UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF
1934
Date
of Report (Date of earliest event reported):
February 17, 2015
JACK IN THE BOX INC. |
||
(Exact name of registrant as specified in its charter) |
DELAWARE |
1-9390 |
95-2698708 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
9330 BALBOA AVENUE, SAN DIEGO, CA |
92123 |
(Address of principal executive offices) |
(Zip Code) |
(858)
571-2121
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K is intended to simultaneously
satisfy the filing obligation of the registrant under any of the
following provisions (see
General Instruction A.2. below):
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On February 17, 2015, Jack in the Box Inc. issued a press release announcing its first quarter fiscal 2015 operating results and disclosing other information.
A copy of the press release is attached as Exhibit 99.1.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
Exhibit
No. Description
----------- ---------------
99.1 Press
Release of Jack in the Box Inc. dated February 17, 2015
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
JACK IN THE BOX INC. |
|
By: |
/s/ JERRY P. REBEL |
|
Jerry P. Rebel |
||
Executive Vice President |
||
Chief Financial Officer |
||
(Principal Financial Officer) |
||
(Duly Authorized Signatory) |
||
Date: February 17, 2015 |
Exhibit 99.1
Jack in the Box Inc. Reports First Quarter FY 2015 Earnings; Updates Guidance for FY 2015
SAN DIEGO--(BUSINESS WIRE)--February 17, 2015--Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $37.1 million, or $0.94 per diluted share, for the first quarter ended January 18, 2015, compared with earnings from continuing operations of $33.0 million, or $0.75 per diluted share, for the first quarter of fiscal 2014.
Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, were $0.93 in the first quarter of fiscal 2015 compared with $0.75 in the prior year quarter.
A reconciliation of non-GAAP measurements to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.
16 Weeks Ended | ||||||||||
January 18, | January 19, | |||||||||
2015 | 2014 | |||||||||
Diluted earnings per share from continuing operations – GAAP |
$0.94 |
$0.75 |
||||||||
(Gains) from refranchising | (0.01) | (0.01) | ||||||||
Operating earnings per share – non-GAAP | $0.93 | $0.75 |
Lenny Comma, chairman and chief executive officer, said, “We had a great first quarter, with a 24 percent increase in operating earnings per share resulting from better than expected same-store sales growth at both Jack in the Box® and Qdoba Mexican Grill®, margin expansion and a 10 percent reduction in our diluted share count as we continued to use our growing free cash flow to return cash to shareholders.”
Increase in same-store sales:
16 Weeks Ended | 16 Weeks Ended | |||||||||
January 18, 2015 | January 19, 2014 | |||||||||
Jack in the Box: | ||||||||||
Company | 3.9% | 2.1% | ||||||||
Franchise | 4.6% | 1.8% | ||||||||
System | 4.4% | 1.9% | ||||||||
Qdoba: | ||||||||||
Company | 12.9% | 2.0% | ||||||||
Franchise | 15.1% | 2.6% | ||||||||
System | 14.0% | 2.3% |
“Jack in the Box company same-store sales increased 3.9 percent for the quarter, as we experienced a significant acceleration in trends in the last half of the quarter. Transactions were positive, and sales increased across all dayparts, with breakfast and late night remaining the strongest,” Comma said.
Jack in the Box system same-store sales growth for the quarter of 4.4 percent exceeded that of the QSR sandwich segment by 3.4 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 16-week time period ended January 18, 2015. Included in this segment are 16 of the top QSR sandwich and burger chains in the country.
“Qdoba same-store sales in the first quarter increased 12.9 percent for company restaurants and 14.0 percent system-wide, as the implementation of our new simplified menu pricing structure was well received by our guests. In addition, company same-store sales reflected positive traffic, less discounting and double-digit growth in catering sales,” Comma concluded.
