332,308 | (314,314 | ) | (d) | 17,994 | ||||||||
Other current assets | 5,950 | (2,199 | ) | (e) | 3,751 | ||||||||
Total current assets | 398,108 | (283,966 | ) | 114,142 | |||||||||
Property and equipment: | |||||||||||||
Property and equipment, at cost | 1,250,596 | 1,250,596 | |||||||||||
Less accumulated depreciation and amortization | (787,427 | ) | (787,427 | ) | |||||||||
Property and equipment, net | 463,169 | 463,169 | |||||||||||
Other Assets: | |||||||||||||
Intangible assets, net | 1,348 | 1,348 | |||||||||||
Goodwill | 51,050 | 51,050 | |||||||||||
Other assets, net | 243,894 | (539 | ) | (f) | 243,355 | ||||||||
Total other assets | 296,292 | (539 | ) | 295,753 | |||||||||
$ | 1,157,569 | $ | (284,505 | ) | $ | 873,064 | |||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||||
Current liabilities: | |||||||||||||
Current maturities of long-term debt | $ | 68,564 | $ | (27,903 | ) | (g) | $ | 40,661 | |||||
Accounts payable | 27,142 | 27,142 | |||||||||||
Accrued liabilities | 102,866 | 7,778 | (c) | 110,644 | |||||||||
Current liabilities held for sale | 61,521 | (61,521 | ) | (d) | — | ||||||||
Total current liabilities | 260,093 | (81,646 | ) | 178,447 | |||||||||
Long-term liabilities: | |||||||||||||
Long-term debt, net of current maturities | 1,036,642 | (232,097 | ) | (g) | 804,545 | ||||||||
Other long-term liabilities | 235,394 | 235,394 | |||||||||||
Total long-term liabilities | 1,272,036 | (232,097 | ) | 1,039,939 | |||||||||
Stockholders’ deficit: | |||||||||||||
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued | — | — | |||||||||||
Common stock $0.01 par value, 175,000,000 shares authorized, 81,943,562 issued | 819 | 819 | |||||||||||
Capital in excess of par value | 457,772 | 457,772 | |||||||||||
Retained earnings | 1,485,130 | 29,238 | (h) | 1,514,368 | |||||||||
Accumulated other comprehensive loss | (127,842 | ) | (127,842 | ) | |||||||||
Treasury stock, at cost, 52,411,407 shares | (2,190,439 | ) | (2,190,439 | ) | |||||||||
Total stockholders’ deficit | (374,560 | ) | 29,238 | (345,322 | ) | ||||||||
$ | 1,157,569 | $ | (284,505 | ) | $ | 873,064 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
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JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the 16-weeks Ended January 21, 2018 - First Quarter of Fiscal Year 2018
(In thousands, except per share data)
Historical (a) | Pro Forma Adjustments | Pro Forma | |||||||||||
Revenues: | |||||||||||||
Company restaurant sales | $ | 169,637 | $ | — | $ | 169,637 | |||||||
Franchise rental revenues | 77,217 | 77,217 | |||||||||||
Franchise royalties and other | 47,609 | 47,609 | |||||||||||
294,463 | 294,463 | ||||||||||||
Operating costs and expenses, net: | |||||||||||||
Company restaurant costs (excluding depreciation and amortization): | |||||||||||||
Food and packaging | 48,864 | 48,864 | |||||||||||
Payroll and employee benefits | 48,940 | 48,940 | |||||||||||
Occupancy and other | 27,750 | 27,750 | |||||||||||
Total company restaurant costs (excluding depreciation and amortization) | 125,554 | 125,554 | |||||||||||
Franchise occupancy expenses (excluding depreciation and amortization) | 46,521 | 46,521 | |||||||||||
Franchise support and other costs | 2,482 | 2,482 | |||||||||||
Selling, general and administrative expenses | 34,625 | 34,625 | |||||||||||
Depreciation and amortization | 19,157 | 19,157 | |||||||||||
Impairment and other charges, net | 2,257 | 2,257 | |||||||||||
Gains on the sale of company-operated restaurants | (8,940 | ) | (8,940 | ) | |||||||||
221,656 | 221,656 | ||||||||||||
Earnings from operations | 72,807 | 72,807 | |||||||||||
Interest expense, net | 12,780 | 12,780 | |||||||||||
Earnings from continuing operations and before income taxes | 60,027 | 60,027 | |||||||||||
Income taxes | 47,138 | 2,327 | (i) | 49,465 | |||||||||
Earnings from continuing operations | $ | 12,889 | $ | (2,327 | ) | $ | 10,562 | ||||||
Earnings per share from continuing operations: | |||||||||||||
Basic | $ | 0.44 | $ | 0.36 | |||||||||
