10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 21, 2024

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from ________to________.

Commission File Number: 1-9390

____________________________________________________

JACK IN THE BOX INC.

(Exact name of registrant as specified in its charter)

 _______________________________________________________________________________________

Delaware	95-2698708
(State of Incorporation)	(I.R.S. Employer Identification No.)

9357 Spectrum Center Blvd.

San Diego, California 92123

(Address of principal executive offices)

Registrant’s telephone number, including area code (858) 571-2121

_______________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	JACK	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  þ    No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐    No  þ

As of the close of business February 15, 2024, 19,536,206 shares of the registrant’s common stock were outstanding.

JACK IN THE BOX INC. AND SUBSIDIARIES

INDEX

 

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Earnings	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Statements of Cash Flows	5
	Condensed Consolidated Statements of Stockholders’ Deficit	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults of Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33
	Signature	34

1

PART I. FINANCIAL INFORMATION

ITEM 1.    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

	January 21, 2024		October 1, 2023
ASSETS
Current assets:
Cash	$	53,975	$	157,653
Restricted cash	28,559		28,254
Accounts and other receivables, net	63,251		99,678
Inventories	4,381		3,896
Prepaid expenses	8,982		16,911
Current assets held for sale	23,656		13,925
Other current assets	6,109		5,667
Total current assets	188,913		325,984
Property and equipment:
Property and equipment, at cost	1,261,323		1,258,589
Less accumulated depreciation and amortization	(845,375)		(846,559)
Property and equipment, net	415,948		412,030
Other assets:
Operating lease right-of-use assets	1,411,019		1,397,555
Intangible assets, net	11,251		11,330
Trademarks	283,500		283,500
Goodwill	329,583		329,986
Other assets, net	247,048		240,707
Total other assets	2,282,401		2,263,078
	$	2,887,262	$	3,001,092
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt	$	29,941	$	29,964
Current operating lease liabilities	159,045		142,518
Accounts payable	70,135		84,960
Accrued liabilities	167,788		302,178
Total current liabilities	426,909		559,620
Long-term liabilities:
Long-term debt, net of current maturities	1,718,813		1,724,933
Long-term operating lease liabilities, net of current portion	1,277,947		1,265,514
Deferred tax liabilities	27,878		26,229
Other long-term liabilities	143,872		143,123
Total long-term liabilities	3,168,510		3,159,799
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, 82,752,989 and 82,645,814 issued, respectively	827		826
Capital in excess of par value	524,970		520,076
Retained earnings	1,967,555		1,937,598
Accumulated other comprehensive loss	(51,306)		(51,790)
Treasury stock, at cost, 63,218,724 and 62,910,964 shares, respectively	(3,150,203)		(3,125,037)
Total stockholders’ deficit	(708,157)		(718,327)
	$	2,887,262	$	3,001,092

See accompanying notes to condensed consolidated financial statements.

2

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

(Unaudited)

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Revenues:
Company restaurant sales	$	224,040	$	270,191
Franchise rental revenues	113,196		108,830
Franchise royalties and other	73,330		76,390
Franchise contributions for advertising and other services	76,932		71,685
	487,498		527,096
Operating costs and expenses, net:
Food and packaging	64,132		81,933
Payroll and employee benefits	73,054		88,641
Occupancy and other	42,053		51,371
Franchise occupancy expenses	72,624		67,224
Franchise support and other costs	5,194		1,877
Franchise advertising and other services expenses	80,234		74,570
Selling, general and administrative expenses	46,365		50,142
Depreciation and amortization	18,473		19,402
Pre-opening costs	465		331
Other operating expenses (income), net	5,170		(5,501)
Losses (gains) on the sale of company-operated restaurants	254		(3,825)
	408,018		426,165
Earnings from operations	79,480		100,931
Other pension and post-retirement expenses, net	2,106		2,144
Interest expense, net	24,486		26,148
Earnings before income taxes	52,888		72,639
Income taxes	14,205		19,385
Net earnings	$	38,683	$	53,254
Earnings per share:
Basic	$	1.94	$	2.55
Diluted	$	1.93	$	2.54
Cash dividends declared per common share	$	0.44	$	0.44

See accompanying notes to condensed consolidated financial statements.

3

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Net earnings	$	38,683	$	53,254
Other comprehensive income:
Actuarial losses and prior service costs reclassified to earnings	657		664
Tax effect	(173)		(175)
Other comprehensive income, net of taxes	484		489
Comprehensive income	$	39,167	$	53,743

See accompanying notes to condensed consolidated financial statements.

4

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Cash flows from operating activities:
Net earnings	$	38,683	$	53,254
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	18,473		19,402
Amortization of franchise tenant improvement allowances and incentives	1,418		1,215
Deferred finance cost amortization	1,493		1,616
Excess tax (benefits) deficiency from share-based compensation arrangements	(9)		143
Deferred income taxes	(719)		3,385
Share-based compensation expense	4,820		3,534
Pension and post-retirement expense	2,106		2,144
Gains on cash surrender value of company-owned life insurance	(6,161)		(6,631)
Losses (gains) on the sale of company-operated restaurants	254		(3,825)
Gains on acquisition of restaurants	(2,357)		—
Losses (gains) on the disposition of property and equipment, net	1,011		(10,009)
Impairment charges and other	28		483
Changes in assets and liabilities, excluding acquisitions:
Accounts and other receivables	40,139		37,813
Inventories	(484)		194
Prepaid expenses and other current assets	9,587		6,953
Operating lease right-of-use assets and lease liabilities	12,208		11,281
Accounts payable	(13,826)		(31,285)
Accrued liabilities	(125,861)		(24,677)
Pension and post-retirement contributions	(1,698)		(1,688)
Franchise tenant improvement allowance and incentive disbursements	(523)		(527)
Other	(1,257)		(303)
Cash flows (used in) provided by operating activities	(22,675)		62,472
Cash flows from investing activities:
Purchases of property and equipment	(38,829)		(24,028)
Proceeds from the sale of property and equipment	516		22,103
Proceeds from the sale of company-operated restaurants	1,739		17,609
Cash flows (used in) provided by investing activities	(36,574)		15,684
Cash flows from financing activities:
Principal repayments on debt	(7,481)		(7,557)
Dividends paid on common stock	(8,652)		(9,154)
Proceeds from issuance of common stock	1		—
Repurchases of common stock	(25,000)		(14,999)
Payroll tax payments for equity award issuances	(2,992)		(868)
Cash flows used in financing activities	(44,124)		(32,578)
Net (decrease) increase in cash and restricted cash	(103,373)		45,578
Cash and restricted cash at beginning of period	185,907		136,040
Cash and restricted cash at end of period	$	82,534	$	181,618

See accompanying notes to condensed consolidated financial statements.

5

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In thousands)

(Unaudited)

	Number of Shares	Amount		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balance at October 1, 2023	82,646	$	826	$	520,076	$	1,937,598	$	(51,790)	$	(3,125,037)	$	(718,327)
Shares issued under stock plans, including tax benefit	107	1		—		—		—		—		1
Share-based compensation	—	—		4,820		—		—		—		4,820
Dividends declared	—	—		74		(8,726)		—		—		(8,652)
Purchases of treasury stock	—	—		—		—		—		(25,166)		(25,166)
Net earnings	—	—		—		38,683		—		—		38,683
Other comprehensive income	—	—		—		—		484		—		484
Balance at January 21, 2024	82,753	$	827	$	524,970	$	1,967,555	$	(51,306)	$	(3,150,203)	$	(708,157)

	Number of Shares	Amount		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balance at October 2, 2022	82,581	$	826	$	508,323	$	1,842,947	$	(53,982)	$	(3,034,306)	$	(736,192)
Shares issued under stock plans, including tax benefit	36	—		—		—		—		—		—
Share-based compensation	—	—		3,534		—		—		—		3,534
Dividends declared	—	—		67		(9,221)		—		—		(9,154)
Purchases of treasury stock	—	—		—		—		—		(14,999)		(14,999)
Net earnings	—	—		—		53,254		—		—		53,254
Other comprehensive income	—	—		—		—		489		—		489
Balance at January 22, 2023	82,617	$	826	$	511,924	$	1,886,980	$	(53,493)	$	(3,049,305)	$	(703,068)

See accompanying notes to condensed consolidated financial statements.

6

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.BASIS OF PRESENTATION

Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box® and Del Taco® restaurant brands.

On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. (“Del Taco”) for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. Del Taco is a nationwide operator and franchisor of restaurants featuring fresh and fast Mexican and American inspired cuisines.

As of January 21, 2024, there were 144 company-operated and 2,048 franchise-operated Jack in the Box restaurants and 179 company-operated and 413 franchise-operated Del Taco restaurants.

References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of “we,” “us” and “our.”

Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”).

These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023 (“2023 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2023 Form 10-K.

In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year.

Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Fiscal years 2024 and 2023 include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2024 and 2023 refer to the 16 weeks (“quarter”) and 16 weeks (year-to-date”) ended January 21, 2024 and January 22, 2023, respectively, unless otherwise indicated.

Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.

Advertising costs — The Company administers marketing funds at each of its restaurant brands that include contractual contributions. In 2024 and 2023, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales, and marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Year-to-date incremental contributions made by the Company for both brands were $0.2 million and less than $0.1 million in 2024 and 2023, respectively.

Total contributions made by the Company are included in “Selling, general, and administrative expenses” in the accompanying condensed consolidated statements of earnings and for the quarter totaled $10.4 million and $12.2 million in 2024 and 2023, respectively.

Allowance for credit losses — The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased.

