Summary of Refranchisings and Franchise Acquisitions (Tables)

12 Months Ended

Oct. 01, 2023

Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract]

Summary Of Refranchisings And Franchise Acquisitions

Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):

	2023		2022		2021
Restaurants sold to Jack in the Box franchisees	5		15		—
Restaurants sold to Del Taco franchisees	111		—		—
Proceeds from the sale of company-operated restaurants (1)	$	85,221	$	6,391	$	1,827
Broker commissions	(1,614)		—		—
Net assets sold (primarily property and equipment)	(17,101)		(1,565)		—
Goodwill related to the sale of company-operated restaurants	(35,544)		(948)		—
Franchise fees	(3,086)		—		—
Sublease liabilities, net	(8,559)		—		—
Lease termination	(393)		—		—
Other (2)	(926)		—		2,376
Gains on the sale of company-operated restaurants	$	17,998	$	3,878	$	4,203

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(1)Amounts in 2023, 2022, and 2021 include additional proceeds of $0.9 million, $1.4 million, and $1.8 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years.

(2)Amount in 2023 is primarily related to charges for a restaurant that was closed due to refranchising the related market. Amount in 2021 relate to adjustments to contingencies that were included in underlying franchise and lease agreements from the sale of restaurants in prior years.

Schedule of Franchise Acquisitions

The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data):

	Amount
Del Taco shares outstanding as of March 8, 2022	36,442
Del Taco RSAs subject to accelerated vesting	805
Del Taco RSUs subject to accelerated vesting	70
Del Taco options subject to accelerated vesting	292
Total Del Taco shares outstanding	37,610
Merger Consideration (per Del Taco share)	$	12.51
Total cash consideration paid to selling shareholders	$	470,500
Del Taco transaction costs paid by Jack in the Box (1)	7,141
Del Taco closing indebtedness settled by Jack in the Box (2)	115,219
Replacement share-based payment awards pre-combination vesting expense	449
Total aggregate purchase consideration	$	593,309

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(1)Represents the portion of Del Taco merger-related transaction costs that were paid at the Closing Date by the Company.

(2)Represents the closing indebtedness of Del Taco’s existing debt that was paid at the Closing Date by the Company.

The final allocation of the purchase consideration was as follows (in thousands):

Total aggregate purchase consideration, net of $12,068 cash acquired	$	581,241
Assets:
Accounts and other receivables	4,583
Inventories	3,233
Prepaid expenses	2,950
Other current assets	105
Property and equipment	145,032
Operating lease right-of-use assets	350,289
Intangible assets	12,371
Trademarks	283,500
Other assets	5,128
Liabilities:
Current maturities of long-term debt	22
Current operating lease liabilities	21,991
Accounts payable	18,808
Accrued liabilities	112,579
Long-term debt, net of current maturities	349
Long-term operating lease liabilities, net of current portion	303,488
Deferred tax liabilities	75,355
Other long-term liabilities	13,080
Net assets acquired, excluding goodwill	$	261,519
Goodwill	$	319,722

The following table provides detail of the combined acquisitions in 2022, and 2021 (dollars in thousands):

	2022		2021
Restaurants acquired from Jack in the Box franchisees	13		20
Inventory	$	—	$	258
Property and equipment	540		1,136
Intangible assets	66		245
Other assets	—		10
Goodwill	—		613
Gains on the acquisition of franchise-operated restaurants	(309)		(340)
Liabilities assumed	—		(277)
Total consideration	$	297	$	1,645

Disclosure of Assets Held-for-sale

Assets held for sale — Assets classified as held for sale consisted of the following at each fiscal year-end (in thousands):

	2023		2022
Jack in the Box restaurant properties (1)	$	11,097	$	14,151
Other property and equipment (2)	766		2,868
Del Taco restaurants to be refranchised:
Property and equipment	771		—
Goodwill	1,291		—
Assets held for sale	$	13,925	$	17,019

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(1)Consists of properties that are currently leased to franchisees which we intend to sell the underlying real estate directly to the franchisee and/or sell and leaseback with a third party within the next twelve months.

(2)Consists primarily of owned properties of closed restaurants which we are actively marketing for sale.