Diluted | $ | 0.43 | $ | 0.35 | |||||||||
Weighted-average shares outstanding: | |||||||||||||
Basic | 29,551 | 29,551 | |||||||||||
Diluted | 29,853 | 29,853 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
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JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the 52-weeks Ended October 1, 2017 - Fiscal Year 2017
(In thousands, except per share data)
Historical (a) | Pro Forma Adjustments | Pro Forma | |||||||||||
Revenues: | |||||||||||||
Company restaurant sales | $ | 1,152,479 | $ | (436,558 | ) | (j) | $ | 715,921 | |||||
Franchise rental revenues | 231,687 | (109 | ) | (j) | 231,578 | ||||||||
Franchise royalties and other | 169,748 | (19,956 | ) | (j) | 149,792 | ||||||||
1,553,914 | (456,623 | ) | 1,097,291 | ||||||||||
Operating costs and expenses, net: | |||||||||||||
Company restaurant costs (excluding depreciation and amortization): | |||||||||||||
Food and packaging | 346,944 | (140,291 | ) | (j) | 206,653 | ||||||||
Payroll and employee benefits | 333,611 | (122,000 | ) | (j) | 211,611 | ||||||||
Occupancy and other | 219,446 | (95,079 | ) | (j) | 124,367 | ||||||||
Total company restaurant costs (excluding depreciation and amortization) | 900,001 | (357,370 | ) | (j) | 542,631 | ||||||||
Franchise occupancy expenses (excluding depreciation and amortization) | 140,729 | (106 | ) | (j) | 140,623 | ||||||||
Franchise support and other costs | 13,700 | (4,889 | ) | (j) | 8,811 | ||||||||
Selling, general and administrative expenses | 157,348 | (36,749 | ) | (j)(k) | 120,599 | ||||||||
Depreciation and amortization | 88,939 | (21,500 | ) | (j) | 67,439 | ||||||||
Impairment and other charges, net | 25,090 | (11,921 | ) | (j) | 13,169 | ||||||||
Gains on the sale of company-operated restaurants | (38,034 | ) | — | (38,034 | ) | ||||||||
1,287,773 | (432,535 | ) | 855,238 | ||||||||||
Earnings from operations | 266,141 | (24,088 | ) | 242,053 | |||||||||
Interest expense, net | 46,518 | (8,370 | ) | (j)(l) | 38,148 | ||||||||
Earnings from continuing operations and before income taxes | 219,623 | (15,718 | ) | 203,905 | |||||||||
Income taxes | 81,315 | (5,983 | ) | (m) | 75,332 | ||||||||
Earnings from continuing operations | $ | 138,308 | $ | (9,735 | ) | $ | 128,573 | ||||||
Earnings per share from continuing operations: | |||||||||||||
Basic | $ | 4.52 | $ | 4.20 | |||||||||
Diluted | $ | 4.47 | $ | 4.16 | |||||||||
Weighted-average shares outstanding: | |||||||||||||
Basic | 30,630 | 30,630 | |||||||||||
Diluted | 30,914 | 30,914 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
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JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the 53-weeks Ended October 2, 2016 - Fiscal Year 2016
(In thousands, except per share data)
Historical (a) | Pro Forma Adjustments | Pro Forma | |||||||||||
Revenues: | |||||||||||||
Company restaurant sales | $ | 1,204,535 | $ | (415,495 | ) | (j) | $ | 789,040 | |||||
Franchise rental revenues | 232,907 | (113 | ) | (j) | 232,794 | ||||||||
Franchise royalties and other | 161,889 | (21,465 | ) | (j) | 140,424 | ||||||||
1,599,331 | (437,073 | ) | 1,162,258 | ||||||||||
Operating costs and expenses, net: | |||||||||||||
Company restaurant costs (excluding depreciation and amortization): | |||||||||||||
Food and packaging | 363,002 | (127,464 | ) | (j) | 235,538 | ||||||||
Payroll and employee benefits | 334,470 | (111,451 | ) | (j) | 223,019 | ||||||||
Occupancy and other | 212,844 | (83,081 | ) | (j) | 129,763 | ||||||||
Total company restaurant costs (excluding depreciation and amortization) | 910,316 | (321,996 | ) | (j) | 588,320 | ||||||||
Franchise occupancy expenses (excluding depreciation and amortization) | 137,808 | (102 | ) | (j) | 137,706 | ||||||||
Franchise support and other costs | 15,485 | (4,378 | ) | (j) | 11,107 | ||||||||
Selling, general and administrative expenses | 195,150 | (43,003 | ) | (j)(k) | 152,147 | ||||||||
Depreciation and amortization | 92,844 | (20,058 | ) | (j) | 72,786 | ||||||||