7

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the activity in the allowance for doubtful accounts (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Balance as of beginning of period	$	(4,146)	$	(5,975)
(Provision) reversal for expected credit losses	(21)		1,445
Balance as of end of period	$	(4,167)	$	(4,530)

Business combinations — The Company accounts for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill.

Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit prior to the disposal. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off.

Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. The Company’s two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment by determining whether the fair value of our reporting units exceed their carrying values.

The Company tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events and circumstances warrant. The Company performs this testing during the third quarter of each year.

Our impairment analyses first includes a qualitative assessment to determine whether events or circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. Significant factors considered in this assessment include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance, and results of past impairment tests. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying value, we perform a quantitative impairment test.

Recent accounting pronouncements — The Company reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on its condensed consolidated financial statements.

2.REVENUE

Nature of products and services — The Company derives revenue from retail sales at Jack in the Box and Del Taco company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants.

Our franchise arrangements generally provide for an initial franchise fee per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees, as well as sourcing fees for Jack in the Box franchise agreements.

Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the quarter ended January 21, 2024 (in thousands):

	Jack in the Box		Del Taco		Total
Company restaurant sales	$	132,057	$	91,983	$	224,040
Franchise rental revenues	105,578		7,618		113,196
Franchise royalties	61,323		9,454		70,777
Marketing fees	61,220		7,731		68,951
Technology and sourcing fees	6,142		1,839		7,981
Franchise fees and other services	2,020		533		2,553
Total revenue	$	368,340	$	119,158	$	487,498

8

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table disaggregates revenue by segment and primary source for the quarter ended January 22, 2023 (in thousands):

	Jack in the Box		Del Taco		Total
Company restaurant sales	$	126,142	$	144,049	$	270,191
Franchise rental revenues	106,096		2,734		108,830
Franchise royalties	67,569		6,934		74,503
Marketing fees	60,344		5,654		65,998
Technology and sourcing fees	4,969		718		5,687
Franchise fees and other services	1,797		90		1,887
Total revenue	$	366,917	$	160,179	$	527,096

In October 2022, a Jack in the Box franchise operator paid the Company $7.3 million in order to sell his restaurants to a new franchisee at the current standard royalty rate, which is lower than the royalty rate in the existing franchise agreements. The payment represented the difference between the existing royalty rate and the new royalty rate based on projected future sales for the remaining term of the existing agreements. The payment was non-refundable and not subject to any adjustments based on actual future sales. The Company determined the transaction represented the termination of the existing agreement rather than the transfer of an agreement between franchisees. As such, the $7.3 million was recognized in franchise royalty revenue during the first quarter of 2023.

Contract liabilities — Contract liabilities consist of deferred revenue resulting from initial franchise and development fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. The Company classifies these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets.

A summary of significant changes in contract liabilities is presented below (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Deferred franchise and development fees at beginning of period	$	50,474	$	46,449
Revenue recognized	(1,988)		(1,639)
Additions	1,597		2,240
Deferred franchise and development fees at end of period	$	50,083	$	47,050

As of January 21, 2024, approximately $8.0 million of development fees related to unopened restaurants are included in deferred revenue. Timing of revenue recognition for development fees related to unopened restaurants is dependent upon the timing of restaurant openings and are recognized over the franchise term at the date of opening.

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 21, 2024 (in thousands):

Remainder of 2024	$	3,626
2025	5,052
2026	4,721
2027	4,377
2028	3,748
Thereafter	20,570
	$	42,094

The Company has applied the optional exemption, as provided for under ASC Topic 606, Revenue from Contracts with Customers, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

9

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

3.SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE

Refranchisings — The following table summarizes the number of restaurants sold to franchisees and the loss or gain recognized (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Restaurants sold to Jack in the Box franchisees	—		5
Restaurants sold to Del Taco franchisees	—		16
Proceeds from the sale of company-operated restaurants (1)	$	1,739	$	17,609
Net assets sold (primarily property and equipment)	—		(4,093)
Goodwill related to the sale of company-operated restaurants	—		(7,310)
Franchise fees	—		(577)
Sublease liabilities, net	—		(1,197)
Lease termination	—		(393)
Other (2)	(1,993)		(214)
(Loss) gain on the sale of company-operated restaurants	$	(254)	$	3,825

____________________________

(1)Amount in 2024 relates to additional proceeds received in connection with the extension of franchise agreements and the resolution of certain contingencies related to the sale of restaurants in the prior years.

(2)Amount in 2024 includes a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction that is expected to close in the second quarter of 2024. Amount in 2023 includes $0.2 million related to prior year refranchising transactions.

Assets held for sale — Assets classified as held for sale on our condensed consolidated balance sheets as of January 21, 2024 and October 1, 2023 have carrying amounts of $23.7 million and $13.9 million, respectively. These amounts relate to i) company-owned restaurants to be refranchised, ii) operating restaurant properties which we intend to sell to franchisees and/or sell and leaseback with a third party, and iii) closed restaurant properties which we are marketing for sale.

4.FRANCHISE ACQUISITIONS

Franchise acquisitions — During the first quarter of 2024, the Company acquired 9 Del Taco franchise restaurants for $86 thousand as part of two separate transactions, and recognized related gains of $2.4 million. This amount is recorded in “Other operating expenses (income), net” in the accompanying condensed consolidated statements of earnings. For further information, see Note 8, Other operating expenses (income), net, below in the notes to the condensed consolidated financial statement. The following table summarizes the number of restaurants acquired from franchisees and the gains recognized (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024
Restaurants acquired from Jack in the Box franchisees	—
Restaurants acquired from Del Taco franchisees	9
Purchase price (1)	$	(86)
Closing and acquisition costs	(43)
Property and equipment	3,612
Intangible assets	167
Operating lease right-of-use assets	3,211
Operating lease liabilities	(4,505)
Gain on the acquisition of franchise-operated restaurants	$	2,357

____________________________

(1)Comprised of outstanding receivables from franchisee forgiven upon acquisition.

10

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the first quarter of 2023, the Company did not acquire any Jack in the Box or Del Taco franchise restaurants.

We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3).

5.GOODWILL AND INTANGIBLE ASSETS, NET

The changes in the carrying amount of goodwill during the quarter ended January 21, 2024 was as follows (in thousands):

	Jack in the Box		Del Taco		Total
Balance at October 1, 2023	$	136,027	$	193,959	$	329,986
Reclassified to assets held for sale	—		(403)		(403)
Balance at January 21, 2024	$	136,027	$	193,556	$	329,583

The net carrying amounts of intangible assets other than goodwill with definite lives are as follows (in thousands):

	January 21, 2024						October 1, 2023
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Definite-lived intangible assets:
Sublease assets	$	2,671	$	(455)	$	2,216	$	2,671	$	(381)	$	2,290
Franchise contracts	9,700		(1,016)		8,684		9,700		(850)		8,850
Reacquired franchise rights	464		(113)		351		297		(107)		190
	$	12,835	$	(1,584)	$	11,251	$	12,668	$	(1,338)	$	11,330
Indefinite-lived intangible assets:
Del Taco trademark	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500
	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500

The following table summarizes, as of January 21, 2024, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):

Remainder of 2024	$	569
2025	816
2026	814
2027	827
2028	772
Thereafter	7,453
	$	11,251

6.LEASES

Nature of leases — The Company owns restaurant sites and also leases restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance, and common area maintenance, which are excluded from the measurement of the lease liability.

As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees in connection with refranchising transactions. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.”

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JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents rental income (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Operating lease income - franchise	$	78,249	$	73,520
Variable lease income - franchise	34,598		35,235
Amortization of sublease assets and liabilities, net	349		75
Franchise rental revenues	$	113,196	$	108,830
Operating lease income - closed restaurants and other (1)	$	2,312	$	2,240

____________________________

(1)Primarily relates to closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings.

7.FAIR VALUE MEASUREMENTS

Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (2) (Level 1)		Significant Other Observable Inputs (2) (Level 2)		Significant Unobservable Inputs (2) (Level 3)
Fair value measurements as of January 21, 2024:
Non-qualified deferred compensation plan (1)	$	17,798	$	17,798	$	—	$	—
Total liabilities at fair value	$	17,798	$	17,798	$	—	$	—
Fair value measurements as of October 1, 2023:
Non-qualified deferred compensation plan (1)	$	15,051	$	15,051	$	—	$	—
Total liabilities at fair value	$	15,051	$	15,051	$	—	$	—

____________________________

(1)The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets.

(2)The Company did not have any transfers in or out of Level 1, 2 or 3.

The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of January 21, 2024 and October 1, 2023 (in thousands):

	January 21, 2024				October 1, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Series 2019 Class A-2 Notes	$	705,063	$	663,488	$	706,875	$	640,046
Series 2022 Class A-2 Notes	$	1,061,500	$	942,028	$	1,067,000	$	903,056

The fair value of the Class A-2 Notes was estimated using Level 2 inputs based on quoted market prices in markets that are not considered active markets.

Non-financial assets and liabilities — The Company’s non-financial instruments, which primarily consist of property and equipment, operating lease right-of-use assets, goodwill and intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on an annual basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value.

In connection with our impairment reviews performed during 2024, the Company impaired certain Del Taco assets held for sale. For further information, see Note 3, Summary of Refranchisings and Assets Held For Sale, in the notes to the condensed consolidated financial statements.