Consolidated restaurant operating margin increased by 100 basis points to 19.3 percent of sales in the first quarter of 2015, compared with 18.3 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box restaurants increased 30 basis points to 19.4 percent of sales. The improvement was due primarily to sales leverage and the benefit of refranchising, which were partially offset by commodity inflation of approximately 3.9 percent and the impact of the increase in the California minimum wage in July 2014. Restaurant operating margin for Qdoba restaurants increased 290 basis points to 19.3 percent of sales, due primarily to sales leverage, including the benefit of the new menu pricing structure, which was partially offset by commodity inflation of approximately 6.2 percent.
SG&A expense for the first quarter increased by $3.9 million and was 13.5 percent of revenues as compared to 13.1 percent in the prior year quarter. The increase reflects a $1.5 million increase in pension expense resulting from lower discount rates. Advertising costs were also $1.0 million higher at Qdoba due to changes in the timing of advertising activities. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans negatively impacted SG&A by $0.2 million in the first quarter of 2015, compared to a positive impact of $1.4 million in the first quarter of 2014, resulting in a year-over-year increase in SG&A of $1.6 million.
Gains from refranchising were $0.9 million in the first quarter of 2015, or approximately $0.01 per diluted share, compared with $0.5 million, or approximately $0.01 per diluted share, in the prior year quarter. Amounts in both years represent additional proceeds received as a result of the extension of underlying franchise and lease agreements for previously refranchised Jack in the Box restaurants, and the sale of one restaurant in the first quarter of 2015.
The tax rate for the first quarter of 2015 was 36.1 percent versus 37.3 percent for the first quarter of 2014. The lower tax rate in the first quarter of fiscal 2015 was due primarily to legislation that retroactively reinstated Work Opportunity Tax Credits for calendar year 2014.
In the third quarter of 2013, following the completion of the company’s previously disclosed review of market performance for its Qdoba brand, 62 company-operated Qdoba restaurants were closed, and the results of operations, impairment charges, lease obligations and other exit costs for these restaurants are included in discontinued operations in the accompanying consolidated statements of earnings for all periods presented. Discontinued operations for the first quarter of fiscal 2015 include after-tax charges related to the Qdoba restaurant closures of approximately $0.03 per diluted share, as compared to $0.01 for the first quarter of fiscal 2014.
Capital Allocation
The company repurchased approximately 1,307,000 shares of its common stock in the first quarter of 2015 at an average price of $77.70 per share for an aggregate cost of $101.6 million. This leaves $115.5 million remaining under two stock-buyback programs authorized by the company’s Board of Directors, of which $15.5 million expires in November 2015 and $100 million expires in November 2016.
The company also announced today that on February 12, 2015, its Board of Directors declared a quarterly cash dividend of $0.20 per share on the company’s common stock. The dividend is payable on March 19, 2015, to shareholders of record at the close of business on March 6, 2015.
Guidance
The following guidance and underlying assumptions reflect the company’s current expectations for the second quarter ending April 12, 2015, and the fiscal year ending September 27, 2015. Fiscal 2015 is a 52-week year, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.
Second quarter fiscal year 2015 guidance
Fiscal year 2015 guidance
Conference call
The company will host a conference call for financial analysts and investors on Wednesday, February 18, 2015, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box Inc. corporate website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on February 18.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 600 restaurants in 47 states, the District of Columbia and Canada. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.
Safe harbor statement
This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the following: the success of new products and marketing initiatives; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, and risks relating to expansion into new markets; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.
JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)
Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.