Impairment and other charges, net | 19,043 | (9,114 | ) | (j) | 9,929 | ||||||||
Gains on the sale of company-operated restaurants | (1,230 | ) | — | (1,230 | ) | ||||||||
1,369,416 | (398,651 | ) | 970,765 | ||||||||||
Earnings from operations | 229,915 | (38,422 | ) | 191,493 | |||||||||
Interest expense, net | 31,081 | (6,801 | ) | (j)(l) | 24,280 | ||||||||
Earnings from continuing operations and before income taxes | 198,834 | (31,621 | ) | 167,213 | |||||||||
Income taxes | 72,564 | (11,824 | ) | (m) | 60,740 | ||||||||
Earnings from continuing operations | $ | 126,270 | $ | (19,797 | ) | $ | 106,473 | ||||||
Earnings per share from continuing operations: | |||||||||||||
Basic | $ | 3.74 | $ | 3.16 | |||||||||
Diluted | $ | 3.70 | $ | 3.12 | |||||||||
Weighted-average shares outstanding: | |||||||||||||
Basic | 33,735 | 33,735 | |||||||||||
Diluted | 34,146 | 34,146 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
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JACK IN THE BOX INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
For the 52-weeks Ended September 27, 2015 - Fiscal Year 2015
(In thousands, except per share data)
Historical (a) | Pro Forma Adjustments | Pro Forma | |||||||||||
Revenues: | |||||||||||||
Company restaurant sales | $ | 1,156,863 | $ | (374,338 | ) | (j) | $ | 782,525 | |||||
Franchise rental revenues | 226,702 | (208 | ) | (j) | 226,494 | ||||||||
Franchise royalties and other | 156,752 | (20,595 | ) | (j) | 136,157 | ||||||||
1,540,317 | (395,141 | ) | 1,145,176 | ||||||||||
Operating costs and expenses, net: | |||||||||||||
Company restaurant costs (excluding depreciation and amortization): | |||||||||||||
Food and packaging | 361,988 | (114,057 | ) | (j) | 247,931 | ||||||||
Payroll and employee benefits | 313,302 | (97,704 | ) | (j) | 215,598 | ||||||||
Occupancy and other | 199,658 | (72,930 | ) | (j) | 126,728 | ||||||||
Total company restaurant costs (excluding depreciation and amortization) | 874,948 | (284,691 | ) | (j) | 590,257 | ||||||||
Franchise occupancy expenses (excluding depreciation and amortization) | 136,974 | (192 | ) | (j) | 136,782 | ||||||||
Franchise support and other costs | 15,197 | (3,471 | ) | (j) | 11,726 | ||||||||
Selling, general and administrative expenses | 211,651 | (42,702 | ) | (j)(k) | 168,949 | ||||||||
Depreciation and amortization | 89,468 | (17,775 | ) | (j) | 71,693 | ||||||||
Impairment and other charges, net | 11,767 | (996 | ) | (j) | 10,771 | ||||||||
Losses on the sale of company-operated restaurants | 3,139 | — | 3,139 | ||||||||||
1,343,144 | (349,827 | ) | 993,317 | ||||||||||
Earnings from operations | 197,173 | (45,314 | ) | 151,859 | |||||||||
Interest expense, net | 18,803 | (5,694 | ) | (j)(l) | 13,109 | ||||||||
Earnings from continuing operations and before income taxes | 178,370 | (39,620 | ) | 138,750 | |||||||||
Income taxes | 65,769 | (15,020 | ) | (m) | 50,749 | ||||||||
Earnings from continuing operations | $ | 112,601 | $ | (24,600 | ) | $ | 88,001 | ||||||
Earnings per share from continuing operations: | |||||||||||||
Basic | $ | 3.00 | $ | 2.34 | |||||||||
Diluted | $ | 2.95 | $ | 2.30 | |||||||||
Weighted-average shares outstanding: | |||||||||||||
Basic | 37,587 | 37,587 | |||||||||||
Diluted | 38,215 | 38,215 |
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
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JACK IN THE BOX INC. AND SUBSIDIARIES
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following adjustments have been reflected in the unaudited pro forma condensed consolidated financial statements:
(a) Reflects the Company's historical US GAAP consolidated financial statements, as reported, before pro forma adjustments related to the Qdoba Sale or the Amendment. As of and for the 16-weeks ended January 21, 2018, Qdoba was reported as discontinued operations in the Company's Form 10-Q. For each of the fiscal years ended October 1, 2017, October 2, 2016 and September 27, 2015, Qdoba results of operations were included in the consolidated results of operations in the Company's respective Form 10-K.