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JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

8.OTHER OPERATING EXPENSES (INCOME), NET

Other operating expenses (income), net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Acquisition, integration, and strategic initiatives (1)	$	5,621	$	1,651
Costs of closed restaurants and other (2)	858		2,589
Accelerated depreciation	37		268
Gains on acquisition of restaurants (3)	(2,357)		—
Losses (gains) on disposition of property and equipment, net (4)	1,011		(10,009)
	$	5,170	$	(5,501)

____________________________

(1)Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees.

(2)Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants.

(3)Relates to the gains on acquisition of 9 Del Taco restaurants.

(4)In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale.

9.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.

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JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

10.INCOME TAXES

The income tax provisions reflect a year-to-date effective tax rate of 26.9% in 2024, as compared to 26.7% in fiscal year 2023. The major component of the year-over-year increase in tax rates was an increase in the impact of non-deductible officers’ compensation.

11.RETIREMENT PLANS

Defined benefit pension plans — The Company sponsors two defined benefit pension plans, a frozen “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. Benefits under both plans are based on the employee’s years of service and compensation over defined periods of employment.

Post-retirement healthcare plans — The Company also sponsors two healthcare plans, closed to new participants, that provide post-retirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and they contain other cost-sharing features such as deductibles and coinsurance.

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JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Net periodic benefit cost (credit) — The components of net periodic benefit cost (credit) in each period were as follows (in thousands): 

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Defined benefit pension plans:
Interest cost	$	5,839	$	5,913
Expected return on plan assets	(4,609)		(4,648)
Actuarial losses (1)	933		944
Amortization of unrecognized prior service costs (1)	5		6
Net periodic benefit cost	$	2,168	$	2,215
Post-retirement healthcare plans:
Interest cost	$	219	$	215
Actuarial gains (1)	(281)		(286)
Net periodic benefit credit	$	(62)	$	(71)

____________________________

(1)Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.”

Future cash flows — The Company’s policy is to fund our plans at or above the minimum required by law. As of the date of our last actuarial funding valuation, there was no minimum contribution funding requirement for the Qualified Plan. Details regarding 2024 contributions are as follows (in thousands):

	SERP		Post-Retirement Healthcare Plans
Net year-to-date contributions	$	1,310	$	388
Remaining estimated net contributions during fiscal 2024	$	3,828	$	717

The Company continues to evaluate contributions to our Qualified Plan based on changes in pension assets as a result of asset performance in the current market and the economic environment. The Company does not anticipate making any contributions to our Qualified Plan in fiscal 2024.

12.STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK

Repurchases of common stock — The Company repurchased 0.3 million shares of its common stock in the first quarter of fiscal 2024 for an aggregate cost of $25.2 million, including applicable excise tax. As of January 21, 2024, there was $225.0 million remaining under share repurchase programs authorized by the Board of Directors which do not expire.

Dividends — During the first quarter of fiscal 2024, the Board of Directors declared a cash dividend of $0.44 per common share totaling $8.7 million. Future dividends are subject to approval by our Board of Directors.

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JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

13.WEIGHTED AVERAGE SHARES OUTSTANDING

The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):

	Sixteen Weeks Ended
	January 21, 2024	January 22, 2023
Weighted-average shares outstanding – basic	19,893	20,921
Effect of potentially dilutive securities:
Nonvested stock awards and units	145	79
Performance share awards	13	—
Weighted-average shares outstanding – diluted	20,051	21,000
Excluded from diluted weighted-average shares outstanding:
Antidilutive	24	23
Performance conditions not satisfied at the end of the period	136	112

14.COMMITMENTS AND CONTINGENCIES

Legal matters — The Company assesses contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of January 21, 2024, the Company had accruals of $15.4 million for all of its legal matters in aggregate, presented within “Accrued liabilities” on our consolidated balance sheet. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. The Company regularly reviews contingencies to determine the adequacy of the accruals and related disclosures. The ultimate amount of loss may differ from these estimates. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure and the ultimate amount of loss may differ materially from these estimates in the near term.

Gessele v. Jack in the Box Inc. — In August 2010, five former Jack in the Box employees instituted litigation in federal court in Oregon alleging claims under the federal Fair Labor Standards Act and Oregon wage and hour laws. The plaintiffs alleged that Jack in the Box failed to pay non-exempt employees for certain meal breaks and improperly made payroll deductions for shoe purchases and for workers’ compensation expenses, and later added additional claims relating to timing of final pay and related wage and hour claims involving employees of a franchisee. In 2016, the court dismissed the federal claims and those relating to franchise employees. In June 2017, the court granted class certification with respect to state law claims of improper deductions and late payment of final wages. The parties participated in a voluntary mediation on March 16, 2020, but the matter did not settle. On October 24, 2022, a jury awarded plaintiffs approximately $6.4 million in damages and penalties. The Company continues to dispute liability and the damage award and will defend against both through post-trial motions and all other available appellate remedies. As of January 21, 2024, the Company has accrued the verdict amount above, as well as estimated pre-judgment and post-judgment interest and an estimated fee award, for an additional $8.6 million. These amounts are included within “Accrued liabilities” on our condensed consolidated balance sheet. The Company will continue to accrue for post-judgment interest until the matter is resolved.

Torrez — In March 2014, a former Del Taco employee filed a purported Private Attorneys General Act claim and class action alleging various causes of action under California’s labor, wage, and hour laws. The plaintiff generally alleges Del Taco did not appropriately provide meal and rest breaks and failed to pay wages and reimburse business expenses to its California non-exempt employees. On November 12, 2021, the court granted, in part, the plaintiff's motion for class certification. The parties participated in voluntary mediation on May 24, 2022 and June 3, 2022. On June 4, 2022, we entered into a Settlement Memorandum of Understanding which obligated the Company to pay a gross settlement amount of $50.0 million, for which in exchange we will be released from all claims by the parties. On August 8, 2023, the court issued its final approval of the settlement and on August 9, 2023 final judgement was entered. The Company made its first payment of half of the settlement amount on August 28, 2023. Payment of the second half was made on November 27, 2023. As of January 21, 2024, the Company does not have any further amounts accrued on our condensed consolidated balance sheet for this matter.

16

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

J&D Restaurant Group — On April 17, 2019, the trustee for a bankrupt former franchisee filed a complaint generally alleging the Company wrongfully terminated the franchise agreements and unreasonably denied two perspective purchasers the former franchisee presented. The parties participated in a mediation in April 2021, and again in December 2022, but the matter did not settle. Trial commenced on January 9, 2023. On February 8, 2023, the jury returned a verdict finding the Company had not breached any contracts in terminating the franchise agreements or denying the proposed buyers. However, while the jury also found the Company had not violated the California Unfair Practices Act, it found for the plaintiff on the claim for breach of implied covenant of good faith and fair dealing, and awarded $8.0 million in damages. On May 9, 2023, the court granted the Company’s post-trial motion, overturning the jury verdict and ordering the plaintiff take nothing on its claims. As a result, the Company reversed the prior $8.0 million accrual, and as of January 21, 2024, the Company has no amounts accrued for this case on its condensed consolidated balance sheet. The Plaintiff has appealed the trial court’s post-trial rulings.

Other legal matters — In addition to the matters described above, we are subject to normal and routine litigation brought by former or current employees, customers, franchisees, vendors, landlords, shareholders, or others. We intend to defend ourselves in any such matters. Some of these matters may be covered, at least in part, by insurance or other third-party indemnity obligation. We record receivables from third party insurers when recovery has been determined to be probable.

Lease guarantees — We remain contingently liable for certain leases relating to our former Qdoba business which we sold in fiscal 2018. Under the Qdoba Purchase Agreement, the buyer has indemnified the Company of all claims related to these guarantees. As of January 21, 2024, the maximum potential liability of future undiscounted payments under these leases is approximately $21.8 million. The lease terms extend for a maximum of approximately 14 more years and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event of default, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. The Company has not recorded a liability for these guarantees as we believe the likelihood of making any future payments is remote.

15.SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands)

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Non-cash investing and financing transactions:
Decrease in obligations for purchases of property and equipment	$	6,053	$	4,147
Increase in dividends accrued or converted to common stock equivalents	$	74	$	68
Right-of use assets obtained in exchange for operating lease obligations	$	70,583	$	54,246

17

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

16.SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands)

	January 21, 2024		October 1, 2023
Accounts and other receivables, net:
Trade	$	56,099	$	93,660
Notes receivable, current portion	2,262		2,262
Income tax receivable	755		949
Other	8,302		6,953
Allowance for doubtful accounts	(4,167)		(4,146)
	$	63,251	$	99,678
Property and equipment, net
Land	$	94,151	$	92,007
Buildings	971,656		968,221
Restaurant and other equipment	162,496		166,714
Construction in progress	33,020		31,647
	1,261,323		1,258,589
Less accumulated depreciation and amortization	(845,375)		(846,559)
	$	415,948	$	412,030
Other assets, net:
Company-owned life insurance policies	$	119,366	$	113,205
Deferred rent receivable	41,538		41,947
Franchise tenant improvement allowance	44,381		43,590
Notes receivable, less current portion	11,406		11,927
Other	30,357		30,038
	$	247,048	$	240,707
Accrued liabilities:
Legal accruals	$	15,350	$	40,877
Income tax liabilities	796		58,155
Payroll and related taxes	32,962		49,521
Insurance	30,854		31,349
Sales and property taxes	25,936		30,508
Deferred rent income	5,500		19,397
Advertising	5,160		15,597
Deferred franchise and development fees	5,998		5,952
Other	45,232		50,822
	$	167,788	$	302,178
Other long-term liabilities:
Defined benefit pension plans	$	48,045	$	48,375
Deferred franchise and development fees	44,082		44,522
Other	51,745		50,226
	$	143,872	$	143,123

17.SUBSEQUENT EVENTS

Refranchising — Subsequent to the end of the first quarter of 2024, the Company signed an agreement to refranchise 13 restaurants in Atlanta.