16 Weeks Ended | ||||||||||
January 18, | January 19, | |||||||||
2015 | 2014 | |||||||||
Diluted earnings per share from continuing operations – GAAP |
$0.94 |
$0.75 |
||||||||
(Gains) from refranchising | (0.01) | (0.01) | ||||||||
Operating earnings per share – non-GAAP | $0.93 | $0.75 |
JACK IN THE BOX INC. AND SUBSIDIARIES | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
(Unaudited) | ||||||||||||||
Sixteen Weeks Ended |
||||||||||||||
January 18, | January 19, | |||||||||||||
2015 | 2014 | |||||||||||||
Revenues: | ||||||||||||||
Company restaurant sales | $ | 351,896 | $ | 338,828 | ||||||||||
Franchise revenues | 116,725 | 111,253 | ||||||||||||
468,621 | 450,081 | |||||||||||||
Operating costs and expenses, net: | ||||||||||||||
Company restaurant costs: |
||||||||||||||
Food and packaging | 113,109 | 108,238 | ||||||||||||
Payroll and employee benefits | 95,679 | 93,816 | ||||||||||||
Occupancy and other | 75,031 | 74,709 | ||||||||||||
Total company restaurant costs |
283,819 | 276,763 | ||||||||||||
Franchise costs | 57,141 | 55,510 | ||||||||||||
Selling, general and administrative expenses | 63,095 | 59,156 | ||||||||||||
Impairment and other charges, net | 2,180 | 1,909 | ||||||||||||
Gains on the sale of company-operated restaurants | (850 | ) | (461 | ) | ||||||||||
405,385 | 392,877 | |||||||||||||
Earnings from operations | 63,236 | 57,204 | ||||||||||||
Interest expense, net | 5,213 | 4,542 | ||||||||||||
Earnings from continuing operations and before income taxes | 58,023 | 52,662 | ||||||||||||
Income taxes | 20,925 | 19,652 | ||||||||||||
Earnings from continuing operations | 37,098 | 33,010 | ||||||||||||
Losses from discontinued operations, net of income tax benefit | (1,263 | ) | (724 | ) | ||||||||||
Net earnings | $ | 35,835 | $ | 32,286 | ||||||||||
Net earnings per share - basic: | ||||||||||||||
Earnings from continuing operations | $ | 0.96 | $ | 0.78 | ||||||||||
Losses from discontinued operations | (0.03 | ) | (0.02 | ) | ||||||||||
Net earnings per share (1) | $ | 0.93 | $ | 0.76 | ||||||||||
Net earnings per share - diluted: | ||||||||||||||
Earnings from continuing operations | $ | 0.94 | $ | 0.75 | ||||||||||
Losses from discontinued operations | (0.03 | ) | (0.02 | ) | ||||||||||
Net earnings per share (1) | $ | 0.91 | $ | 0.74 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||
Basic | 38,640 | 42,434 | ||||||||||||
Diluted | 39,384 | 43,838 | ||||||||||||
Cash dividends declared per common share | $ | 0.20 | $ | — | ||||||||||
(1) Earnings per share may not add due to rounding. | ||||||||||||||
JACK IN THE BOX INC. AND SUBSIDIARIES |
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||||
(Dollars in thousands, except share data) |
||||||||||||
(Unaudited) |
||||||||||||
January 18, | September 28, | |||||||||||
2015 | 2014 | |||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 8,808 | $ | 10,578 | ||||||||
Accounts and other receivables, net | 43,874 | 50,014 | ||||||||||
Inventories | 7,602 | 7,481 | ||||||||||
Prepaid expenses | 37,866 | 36,314 | ||||||||||
Deferred income taxes | 36,810 | 36,810 | ||||||||||
Assets held for sale | 5,025 | 4,766 | ||||||||||
Other current assets | 961 | 597 | ||||||||||
Total current assets | 140,946 | 146,560 | ||||||||||
Property and equipment, at cost | 1,511,711 | 1,519,947 | ||||||||||
Less accumulated depreciation and amortization | (806,866 | ) | (797,818 | ) | ||||||||