In fiscal 2018, the Company began presenting depreciation and amortization as a separate line item on the condensed consolidated statements of earnings to better align with similar presentations made by many of its peers and to provide additional disclosure that is meaningful to its investors. The historical condensed consolidated statements of earnings were adjusted to conform to this new presentation. Depreciation and amortization were previously presented within company restaurant costs, franchise occupancy expenses, selling, general and administrative expenses, and impairment and other charges, net on the consolidated statements of earnings.
(b) Reflects estimated net cash proceeds from the Qdoba Sale of $294.5 million, representing the gross sales price of $305.0 million less certain estimated purchase price adjustments and estimated transaction costs, plus the transaction costs incurred and capitalized as of January 21, 2018 as discussed in note (e). The net cash proceeds ultimately recognized may change based on adjustments to transaction costs and the working capital adjustment as defined in the stock purchase agreement dated December 19, 2017. The pro forma adjustment to cash was also impacted by the mandatory repayment of debt outstanding under the term loan as discussed in note (g).
The pro forma adjustment to cash was calculated as follows (in thousands):
Estimated proceeds, net of transaction costs | $ | 294,538 | ||
Transaction costs capitalized, see note (e) | 2,199 | |||
Payment on term loan, see note (g) | (260,000 | ) | ||
$ | 36,737 |
(c) Represents adjustments for the estimated taxes payable on the gain associated with the Qdoba Sale. Taxes on the gain were calculated using a blended statutory tax rate of 28.67% as shown in note (h). Taxes payable on the gain were included in the pro forma adjustment for accrued liabilities and were reduced by the Company's prepaid income taxes as of January 21, 2018, which resulted in a pro forma adjustment to prepaid expenses.
(d) Represents the net assets sold and liabilities conveyed to the Buyer in the Qdoba Sale.
(e) Represents transaction costs that were incurred as of the January 21, 2018 balance sheet to be applied against the gain on sale of Qdoba when it closes.
(f) Represents the reduction of deferred tax benefit on the excess of the tax basis over the financial reporting basis in the Company's investment in Qdoba.
(g) Represents the mandatory repayment of $260.0 million of the Company's term loan upon closing of the Qdoba Sale in accordance with the Amendment. The repayment was applied to current and long-term debt based on a pro-rata allocation of the remaining scheduled debt payments under the Amendment.
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(h) Represents the estimated after-tax gain on the sale of Qdoba of $29.8 million, and the realization of the Qdoba deferred tax benefit as discussed in note (f), which was calculated as follows (in thousands):
Estimated proceeds, net of transaction costs, see note (b) | $ | 294,538 | ||
Qdoba assets held for sale, see note (d) | (314,314 | ) | ||
Qdoba liabilities held for sale, see note (d) | 61,521 | |||
Pre-tax gain on sale of Qdoba | 41,745 | |||
Taxes on the sale of Qdoba at blended statutory rate of 28.67% | (11,968 | ) | ||
After-tax gain on sale of Qdoba | 29,777 | |||
Deferred tax benefit, see note (f) | (539 | ) | ||
$ | 29,238 |
The after-tax gain on sale of Qdoba ultimately recognized may change based on adjustments to transaction costs and the working capital adjustment as defined in the stock purchase agreement dated December 19, 2017.
(i) Represents a Qdoba tax benefit that was recognized as a component of income taxes from continuing operations. This tax benefit resulted from the re-measurement of Qdoba's deferred tax liabilities due to the enactment of the Tax Cuts and Jobs Act on December 22, 2017.
(j) Reflects the elimination of revenues and expenses representing the historical operating results of Qdoba.