Dividends — On February 16, 2024, the Board of Directors declared a cash dividend of $0.44 per common share, to be paid on March 27, 2024, to shareholders of record as of the close of business on March 15, 2024.

18

ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Fiscal years 2024 and 2023 include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2024 and 2023 refer to the 16 weeks (“quarter”) and 16 weeks (“year-to-date”) ended January 21, 2024 and January 22, 2023, respectively, unless otherwise indicated.

For an understanding of the significant factors that influenced our performance during 2024 and 2023, our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the condensed consolidated financial statements and related notes included in this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended October 1, 2023.

Our MD&A consists of the following sections:

•Overview — a general description of our business.

•Results of operations — an analysis of our condensed consolidated statements of earnings for the periods presented in our condensed consolidated financial statements.

•Liquidity and capital resources — an analysis of our cash flows, including capital expenditures, share repurchase activity, dividends, and known trends that may impact liquidity.

•Discussion of critical accounting estimates — a discussion of accounting policies that require critical judgments and estimates.

•New accounting pronouncements — a discussion of new accounting pronouncements, dates of implementation and the impact on our consolidated financial position or results of operations, if any.

•Cautionary statements regarding forward-looking statements — a discussion of the risks and uncertainties that may cause our actual results to differ materially from any forward-looking statements made by management.

We have included in our MD&A certain performance metrics that management uses to assess company performance and which we believe will be useful in analyzing and understanding our results of operations. These metrics include:

•Changes in sales at restaurants open more than one year (“same-store sales”), systemwide sales, franchised restaurant sales, and average unit volumes (“AUVs”). Same-store sales, restaurant sales, and AUVs are presented for franchised restaurants and on a system-wide basis, which includes company and franchise restaurants. Franchise sales represent sales at franchise restaurants and are revenues of our franchisees. We do not record franchise sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchise sales. We believe franchise and system same-store sales, franchised and system restaurant sales, and AUV information are useful to investors as they have a direct effect on the Company’s profitability.

Same-store sales, systemwide sales, franchised restaurant sales, and AUVs are not measurements determined in accordance with GAAP and should not be considered in isolation, or as an alternative to earnings from operations, or other similarly titled measures of other companies.

OVERVIEW

Our Business

Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® and Del Taco® quick-service restaurants. As of January 21, 2024, we operated and franchised 2,192 Jack in the Box quick-service restaurants, primarily in the western and southern United States, including two in Guam, and 592 Del Taco quick-service restaurants across 16 states.

We derive revenue from retail sales at company-operated restaurants and rental revenue, royalties (based upon a percent of sales), franchise fees and contributions for advertising and other services from franchisees.

19

RESULTS OF OPERATIONS

The following tables summarize changes in same-store sales for Jack in the Box and Del Taco company-operated, franchised, and system restaurants:

	Sixteen Weeks Ended
Jack in the Box:	January 21, 2024		January 22, 2023
Company	2.0	%	12.6	%
Franchise	0.7	%	7.4	%
System	0.8	%	7.8	%

	Sixteen Weeks Ended
Del Taco:	January 21, 2024		January 22, 2023
Company	1.8	%	3.1	%
Franchise	2.4	%	2.8	%
System	2.2	%	3.0	%

The following tables summarize year-to-date changes in the number and mix of company and franchise restaurants for our two brands:

	2024						2023
Jack in the Box:	Company		Franchise		Total		Company		Franchise		Total
Beginning of year	142		2,044		2,186		146		2,035		2,181
New	2		5		7		—		6		6
Refranchised	—		—		—		(5)		5		—
Closed	—		(1)		(1)		(1)		—		(1)
End of period	144		2,048		2,192		140		2,046		2,186
% of system	7	%	93	%	100	%	6	%	94	%	100	%

	2024						2023
Del Taco:	Company		Franchise		Total		Company		Franchise		Total
Beginning of year	171		421		592		290		301		591
New	—		3		3		—		2		2
Acquired from franchisees	9		(9)		—		—		—		—
Refranchised	—		—		—		(16)		16		—
Closed	(1)		(2)		(3)		(1)		—		(1)
End of period	179		413		592		273		319		592
% of system	30	%	70	%	100	%	46	%	54	%	100	%

20

The following tables summarize restaurant sales for company-operated, franchised, and systemwide sales for our two brands (in thousands):

	Sixteen Weeks Ended
Jack in the Box:	January 21, 2024		January 22, 2023
Company-operated restaurant sales	$	132,057	$	126,142
Franchised restaurant sales (1)	1,226,750		1,208,983
Systemwide sales (1)	$	1,358,807	$	1,335,125

	Sixteen Weeks Ended
Del Taco:	January 21, 2024		January 22, 2023
Company-operated restaurant sales	$	91,983	$	144,049
Franchised restaurant sales (1)	198,476		146,098
Systemwide sales (1)	$	290,459	$	290,147

____________________________

(1)Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. System sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and system restaurant sales information is useful to investors as they have a direct effect on the Company's profitability.

Jack in the Box Brand

Company Restaurant Operations

The following table presents company restaurant sales and costs as a percentage of the related sales (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024				January 22, 2023
Company restaurant sales	$	132,057			$	126,142
Company restaurant costs:
Food and packaging	$	39,261	29.7	%	$	41,326	32.8	%
Payroll and employee benefits	$	40,689	30.8	%	$	39,438	31.3	%
Occupancy and other	$	21,659	16.4	%	$	20,377	16.2	%

Company restaurant sales increased $5.9 million, or 4.7%, compared to the prior year, primarily due to an increase average check as well as an increase in the average number of company-operated restaurants, partially offset by a decline traffic. The following table presents the approximate impact of these items on company restaurant sales (in millions):

	Sixteen Weeks Ended
AUV increase	$	3.8
Increase in the average number of restaurants	2.1
Total change in company restaurant sales	$	5.9

Same-store sales at company-operated restaurants increased 2.0% compared to a year ago. The following table summarizes the change versus a year ago:

	Sixteen Weeks Ended
	January 21, 2024
Average check (1)	3.7	%
Transactions	(1.7)	%
Change in same-store sales	2.0	%

____________________________

(1)Includes price increases of approximately 7.1% in the quarter.

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Food and packaging costs as a percentage of company restaurant sales decreased 3.1% compared to the prior year primarily due to commodity deflation and menu price increases, partially offset by unfavorable menu item mix.

Commodity costs deflation was 2.9% in the first quarter of 2024 with the greatest impact in produce, beef and oil.

Payroll and employee benefit costs as a percentage of company restaurant sales decreased 0.5% compared to the prior year primarily due to sales leverage, partially offset by wage inflation and higher group insurance costs. Labor inflation in the quarter was approximately 2.8%.

Occupancy and other costs, as a percentage of company restaurant sales, increased 0.2% compared to the prior year primarily due to higher other operating costs including security, credit card fees, rent and delivery fees, partially offset by sales leverage in the current year.

Jack in the Box Franchise Operations

The following table presents franchise revenues and costs in each period and other information we believe is useful in analyzing the change in franchise operating results (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Franchise rental revenues	$	105,578	$	106,096
Royalties	61,323		67,569
Franchise fees and other	2,020		1,797
Franchise royalties and other	63,343		69,366
Franchise contributions for advertising and other services	67,362		65,313
Total franchise revenues	$	236,283	$	240,775
Franchise occupancy expenses	$	65,188	$	64,555
Franchise support and other costs	3,747		1,416
Franchise advertising and other services expenses	69,893		67,958
Total franchise costs	$	138,828	$	133,929
Franchise costs as a percentage of total franchise revenues	58.8%		55.6%
Average number of franchise restaurants	2,037		2,033
% increase	0.2%
Franchised restaurant sales	$	1,226,750	$	1,208,983
Franchised restaurant AUVs	$	602	$	595
Royalties as a percentage of total franchised restaurant sales (1)	5.0%		5.6%

____________________________

(1)Excluding the impact of the $7.3 million termination fee in the first quarter of 2023 royalties as a percentage of total franchised restaurant sales would be 5.0%.

Franchise rental revenues decreased $0.5 million, or 0.5%, compared to the prior year primarily due to lower property tax revenue of $0.3 million and higher tenant improvement amortization of $0.3 million.

Franchise royalties and other decreased $6.0 million, or 8.7%, compared to the prior year primarily due to a $7.3 million termination fee paid by a franchise operator who sold his restaurants to a new franchisee in the prior year, partially offset by an increase in franchise early termination fees in the current year. Refer to Note 2, Revenue, in the notes to the condensed consolidated financial statements for additional information related to the $7.3 million termination fee.

Franchise contributions for advertising and other services revenues increased $2.0 million, or 3.1%, compared to the prior year primarily due to higher marketing contribution driven by higher franchise restaurant sales, as well as an increase in technology support revenue and digital fee revenue in the current year.

Franchise occupancy expenses, primarily rent, increased $0.6 million, or 1.0%, compared to the prior year primarily due to an increase in operating lease costs in the current year.

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Franchise support and other costs increased $2.3 million compared to the prior year primarily due to the rollover of a bad debt reversal in the prior year and higher costs for brand standard audits in the current year.

Franchise advertising and other service expenses increased $1.9 million, or 2.8%, compared to the prior year primarily driven by higher franchise sales driving higher marketing, as well as higher digital processing fees in the current year.