Property and equipment, net | 704,845 | 722,129 | ||||||||||
Intangible assets, net | 15,340 | 15,604 | ||||||||||
Goodwill | 149,058 | 149,074 | ||||||||||
Other assets, net | 231,440 | 237,298 | ||||||||||
$ | 1,241,629 | $ | 1,270,665 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Current maturities of long-term debt | $ | 10,886 | $ | 10,871 | ||||||||
Accounts payable | 18,886 | 31,810 | ||||||||||
Accrued liabilities | 147,373 | 163,626 | ||||||||||
Total current liabilities | 177,145 | 206,307 | ||||||||||
Long-term debt, net of current maturities | 547,718 | 497,012 | ||||||||||
Other long-term liabilities | 304,576 | 309,435 | ||||||||||
Stockholders’ equity: | ||||||||||||
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued | — | — | ||||||||||
Common stock $0.01 par value, 175,000,000 shares authorized, 80,919,351 and 80,127,387 issued, respectively | 809 | 801 | ||||||||||
Capital in excess of par value | 386,452 | 356,727 | ||||||||||
Retained earnings | 1,272,908 | 1,244,897 | ||||||||||
Accumulated other comprehensive loss | (92,040 | ) | (90,132 | ) | ||||||||
Treasury stock, at cost, 42,878,788 and 41,571,752 shares, respectively | (1,355,939 | ) | (1,254,382 | ) | ||||||||
Total stockholders’ equity | 212,190 | 257,911 | ||||||||||
$ | 1,241,629 | $ | 1,270,665 | |||||||||
JACK IN THE BOX INC. AND SUBSIDIARIES | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Dollars in thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Sixteen Weeks Ended | |||||||||||||
January 18, | January 19, | ||||||||||||
2015 | 2014 | ||||||||||||
Cash flows from operating activities: | |||||||||||||
Net earnings | $ | 35,835 | $ | 32,286 | |||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | 27,370 | 28,454 | |||||||||||
Deferred finance cost amortization | 661 | 675 | |||||||||||
Excess tax benefits from stock-based compensation arrangements | (14,533 | ) | (5,307 | ) | |||||||||
Deferred income taxes | 973 | (4,846 | ) | ||||||||||
Share-based compensation expense | 3,885 | 3,801 | |||||||||||
Pension and postretirement expense | 5,769 | 4,233 | |||||||||||
Gains on cash surrender value of company-owned life insurance | (574 | ) | (3,117 | ) | |||||||||
Gains on the sale of company-operated restaurants | (850 | ) | (461 | ) | |||||||||
Losses on the disposition of property and equipment | 1,243 | 992 | |||||||||||
Impairment charges and other | 215 | 393 | |||||||||||
Changes in assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||
Accounts and other receivables | 3,999 | 1,582 | |||||||||||
Inventories | (121 | ) | (682 | ) | |||||||||
Prepaid expenses and other current assets | 16,683 | 622 | |||||||||||
Accounts payable | (4,623 | ) | (5,636 | ) | |||||||||
Accrued liabilities | (20,063 | ) | (16,781 | ) | |||||||||
Pension and postretirement contributions | (6,880 | ) | (6,558 | ) | |||||||||
Other | (1,642 | ) | (5,998 | ) | |||||||||
Cash flows provided by operating activities | 47,347 | 23,652 | |||||||||||
Cash flows from investing activities: | |||||||||||||
Purchases of property and equipment | (19,885 | ) | (21,310 | ) | |||||||||
Proceeds from the sale of assets | — | 2,105 | |||||||||||
Proceeds from the sale of company-operated restaurants | 1,174 | 468 | |||||||||||
Collections on notes receivable | 5,050 | 894 | |||||||||||
Acquisitions of franchise-operated restaurants | — | (1,750 | ) | ||||||||||
Other | 22 | 36 | |||||||||||