(k) In addition to the adjustment discussed in note (j), the pro forma adjustment to selling, general and administrative expenses in fiscal years 2017, 2016 and 2015 was impacted by an elimination of share-based compensation expenses, employee relocation expenses and gains/losses from the Company's executive deferred compensation plan totaling $1.4 million, $0.7 million and $0.3 million, respectively. These expenses were eliminated as they were corporate costs directly in support of Qdoba operations. All other corporate costs remain classified in the results of continuing operations.
(l) In addition to the adjustment discussed in note (j), the pro forma adjustment to interest expense, net in fiscal years 2017, 2016 and 2015 was impacted by the allocation of additional interest expense of $4.5 million, $4.1 million, and $3.7 million, respectively, to Qdoba based on the mandatory term loan repayment upon closing of the Qdoba Sale, as discussed in note (g).
(m) The pro forma adjustment for income taxes in fiscal years 2017, 2016 and 2015 represents Qdoba’s historical income tax expense net of the tax effect of the pro forma adjustments discussed in notes (k) and (l) of $5.9 million, $4.8 million, and $4.0 million, respectively.
Transition Services Agreement and Employee Agreement
Pursuant to a transition services agreement entered into and effective on the closing of the Qdoba Sale, the Company will supply certain services to Qdoba, including information technology, finance and accounting, human resources, supply chain and other corporate support services (the “Services”). The Services will be provided at cost for a period of up to 12 months, with two 3-month extensions available for certain services. No pro forma adjustments have been made related to these Services as the Company is unable to currently estimate the duration that each of the Services will be provided.
Further, pursuant to an employee agreement entered into and effective on the closing date of the Qdoba Sale, the Company will continue to employ all Qdoba employees who will transfer employment to the Buyer (the “Qdoba Employees”) through the earlier of: (a) following 30 days written notice from the Buyer of termination of the employee agreement, or (b) nine months following the closing of the Qdoba Sale. Upon termination of the employee agreement, the Qdoba Employees will become employees of the Buyer. During the term of the employee agreement, the Company (as the employer of record) will pay all wages and benefits of the Qdoba Employees and will receive reimbursement of these costs from the Buyer, who has all control over the employees. As the costs of the employee agreement will be passed through to the Buyer, no pro forma adjustments have been made related to the employment agreement.
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Additional Financial Information
The following is a summary of the unaudited quarterly pro forma results of operations for fiscal year 2017 (in thousands, except per share data):
16-weeks Ended | 12-weeks Ended | |||||||||||||||
January 22, 2017 | April 16, 2017 | July 9, 2017 | October 1, 2017 | |||||||||||||
Company restaurant sales | $ | 238,571 | $ | 180,275 | $ | 157,772 | $ | 139,303 | ||||||||
Franchise revenues | 114,610 | 85,609 | 88,329 | 92,822 | ||||||||||||
Company restaurant costs (excluding depreciation and amortization) | (177,113 | ) | (137,275 | ) | (121,094 | ) | (107,149 | ) | ||||||||
Franchise costs (excluding depreciation and amortization) | (44,727 | ) | (33,276 | ) | (34,500 | ) | (36,931 | ) | ||||||||
Selling, general and administrative expenses | (40,772 | ) | (25,862 | ) | (28,110 | ) | (25,855 | ) | ||||||||
Depreciation and amortization | (21,263 | ) | (16,123 | ) | (15,336 | ) | (14,717 | ) | ||||||||
Impairment and other charges, net | (2,654 | ) | (1,367 | ) | (4,873 | ) | (4,275 | ) | ||||||||
Gains on the sale of company-operated restaurants | 137 | 7,779 | 13,250 | 16,868 | ||||||||||||
Interest expense, net | (10,409 | ) | (9,037 | ) | (9,382 | ) | (9,320 | ) | ||||||||
Earnings from continuing operations and before income taxes | 56,380 | 50,723 | 46,056 | 50,746 | ||||||||||||
Income taxes | (21,831 | ) | (19,333 | ) | (14,764 | ) | (19,404 | ) | ||||||||
Earnings from continuing operations | $ | 34,549 | $ | 31,390 | $ | 31,292 | $ | 31,342 | ||||||||
Earnings per share from continuing operations: | ||||||||||||||||
Basic | $ | 1.07 | $ | 1.02 | $ | 1.06 | $ | 1.06 | ||||||||
Diluted | $ | 1.06 | $ | 1.01 | $ | 1.05 | $ | 1.05 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 32,168 | 30,895 | 29,474 | 29,478 | ||||||||||||
Diluted | 32,442 | 31,126 | 29,718 | 29,753 |
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