Del Taco Brand

Company Restaurant Operations

The following table presents company restaurant sales and costs as a percentage of the related sales (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024				January 22, 2023
Company restaurant sales	$	91,983			$	144,049
Company restaurant costs:
Food and packaging	$	24,872	27.0	%	$	40,608	28.2	%
Payroll and employee benefits	$	32,366	35.2	%	$	49,203	34.2	%
Occupancy and other	$	20,394	22.2	%	$	30,993	21.5	%

Company restaurant sales decreased $52.1 million, or 36.1%, compared to the prior year, primarily due to the refranchising of 95 company operated restaurants since the first quarter of 2023. The following table presents the approximate impact of certain items on company restaurant sales (in millions):

	Sixteen Weeks Ended
	January 21, 2024
AUV increase	$	0.2
Change in the average number of restaurants	(52.3)
Total change in company restaurant sales	$	(52.1)

Same-store sales at company-operated restaurants increased 1.8% compared to a year ago. The following table summarizes the change versus a year ago:

	Sixteen Weeks Ended
	January 21, 2024
Average check (1)	3.6	%
Transactions	(1.8)	%
Change in same-store sales	1.8	%

________________________

(1)Includes price increases of approximately 6.3% compared to the prior year.

Food and packaging costs as a percentage of company restaurant sales decreased 1.2% compared to the prior year primarily due to menu price increases and commodity deflation.

Commodity costs deflation was 0.5% in the first quarter of 2024 with the greatest impact in produce, poultry, pork and cheese.

Payroll and employee benefit costs as a percentage of company restaurant sales increased 1.0% compared to the prior year primarily due to labor inflation, which was 3.2% in the first quarter of 2024.

Occupancy and other costs as a percentage of company restaurant sales increased 0.7% compared to the prior year primarily due to utility inflation and impact from a change in the mix of restaurants.

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Del Taco Franchise Operations

The following table presents franchise revenues and costs in each period and other information we believe is useful in analyzing the change in franchise operating results (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Franchise rental revenues	$	7,618	$	2,734
Royalties	9,454		6,934
Franchise fees and other	533		90
Franchise royalties and other	9,987		7,024
Franchise contributions for advertising and other services	9,569		6,371
Total franchise revenues	$	27,174	$	16,129
Franchise occupancy expenses	$	7,436	$	2,668
Franchise support and other costs	1,446		462
Franchise advertising and other services expenses	10,341		6,612
Total franchise costs	$	19,223	$	9,742
Franchise costs as a percentage of total franchise revenues	70.7%		60.4%
Average number of franchise restaurants	417		310
% increase	34.5%
Franchised restaurant sales	$	198,476	$	146,098
Franchised restaurant AUVs	$	476	$	471
Royalties as a percentage of total franchised restaurant sales	4.8%		4.7%

Franchise rental revenues increased $4.9 million, or 178.6%, compared to the prior year primarily due to higher rental income resulting from new subleases related to the 95 restaurants refranchised since the first quarter of 2023.

Franchise royalties and other increased $3.0 million, or 42.2%, compared to the prior year primarily due to higher franchise restaurant sales resulting from the 95 restaurants refranchised refranchised since the first quarter of 2023.

Franchise contributions for advertising and other services revenues increased $3.2 million, or 50.2%, compared to the prior year primarily due to higher marketing contributions related to higher franchise restaurant sales resulting from the 95 restaurants refranchised since the first quarter of 2023.

Franchise occupancy expenses, primarily rent, increased $4.8 million, or 178.7%, compared to the prior year primarily due to higher rent related to franchise subleases for the 95 restaurants refranchised since the first quarter of 2023.

Franchise support and other costs increased $1.0 million, or 213.0%, compared to the prior year primarily due to higher franchise development support costs.

Franchise advertising and other service expenses increased $3.7 million, or 56.4%, compared to the prior year primarily due to higher franchise restaurant sales resulting from the 95 restaurants refranchised since the first quarter of 2023.

Company-Wide Results

Depreciation and Amortization

Depreciation and amortization decreased $0.9 million compared to the prior year primarily due to the refranchising of Del Taco restaurants in the prior year resulting in a decrease in depreciation of $1.2 million, partially offset by an increase in depreciation driven by an increase in technology assets in the current year.

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Selling, General and Administrative (“SG&A”) Expenses

The following table presents the amounts for SG&A expenses in each period (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Advertising	$	10,393	$	12,153
Share-based compensation	4,820		3,534
Cash surrender value of COLI policies, net	(4,834)		(5,724)
Litigation matters	196		6,070
Other	35,790		34,109
	$	46,365	$	50,142

Advertising costs represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs decreased $1.8 million compared to the prior year primarily due to a decrease in company-operated restaurant sales in the current year due to refranchising.

Share-based compensation increased $1.3 million compared to the prior year primarily due higher achievement levels for performance-based equity awards.

The cash surrender value of our company-owned life insurance (“COLI”) policies, net of changes in our non-qualified deferred compensation obligation supported by these policies, are subject to market fluctuations. The changes in market values had a slightly less favorable impact of $0.9 million versus the prior year.

Litigation matters decreased $5.9 million versus the prior year primarily due to the timing of litigation developments in the prior year. Refer to Note 14, Commitments and Contingencies, in the condensed consolidated financial statements for additional information related to the legal matters.

Other Operating Expenses (Income), Net

Other operating expenses (income), net is comprised of the following (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Acquisition, integration, and strategic initiatives	$	5,621	$	1,651
Costs of closed restaurants and other	858		2,589
Accelerated depreciation	37		268
Gains on acquisition of restaurants	(2,357)		—
Losses (gains) on disposition of property and equipment, net	1,011		(10,009)
	$	5,170	$	(5,501)

Other operating expenses (income), net increased $10.7 million compared to the prior year primarily due to the $9.5 million of gains recognized in the prior year from the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale, partially offset by $3.7 million of additional consulting fees for strategic initiatives in the current year, as well as the $2.4 million purchase gains related to the acquisition of 9 Del Taco restaurants in the current year.

Gains and Losses on the Sale of Company-Operated Restaurants

For the quarter-to-date period 2024, the net loss on the sale of company-operated restaurants of $0.3 million relates to a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction that is expected to close in the second quarter of 2024, partially offset by additional proceeds received in connection with the extension of franchise agreements from the sale of restaurants in prior years.

For the first quarter of 2023, the Company sold five Jack in the Box company-operated restaurants and 16 Del Taco company-operated restaurants to franchisees, for which the Company recognized a net gain on the sale of company-operated restaurants of $3.8 million.

Refer to Note 3, Summary of Refranchisings and Assets Held for Sale, of the notes to the condensed consolidated financial statements for additional information regarding these transactions.

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Interest Expense, Net

Interest expense, net is comprised of the following (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Interest expense	$	25,363	$	26,537
Interest income	(877)		(389)
Interest expense, net	$	24,486	$	26,148

Interest expense, net, decreased $1.7 million primarily due to lower average borrowings resulting in a decrease of $1.2 million in interest expense compared to the prior year. Additionally, there was an increase in interest income of $0.5 million in the current year due to higher investment balances compared to fiscal year 2023.

Income Tax Expense

The income tax provisions reflect a year-to-date effective tax rate of 26.9% in 2024, as compared to 26.7% in fiscal year 2023. The major component of the year-over-year increase in tax rates was an increase in the impact of non-deductible officers’ compensation.

LIQUIDITY AND CAPITAL RESOURCES

General

Our primary sources of short-term and long-term liquidity and capital resources are cash flows from operations and borrowings available under our credit facilities. Our cash requirements consist principally of working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, franchise tenant improvement allowance and incentive distributions, dividend payments, and obligations related to our benefit plans. We generally use available cash flows from operations to invest in our business, service our debt obligations, pay dividends and repurchase shares of our common stock.

As of January 21, 2024, the Company had $82.5 million of cash and restricted cash on its consolidated balance sheet and available borrowings of $175.5 million under our $150.0 million Variable Funding Notes and our $75.0 million revolving credit facility. The Company continually assesses the optimal sources and uses of cash for our business. We review our balance sheet for any undervalued assets and pursue opportunities for capital sources, including the sale of our owned Jack in the Box properties and refranchising, primarily for Del Taco in the near term.

Based upon current levels of operations and anticipated growth, we expect that cash flows from operations, combined with our securitized financing facility and revolving credit facility, will be sufficient to meet our capital expenditure, working capital and debt service requirements for at least the next twelve months and the foreseeable future.

Cash Flows

The table below summarizes our cash flows from continuing operations (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Total cash provided by (used in):
Operating activities	$	(22,675)	$	62,472
Investing activities	(36,574)		15,684
Financing activities	(44,124)		(32,578)
Net cash flows	$	(103,373)	$	45,578

Operating Activities. Operating cash flows decreased $85.1 million compared with a year ago. This is primarily due to an unfavorable change in working capital of $79.5 million, as well as lower net income, when adjusted for non-cash items, of $5.7 million. The change in working capital is primarily a result of the payment of $50.3 million of fiscal 2023 income tax payments deferred in connection with the Southern California winter storm disaster area declaration, the final payment of the Torrez litigation of $25.5 million, and an increase bonus payments of $15.3 million. These decreases in cash were partially offset by an increase in the advertising accruals of $17.5 million.

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Investing Activities. Cash flows from investing activities decreased by $52.3 million compared with a year ago due to higher purchases of property and equipment of $14.8 million, lower proceeds in the current year from the sale of Jack in the Box restaurant properties to franchisees of $21.6 million, and lower proceeds from the sale of company-operated restaurants of $15.9 million.