Cash flows used in investing activities | (13,639 | ) | (19,557 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||
Borrowings on revolving credit facilities | 154,000 | 163,000 | |||||||||||
Repayments of borrowings on revolving credit facilities | (98,000 | ) | (103,000 | ) | |||||||||
Principal repayments on debt | (5,279 | ) | (10,330 | ) | |||||||||
Dividends paid on common stock | (7,791 | ) | — | ||||||||||
Proceeds from issuance of common stock | 11,302 | 17,650 | |||||||||||
Repurchases of common stock | (104,669 | ) | (84,318 | ) | |||||||||
Excess tax benefits from share-based compensation arrangements | 14,533 | 5,307 | |||||||||||
Change in book overdraft | 423 | 7,880 | |||||||||||
Cash flows used in financing activities | (35,481 | ) | (3,811 | ) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 3 | 5 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (1,770 | ) | 289 | ||||||||||
Cash and cash equivalents at beginning of period | 10,578 | 9,644 | |||||||||||
Cash and cash equivalents at end of period | $ | 8,808 | $ | 9,933 | |||||||||
JACK IN THE BOX INC. AND SUBSIDIARIES | |||||||||||
SUPPLEMENTAL INFORMATION | |||||||||||
(Unaudited) | |||||||||||
The following table presents certain income and expense items included in our condensed consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding. | |||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS DATA | |||||||||||
Sixteen Weeks Ended | |||||||||||
January 18, | January 19, | ||||||||||
2015 | 2014 | ||||||||||
Revenues: | |||||||||||
Company restaurant sales | 75.1 | % | 75.3 | % | |||||||
Franchise revenues | 24.9 | % | 24.7 | % | |||||||
Total revenues | 100.0 | % | 100.0 | % | |||||||
Operating costs and expenses, net: | |||||||||||
Company restaurant costs: | |||||||||||
Food and packaging (1) | 32.1 | % | 31.9 | % | |||||||
Payroll and employee benefits (1) | 27.2 | % | 27.7 | % | |||||||
Occupancy and other (1) | 21.3 | % | 22.0 | % | |||||||
Total company restaurant costs (1) | 80.7 | % | 81.7 | % | |||||||
Franchise costs (1) | 49.0 | % | 49.9 | % | |||||||
Selling, general and administrative expenses | 13.5 | % | 13.1 | % | |||||||
Impairment and other charges, net | 0.5 | % | 0.4 | % | |||||||
Gains on the sale of company-operated restaurants | (0.2 | )% | (0.1 | )% | |||||||
Earnings from operations | 13.5 | % | 12.7 | % | |||||||
Income tax rate (2) | 36.1 | % | 37.3 | % | |||||||
(1) As a percentage of the related sales and/or revenues. | |||||||||||
(2) As a percentage of earnings from continuing operations and before income taxes. | |||||||||||
JACK IN THE BOX INC. AND SUBSIDIARIES |
|||||||||||||||||||
SUPPLEMENTAL INFORMATION |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
The following table presents Jack in the Box and Qdoba company restaurant sales, costs and costs as a percentage of the related sales. Percentages may not add due to rounding. |
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SUPPLEMENTAL COMPANY-OPERATED RESTAURANTS STATEMENTS OF EARNINGS DATA | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Sixteen Weeks Ended | |||||||||||||||||||
January 18, 2015 | January 19, 2014 | ||||||||||||||||||
Jack in the Box: | |||||||||||||||||||
Company restaurant sales | $ | 241,343 | $ | 243,871 | |||||||||||||||
Company restaurant costs: | |||||||||||||||||||
Food and packaging | 79,193 | 32.8 | % | 79,865 | 32.7 | % | |||||||||||||
