SEGMENT REPORTING

4 Months Ended

Jan. 21, 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):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Revenues by segment:
Jack in the Box restaurant operations	$	368,340	$	366,917
Del Taco restaurant operations	119,158		160,179
Consolidated revenues	$	487,498	$	527,096
Segment profit reconciliation:
Jack in the Box segment profit	$	116,043	$	128,780
Del Taco segment profit	10,741		16,236
Shared services and unallocated costs	(25,203)		(28,506)
Depreciation and amortization	18,473		19,402
Acquisition, integration, and strategic initiatives	5,621		1,651
Share-based compensation	4,820		3,534
Net COLI gains	(4,834)		(5,724)
Losses (gains) on the sale of company-operated restaurants	254		(3,825)
Gains on acquisition of restaurants	(2,357)		—
Amortization of favorable and unfavorable leases and subleases, net	124		541
Earnings from operations	$	79,480	$	100,931

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.