Capital Expenditures — The composition of capital expenditures in each period follows (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Restaurants:
Remodel / refresh programs	$	3,240	$	3,473
Restaurant facility expenditures	12,269		9,046
Purchases of assets intended for sale	11,910		3,497
Purchase of land	2,144		—
Restaurant information technology	5,212		5,906
	34,775		21,922
Corporate Services:
Information technology	3,991		1,877
Corporate facilities	63		229
	4,054		2,106
Total capital expenditures	$	38,829	$	24,028

The increase in restaurant facility expenditures includes amounts spent on capital maintenance and other operational initiatives. The increase for the purchases of assets intended for sale and/or sale and leaseback includes amounts spent on exercising our right of first refusal to purchase land and building which we intend to sell and leaseback. The increase for corporate information technology includes spending in connection with our new enterprise resource planning system and digital workflow platform.

Sale of Company-Operated Restaurants — The following table details proceeds received in connection with our refranchising activities in each period (dollars in thousands).

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Number of Jack in the Box restaurants sold to franchisees	—		5
Number of Del Taco restaurants sold to franchisees	—		16
Total proceeds	$	1,739	$	17,609

For further information, see Note 3, Summary of Refranchisings and Assets Held for Sale, in the notes to the condensed consolidated financial statements.

Financing Activities. Cash flows from financing activities decreased by $11.5 million compared with a year ago. The change is primarily due to a $10.0 million increase in stock repurchases in the current year versus the prior year.

Repurchases of common stock — The Company repurchased 0.3 million shares of its common stock in fiscal 2024 for an aggregate cost of $25.2 million. As of January 21, 2024, there was $225.0 million remaining under share repurchase programs authorized by the Board of Directors which do not expire.

Dividends — Up through January 21, 2024, the Board of Directors declared a cash dividend of $0.44 per common share totaling $8.7 million.

On February 16, 2024, the Board of Directors declared a cash dividend of $0.44 per share, to be paid on March 27, 2024, to shareholders of record as of the close of business on March 15, 2024.

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Securitized Refinancing Transaction — On February 11, 2022, the Company completed the sale of $550.0 million of its Series 2022-1 3.445% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) and $550.0 million of its Series 2022-1 4.136% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes” and, together with the Class A-2-I Notes, the “2022 Notes”). Interest payments on the 2022 Notes are payable on a quarterly basis. The anticipated repayment dates of the 2022 Class A-2-I Notes and the Class A-2-II Notes will be February 2027 and February 2032, respectively, unless earlier prepaid to the extent permitted under the indenture that governs the 2022 Notes. The anticipated repayment dates of the existing 2019-1 Class A-2-II Notes and the Class A-2-III Notes are August 2026 and August 2029, respectively.

The Company also entered into a revolving financing facility of Series 2022-1 Variable Funding Senior Secured Notes (the “Variable Funding Notes”), which permits borrowings up to a maximum of $150.0 million, subject to certain borrowing conditions, a portion of which may be used to issue letters of credit. As of January 21, 2024, we did not have any outstanding borrowings and had available borrowing capacity of $100.5 million under our Variable Funding Notes, net of letters of credits issued of $49.5 million.

The 2022 Notes were issued in a privately placed securitization transaction pursuant to which certain of the Company’s revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly owned indirect subsidiaries of the Company that act as Guarantors of the Notes and that have pledged substantially all of their assets, excluding certain real estate assets and subject to certain limitations, to secure the Notes. The 2022 Notes are subject to the same covenants and restrictions as the Series 2019-1 Notes.

The quarterly principal payment on the Class A-2 Notes may be suspended when the specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as defined in the Indenture), is less than or equal to 5.0x. Exceeding the leverage ratio of 5.0x does not violate any covenant related to the Class A-2 Notes. Subsequent to closing the issuance of the 2022 Notes, the Company has had a leverage ratio of greater than 5.0x and, accordingly, the Company resumed making the scheduled amortization payments on its 2022 Notes and Series 2019-1 Notes beginning in the second quarter of 2022.

Restricted cash — In accordance with the terms of the Indenture, certain cash accounts have been established with the Indenture trustee for the benefit of the note holders and are restricted in their use. As of January 21, 2024, the Company had restricted cash of $28.6 million, which primarily represented cash collections and cash reserves held by the trustee to be used for payments of interest and commitment fees required for the Class A-1 and A-2 Notes.

Covenants and restrictions — The Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. The Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, the sum of gross sales for specified restaurants being below certain levels on certain measurement dates, certain manager termination events, an event of default, and the failure to repay or refinance the Class A-2 Notes on the applicable scheduled maturity date. The Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. As of January 21, 2024, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events.

Revolving credit facility — In connection with the Del Taco acquisition, Del Taco’s existing debt related to a Syndicated Credit Facility dated August 5, 2015, was repaid and extinguished on the Closing Date. On the Closing Date, Del Taco entered into a new syndicated credit facility with an aggregate principal amount of up to $75.0 million, which matures on March 1, 2024. The revolving credit facility, as amended, includes a limit of $20.0 million for letters of credit, all of which were cancelled as of October 1, 2023. As of January 21, 2024, we had no outstanding borrowings and available borrowing capacity of $75.0 million under the facility.

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DISCUSSION OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Critical accounting policies and estimates are those that we believe are most important for the portrayal of the Company’s financial condition and results, and that require management’s most subjective and complex judgments. Judgments and uncertainties regarding the application of these policies may result in materially different amounts being reported under various conditions or using different assumptions. There have been no material changes to the critical accounting policies and estimates previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023.

NEW ACCOUNTING PRONOUNCEMENTS

Refer to Note 1, Basis of Presentation, of the notes to condensed consolidated financial statements.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the federal securities laws. Any statements contained herein that are not historical facts may be deemed to be forward-looking statements. Forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would”, “should” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to:

•Changes in the availability of and the cost of labor could adversely affect our business.

•Changes in consumer confidence and declines in general economic conditions could negatively impact our financial results.

•Increases in food and commodity costs could decrease our profit margins or result in a modified menu, which could adversely affect our financial results.

•Failure to receive scheduled deliveries of high-quality food ingredients and other supplies could harm our operations and reputation.

•Inability to attract, train and retain top-performing personnel could adversely impact our financial results or business.

•Our business could be adversely affected by increased labor costs.

•Unionization activities or labor disputes may disrupt our operations and affect our profitability.

•Our insurance may not provide adequate levels of coverage against claims.

•We face significant competition in the food service industry and our inability to compete may adversely affect our business.

•Changes in demographic trends and in customer tastes and preferences could cause sales and the royalties we receive from franchisees to decline.

•Negative publicity relating to our business or industry could adversely impact our reputation.

•We may not have the same resources as our competitors for marketing, advertising and promotion.

•We may be adversely impacted by severe weather conditions, natural disasters, terrorist acts or civil unrest that could result in property damage, injury to employees and staff, and lost restaurant sales.

•Food safety and food-borne illness concerns may have an adverse effect on our business by reducing demand and increasing costs.

•We may not achieve our development goals.

•Our business and Del Taco’s business may not be integrated successfully, or such integration may be more difficult, time consuming, or costly than expected. Operating costs, customer loss, and business disruptions, including difficulties maintaining relationships with employees, customers, suppliers or vendors, may be greater than expected.

•Our highly franchised business model presents a number of risks, and the failure of our franchisees to operate successful and profitable restaurants could negatively impact our business.

•We are subject to financial and regulatory risks associated with our owned and leased properties and real estate development projects.

•We have a limited number of suppliers for our major products and rely on a distribution network with a limited number of distribution partners for the majority of our national distribution program. If our suppliers or distributors are unable to fulfill their obligations under their contracts, it could harm our operations.

•Increasing regulatory and legal complexity may adversely affect restaurant operations and our financial results.

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•Governmental regulation may adversely affect our existing and future operations and results, including by harming our ability to profitably operate our restaurants.

•The proliferation of federal, state, and local regulations increases our compliance risks, which in turn could adversely affect our business.

•Legislation and regulations regarding our products and ingredients, including the nutritional content of our products, could impact customer preferences and negatively impact our financial results.

•We may not be able to adequately protect our intellectual property, which could harm the value of our brand and adversely affect our business.

•We are subject to increasing legal complexity and may be subject to claims or lawsuits that are costly to defend and could result in our payment of substantial damages or settlement costs.

•If we fail to maintain an effective system of internal controls, we may not be able to accurately determine our financial results or prevent fraud. As a result, the Company’s stockholders could lose confidence in our financial results, which would harm our business and the value of the Company’s common shares.

•Changes in tax laws, interpretations of existing tax law, or adverse determinations by tax authorities could adversely affect our income tax expense and income tax payments.

•We may be subject to risk associated with disagreements with key stakeholders, such as franchisees.

•Actions of activist stockholders could cause us to incur substantial costs, divert management’s attention and resources, and have an adverse effect on our business.

•We are subject to the risk of cybersecurity breaches, intrusions, data loss, or other data security incidents.

•We are subject to risks associated with our increasing dependence on digital commerce platforms and technologies to maintain and grow sales, and we cannot predict the impact that these digital commerce platforms and technologies, other new or improved technologies or alternative methods of delivery may have on consumer behavior and our financial results.

•We are dependent on information technology and digital service providers and any material failure, misuse or interruption of our computer systems, supporting infrastructure, consumer-facing digital capabilities or social media platforms could adversely affect our business.