Payroll and employee benefits | 66,743 | 27.7 | % | 67,482 | 27.7 | % | |||||||||||||
Occupancy and other | 48,631 | 20.2 | % | 49,987 | 20.5 | % | |||||||||||||
Total company restaurant costs | $ | 194,567 | 80.6 | % | $ | 197,334 | 80.9 | % | |||||||||||
Qdoba: | |||||||||||||||||||
Company restaurant sales | $ | 110,553 | $ | 94,957 | |||||||||||||||
Company restaurant costs: | |||||||||||||||||||
Food and packaging | 33,916 | 30.7 | % | 28,373 | 29.9 | % | |||||||||||||
Payroll and employee benefits | 28,936 | 26.2 | % | 26,334 | 27.7 | % | |||||||||||||
Occupancy and other | 26,400 | 23.9 | % | 24,722 | 26.0 | % | |||||||||||||
Total company restaurant costs | $ | 89,252 | 80.7 | % | $ | 79,429 | 83.6 | % | |||||||||||
JACK IN THE BOX INC. AND SUBSIDIARIES | ||||||||||
SUPPLEMENTAL INFORMATION | ||||||||||
(Unaudited) | ||||||||||
The following table presents the detail of our franchise revenues and costs (dollars in thousands): | ||||||||||
Sixteen Weeks Ended | ||||||||||
January 18, 2015 | January 19, 2014 | |||||||||
Royalties | $ | 45,829 | $ | 42,701 | ||||||
Rental income | 69,382 | 66,975 | ||||||||
Franchise fees and other | 1,514 | 1,577 | ||||||||
Total franchise revenues | $ | 116,725 | $ | 111,253 | ||||||
Rental expense | $ | 42,140 | $ | 41,127 | ||||||
Depreciation and amortization | 10,221 | 10,490 | ||||||||
Other franchise support costs | 4,780 | 3,893 | ||||||||
Total franchise costs | $ | 57,141 | $ | 55,510 | ||||||
JACK IN THE BOX INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||
The following table summarizes the year-to-date changes in the number and mix of Jack in the Box and Qdoba company and franchise restaurants: | |||||||||||||||||||||||||||||
January 18, 2015 | January 19, 2014 | ||||||||||||||||||||||||||||
Company | Franchise | Total | Company | Franchise | Total | ||||||||||||||||||||||||
Jack in the Box: | |||||||||||||||||||||||||||||
Beginning of year | 431 | 1,819 | 2,250 | 465 | 1,786 | 2,251 | |||||||||||||||||||||||
New | 1 | 6 | 7 | — | 5 | 5 | |||||||||||||||||||||||
Refranchised | (1 | ) | 1 | — | — | — | — | ||||||||||||||||||||||
Acquired from franchisees | — | — | — | 4 | (4 | ) | — | ||||||||||||||||||||||
Closed | — | (4 | ) | (4 | ) | — | (2 | ) | (2 | ) | |||||||||||||||||||
End of period | 431 | 1,822 | 2,253 | 469 | 1,785 | 2,254 | |||||||||||||||||||||||
% of Jack in the Box system | 19 | % | 81 | % | 100 | % | 21 | % | 79 | % | 100 | % | |||||||||||||||||
% of consolidated system | 58 | % | 85 | % | 78 | % | 61 | % | 85 | % | 78 | % | |||||||||||||||||
Qdoba: | |||||||||||||||||||||||||||||
Beginning of year | 310 | 328 | 638 | 296 | 319 | 615 | |||||||||||||||||||||||
New | 3 | 6 | 9 | 6 | 8 | 14 | |||||||||||||||||||||||
Closed | (2 | ) | (4 | ) | (6 | ) | (1 | ) | (8 | ) | (9 | ) | |||||||||||||||||
End of period | 311 | 330 | 641 | 301 | 319 | 620 | |||||||||||||||||||||||
% of Qdoba system | 49 | % | 51 | % | 100 | % | 49 | % | 51 | % | 100 | % | |||||||||||||||||
% of consolidated system | 42 | % | 15 | % | 22 | % | 39 | % | 15 | % | 22 | % | |||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||
Total system | 742 | 2,152 | 2,894 | 770 | 2,104 | 2,874 | |||||||||||||||||||||||
% of consolidated system | 26 | % | 74 | % | 100 | % | 27 | % | 73 | % | 100 | % |
CONTACT:
Jack in the Box Inc.
Investor Contact:
Carol
DiRaimo, (858) 571-2407
or
Media Contact:
Brian Luscomb,
(858) 571-2291