SEGMENT REPORTING

9 Months Ended

Jul. 09, 2023

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. This segment reporting structure reflects our current management structure, internal reporting method and financial information used in deciding how to allocate our resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment.

The Company measures and evaluates our segments based on segment revenues and segment profit. Our measure of segment profit excludes depreciation and amortization, share-based compensation, company-owned life insurance (“COLI”) gains/losses, net of changes in our non-qualified deferred compensation obligation supported by these policies, acquisition, integration, and restructuring costs, gains on the sale of company-operated 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 9, 2023		July 10, 2022		July 9, 2023		July 10, 2022
Revenues by segment:
Jack in the Box	$	280,211	$	271,976	$	921,960	$	876,024
Del Taco	116,731		126,329		397,822		189,286
Consolidated revenues	$	396,942	$	398,305	$	1,319,782	$	1,065,310
Segment operating profit:
Jack in the Box	$	72,067	$	64,951	$	246,779	$	216,935
Del Taco	4,167		12,209		25,131		18,265
Total segment operating profit	$	76,234	$	77,160	$	271,910	$	235,200
Depreciation and amortization	14,460		16,713		48,460		40,754
Acquisition, integration, and restructuring costs	2,463		2,753		5,359		18,864
Share-based compensation	2,059		1,607		7,991		5,541
Net COLI (gains) losses	(579)		4,585		(7,147)		7,165
Gains on the sale of company-operated restaurants	(5,794)		(802)		(10,323)		(1,660)
Amortization of favorable and unfavorable leases and subleases, net	83		437		1,458		685
Earnings from operations	$	63,542	$	51,867	$	226,112	$	163,851
Total capital expenditures by segment:
Jack in the Box	$	24,588	$	7,603	$	39,844	$	24,933
Del Taco	8,053		5,965		16,825		9,416
Total capital expenditures	$	32,641	$	13,568	$	56,669	$	34,349
Total depreciation and amortization by segment:
Jack in the Box	$	8,319	$	9,202	$	27,631	$	31,038
Del Taco	6,141		7,511		20,829		9,716
Total depreciation and amortization	$	14,460	$	16,713	$	48,460	$	40,754

The Company does not evaluate, manage or measure performance of segments using asset, interest income and expense, or income tax information; accordingly, this information by segment is not prepared or disclosed.