•The securitized debt instruments issued by certain of our wholly-owned subsidiaries have restrictive terms, and any failure to comply with such terms could result in default, which could harm the value of our brand and adversely affect our business.

•We have a significant amount of debt outstanding. Such indebtedness, along with the other contractual commitments of our Company or its subsidiaries, could adversely affect our business, financial condition and results of operations, as well as the ability of certain of our subsidiaries to meet debt payment obligations.

•The securitization transaction documents impose certain restrictions on our activities or the activities of our subsidiaries, and the failure to comply with such restrictions could adversely affect our business.

•The COVID-19 pandemic has disrupted and may continue to disrupt our business, which has affected and could continue to materially affect our operations, financial condition, and results of operations for an extended period of time.

These and other factors are identified and described in more detail in our filings with the Securities and Exchange Commission, including, but not limited to: the “Discussion of Critical Accounting Estimates,” and other sections in this Form 10-Q and the “Risk Factors” section of our most recent Annual Report on Form 10-K for the fiscal year ended October 1, 2023 (“Form 10-K”). These documents may be read free of charge on the SEC’s website at www.sec.gov. Potential investors are urged to consider these factors, more fully described in our Form 10-K, carefully in evaluating any forward-looking statements, and are cautioned not to place undue reliance on the forward-looking statements. All forward-looking statements are made only as of the date issued, and we do not undertake any obligation to update any forward-looking statements.

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ITEM 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in our quantitative and qualitative market risks set forth in Part II, Item 7A “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the fiscal year ended October 1, 2023.

ITEM 4.        CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Based on an evaluation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 of the Securities Exchange Act of 1934, as amended), as of the end of the Company’s quarter ended January 21, 2024, the Company’s Chief Executive Officer and Chief Financial Officer (its principal executive officer and principal financial officer, respectively) have concluded that the Company’s disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company’s internal control over financial reporting that occurred during the Company’s fiscal quarter ended January 21, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II. OTHER INFORMATION

There is no information required to be reported for any items under Part II, except as follows:

ITEM 1.        LEGAL PROCEEDINGS

See Note 14, Commitments and Contingencies, of the notes to the condensed consolidated financial statements for a discussion of our contingencies and legal matters.

ITEM 1A.    RISK FACTORS

When evaluating our business and our prospects, you should consider the risks and uncertainties described under Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended October 1, 2023, which we filed with the SEC on November 21, 2023, as updated in this Item 1A. You should also consider the risks and uncertainties discussed under the heading “Cautionary Statements Regarding Forward-Looking Statements” in Item 2 of this Quarterly Report on Form 10-Q. You should also refer to the other information set forth in this Quarterly Report and in our Annual Report on Form 10-K for the fiscal year ended October 1, 2023, including our financial statements and the related notes. These risks and uncertainties are not the only ones we face. Additional risks and uncertainties not presently known to us or that we currently consider immaterial may also impair our business operations. If any of the risks or uncertainties actually occur, our business and financial results could be harmed. In that case, the market price of our common stock could decline.

ITEM 2.        UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Stock Repurchases — In the first quarter of 2024, we repurchased 0.3 million shares of our common stock for an aggregate cost of $25.2 million, including the applicable excise tax. As of January 21, 2024, this leaves $225.0 million remaining under share repurchase programs authorized by the Board of Directors.

	(a) Total number of shares purchased	(b) Average price paid per share		(c) Total number of shares purchased as part of publicly announced programs	(d) Maximum dollar value that may yet be purchased under these programs (in thousands)
					$	250,000
October 2, 2023 - October 29, 2023	—	$	—	—	$	250,000
October 30, 2023 - November 26, 2023	—	$	—	—	$	250,000
November 27, 2023 - December 24, 2023	307,760	$	81.23	307,760	$	225,000
December 25, 2023 - January 21, 2024	—	$	—	—	$	225,000
Total	307,760			307,760

ITEM 3.        DEFAULTS OF SENIOR SECURITIES

None.

ITEM 4.        MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.        OTHER INFORMATION

During the three months ended January 21, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term in defined in Item 408(a) of Regulation S-K.

On November 30, 2023, the Company adopted a Rule 10b5-1 trading arrangement to repurchase shares of the Company’s common stock up to an aggregate purchase price of $25.0 million. This Rule 10b5-1 trading arrangement subsequently terminated on January 19, 2024.

32

ITEM 6.        EXHIBITS

Number	Description	Form	Filed with SEC
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	Filed herewith
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	—	Filed herewith
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	Filed herewith
32.2	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	—	Filed herewith
101.INS	iXBRL Instance Document
101.SCH	iXBRL Taxonomy Extension Schema Document
101.CAL	iXBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	iXBRL Taxonomy Extension Definition Linkbase Document
101.LAB	iXBRL Taxonomy Extension Label Linkbase Document
101.PRE	iXBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File formatted in iXBRL

33

SIGNATURE

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 thereunto duly authorized.

 

JACK IN THE BOX INC.
By:	/S/    BRIAN SCOTT
	Brian Scott
	Chief Financial Officer (principal financial officer) (Duly Authorized Signatory)

Date: February 21, 2024

34

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Darin Harris, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Jack in the Box Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	February 21, 2024	/S/ DARIN HARRIS
		Darin Harris
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian Scott, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Jack in the Box Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions)

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	February 21, 2024	/S/ BRIAN SCOTT
		Brian Scott
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Darin Harris, Chief Executive Officer of Jack in the Box Inc. (the “Registrant”), do hereby certify in accordance with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the quarterly report on Form 10-Q of the Registrant, to which this certification is attached as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated:	February 21, 2024	/S/ DARIN HARRIS
		Darin Harris
		Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Brian Scott, Chief Financial Officer of Jack in the Box Inc. (the “Registrant”), do hereby certify in accordance with 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)the quarterly report on Form 10-Q of the Registrant, to which this certification is attached as an exhibit (the “Report”), fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated:	February 21, 2024	/S/ BRIAN SCOTT
		Brian Scott
		Chief Financial Officer

XML

COVER PAGE - shares	4 Months Ended
	Jan. 21, 2024	Feb. 15, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 21, 2024
Document Transition Report	false
Entity File Number	1-9390
Entity Registrant Name	JACK IN THE BOX INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-2698708
Entity Address, Address Line One	9357 Spectrum Center Blvd.
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92123
City Area Code	858
Local Phone Number	571-2121
Title of 12(b) Security	Common Stock
Trading Symbol	JACK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		19,536,206
Entity Central Index Key	0000807882
Current Fiscal Year End Date	--09-29
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 21, 2024	Oct. 01, 2023
Current assets:
Cash	$ 53,975	$ 157,653
Restricted cash	28,559	28,254
Accounts and other receivables, net	63,251	99,678
Inventories	4,381	3,896
Prepaid expenses	8,982	16,911
Current assets held for sale	23,656	13,925
Other current assets	6,109	5,667
Total current assets	188,913	325,984
Property and equipment:
Property and equipment, at cost	1,261,323	1,258,589
Less accumulated depreciation and amortization	(845,375)	(846,559)
Property and equipment, net	415,948	412,030
Other assets:
Operating lease right-of-use assets	1,411,019	1,397,555
Intangible assets, net	11,251	11,330
Trademarks	283,500	283,500
Goodwill	329,583	329,986
Other assets, net	247,048	240,707
Total other assets	2,282,401	2,263,078
Total assets	2,887,262	3,001,092
Current liabilities:
Current maturities of long-term debt	29,941	29,964
Current operating lease liabilities	159,045	142,518
Accounts payable	70,135	84,960
Accrued liabilities	167,788	302,178
Total current liabilities	426,909	559,620
Long-term liabilities:
Long-term debt, net of current maturities	1,718,813	1,724,933
Long-term operating lease liabilities, net of current portion	1,277,947	1,265,514
Deferred tax liabilities	27,878	26,229
Other long-term liabilities	143,872	143,123
Total long-term liabilities	3,168,510	3,159,799
Stockholders’ deficit:
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued	0	0
Common stock $0.01 par value, 175,000,000 shares authorized, 82,752,989 and 82,645,814 issued, respectively	827	826
Capital in excess of par value	524,970	520,076
Retained earnings	1,967,555	1,937,598
Accumulated other comprehensive loss	(51,306)	(51,790)
Treasury stock, at cost, 63,218,724 and 62,910,964 shares, respectively	(3,150,203)	(3,125,037)
Total stockholders’ deficit	(708,157)	(718,327)
Total liabilities and stockholders' equity	$ 2,887,262	$ 3,001,092

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jan. 21, 2024	Oct. 01, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	175,000,000	175,000,000
Common stock, shares issued (in shares)	82,752,989	82,645,814
Treasury stock (in shares)	63,218,724	62,910,964

XML

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Revenues	$ 487,498	$ 527,096
Operating costs and expenses, net:
Food and packaging	64,132	81,933
Payroll and employee benefits	73,054	88,641
Occupancy and other	42,053	51,371
Franchise occupancy expenses	72,624	67,224
Franchise support and other costs	5,194	1,877
Selling, general and administrative expenses	46,365	50,142
Depreciation and amortization	18,473	19,402
Pre-opening costs	465	331
Other operating expenses (income), net	5,170	(5,501)
Losses (gains) on the sale of company-operated restaurants	254	(3,825)
Total operating costs and expenses	408,018	426,165
Earnings from operations	79,480	100,931
Other pension and post-retirement expenses, net	2,106	2,144
Interest expense, net	24,486	26,148
Earnings before income taxes	52,888	72,639
Income taxes	14,205	19,385
Net earnings	$ 38,683	$ 53,254
Earnings per share:
Basic (in USD per share)	$ 1.94	$ 2.55
Diluted (in USD per share)	1.93	2.54
Cash dividends declared per common share (in USD per share)	$ 0.44	$ 0.44
Company restaurant sales
Revenues	$ 224,040	$ 270,191
Franchise rental revenues
Revenues	113,196	108,830
Operating costs and expenses, net:
Franchise advertising and other services expenses	80,234	74,570
Franchise royalties and other
Revenues	73,330	76,390
Franchise contributions for advertising and other services
Revenues	$ 76,932	$ 71,685

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Statement of Comprehensive Income [Abstract]
Net earnings	$ 38,683	$ 53,254
Other comprehensive income:
Actuarial losses and prior service costs reclassified to earnings	657	664
Tax effect	(173)	(175)
Other comprehensive income, net of taxes	484	489
Comprehensive income	$ 39,167	$ 53,743

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands		4 Months Ended
		Jan. 21, 2024	Jan. 22, 2023
Cash flows from operating activities:
Net earnings		$ 38,683	$ 53,254
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		18,473	19,402
Amortization of franchise tenant improvement allowances and incentives		1,418	1,215
Deferred finance cost amortization		1,493	1,616
Excess tax (benefits) deficiency from share-based compensation arrangements		(9)	143
Deferred income taxes		(719)	3,385
Share-based compensation expense		4,820	3,534
Pension and post-retirement expense		2,106	2,144
Gains on cash surrender value of company-owned life insurance		(6,161)	(6,631)
Losses (gains) on the sale of company-operated restaurants		254	(3,825)
Gains on acquisition of restaurants	[1]	(2,357)	0
Losses (gains) on the disposition of property and equipment, net	[2]	1,011	(10,009)
Impairment charges and other		28	483
Changes in assets and liabilities, excluding acquisitions:
Accounts and other receivables		40,139	37,813
Inventories		(484)	194
Prepaid expenses and other current assets		9,587	6,953
Operating lease right-of-use assets and lease liabilities		12,208	11,281
Accounts payable		(13,826)	(31,285)
Accrued liabilities		(125,861)	(24,677)
Pension and post-retirement contributions		(1,698)	(1,688)
Franchise tenant improvement allowance and incentive disbursements		(523)	(527)
Other		(1,257)	(303)
Cash flows (used in) provided by operating activities		(22,675)	62,472
Cash flows from investing activities:
Purchases of property and equipment		(38,829)	(24,028)
Proceeds from the sale of property and equipment		516	22,103
Proceeds from the sale of company-operated restaurants		1,739	17,609
Cash flows (used in) provided by investing activities		(36,574)	15,684
Cash flows from financing activities:
Principal repayments on debt		(7,481)	(7,557)
Dividends paid on common stock		(8,652)	(9,154)
Proceeds from issuance of common stock		1	0
Repurchases of common stock		(25,000)	(14,999)
Payroll tax payments for equity award issuances		(2,992)	(868)
Cash flows used in financing activities		(44,124)	(32,578)
Net (decrease) increase in cash and restricted cash		(103,373)	45,578
Cash and restricted cash at beginning of period		185,907	136,040
Cash and restricted cash at end of period		$ 82,534	$ 181,618

[1] gains on acquisition of 9 Del Taco restaurants.

[2] In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale

XML

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning balance (in shares) at Oct. 02, 2022		82,581
Beginning balance at Oct. 02, 2022	$ (736,192)	$ 826	$ 508,323	$ 1,842,947	$ (53,982)	$ (3,034,306)
Shares issued under stock plans, including tax benefit (in shares)		36
Share-based compensation	3,534		3,534
Dividends declared	(9,154)		67	(9,221)
Purchases of treasury stock	(14,999)					(14,999)
Net earnings	53,254			53,254
Other comprehensive income	489				489
Ending balance (in shares) at Jan. 22, 2023		82,617
Ending balance at Jan. 22, 2023	(703,068)	$ 826	511,924	1,886,980	(53,493)	(3,049,305)
Beginning balance (in shares) at Oct. 01, 2023		82,646
Beginning balance at Oct. 01, 2023	(718,327)	$ 826	520,076	1,937,598	(51,790)	(3,125,037)
Shares issued under stock plans, including tax benefit (in shares)		107
Shares issued under stock plans, including tax benefit	1	$ 1
Share-based compensation	4,820		4,820
Dividends declared	(8,652)		74	(8,726)
Purchases of treasury stock	(25,166)					(25,166)
Net earnings	38,683			38,683
Other comprehensive income	484				484
Ending balance (in shares) at Jan. 21, 2024		82,753
Ending balance at Jan. 21, 2024	$ (708,157)	$ 827	$ 524,970	$ 1,967,555	$ (51,306)	$ (3,150,203)

XML

BASIS OF PRESENTATION

4 Months Ended

Jan. 21, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box® and Del Taco® restaurant brands.

On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. (“Del Taco”) for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. Del Taco is a nationwide operator and franchisor of restaurants featuring fresh and fast Mexican and American inspired cuisines.

As of January 21, 2024, there were 144 company-operated and 2,048 franchise-operated Jack in the Box restaurants and 179 company-operated and 413 franchise-operated Del Taco restaurants.

References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of “we,” “us” and “our.”

Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”).

These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023 (“2023 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2023 Form 10-K.

In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year.

Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Fiscal years 2024 and 2023 include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2024 and 2023 refer to the 16 weeks (“quarter”) and 16 weeks (year-to-date”) ended January 21, 2024 and January 22, 2023, respectively, unless otherwise indicated.

Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.

Advertising costs — The Company administers marketing funds at each of its restaurant brands that include contractual contributions. In 2024 and 2023, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales, and marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Year-to-date incremental contributions made by the Company for both brands were $0.2 million and less than $0.1 million in 2024 and 2023, respectively.

Total contributions made by the Company are included in “Selling, general, and administrative expenses” in the accompanying condensed consolidated statements of earnings and for the quarter totaled $10.4 million and $12.2 million in 2024 and 2023, respectively.

Allowance for credit losses — The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased.

The following table summarizes the activity in the allowance for doubtful accounts (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Balance as of beginning of period	$	(4,146)	$	(5,975)
(Provision) reversal for expected credit losses	(21)		1,445
Balance as of end of period	$	(4,167)	$	(4,530)

Business combinations — The Company accounts for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill.

Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit prior to the disposal. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off.

Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. The Company’s two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment by determining whether the fair value of our reporting units exceed their carrying values.

The Company tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events and circumstances warrant. The Company performs this testing during the third quarter of each year.

Our impairment analyses first includes a qualitative assessment to determine whether events or circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. Significant factors considered in this assessment include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance, and results of past impairment tests. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying value, we perform a quantitative impairment test.

Recent accounting pronouncements — The Company reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on its condensed consolidated financial statements.

XML

REVENUE

4 Months Ended

Jan. 21, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

Nature of products and services — The Company derives revenue from retail sales at Jack in the Box and Del Taco company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants.

Our franchise arrangements generally provide for an initial franchise fee per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees, as well as sourcing fees for Jack in the Box franchise agreements.

Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the quarter ended January 21, 2024 (in thousands):

	Jack in the Box		Del Taco		Total
Company restaurant sales	$	132,057	$	91,983	$	224,040
Franchise rental revenues	105,578		7,618		113,196
Franchise royalties	61,323		9,454		70,777
Marketing fees	61,220		7,731		68,951
Technology and sourcing fees	6,142		1,839		7,981
Franchise fees and other services	2,020		533		2,553
Total revenue	$	368,340	$	119,158	$	487,498

The following table disaggregates revenue by segment and primary source for the quarter ended January 22, 2023 (in thousands):

	Jack in the Box		Del Taco		Total
Company restaurant sales	$	126,142	$	144,049	$	270,191
Franchise rental revenues	106,096		2,734		108,830
Franchise royalties	67,569		6,934		74,503
Marketing fees	60,344		5,654		65,998
Technology and sourcing fees	4,969		718		5,687
Franchise fees and other services	1,797		90		1,887
Total revenue	$	366,917	$	160,179	$	527,096

In October 2022, a Jack in the Box franchise operator paid the Company $7.3 million in order to sell his restaurants to a new franchisee at the current standard royalty rate, which is lower than the royalty rate in the existing franchise agreements. The payment represented the difference between the existing royalty rate and the new royalty rate based on projected future sales for the remaining term of the existing agreements. The payment was non-refundable and not subject to any adjustments based on actual future sales. The Company determined the transaction represented the termination of the existing agreement rather than the transfer of an agreement between franchisees. As such, the $7.3 million was recognized in franchise royalty revenue during the first quarter of 2023.

Contract liabilities — Contract liabilities consist of deferred revenue resulting from initial franchise and development fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. The Company classifies these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets.

A summary of significant changes in contract liabilities is presented below (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Deferred franchise and development fees at beginning of period	$	50,474	$	46,449
Revenue recognized	(1,988)		(1,639)
Additions	1,597		2,240
Deferred franchise and development fees at end of period	$	50,083	$	47,050

As of January 21, 2024, approximately $8.0 million of development fees related to unopened restaurants are included in deferred revenue. Timing of revenue recognition for development fees related to unopened restaurants is dependent upon the timing of restaurant openings and are recognized over the franchise term at the date of opening.

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 21, 2024 (in thousands):

Remainder of 2024	$	3,626
2025	5,052
2026	4,721
2027	4,377
2028	3,748
Thereafter	20,570
	$	42,094

The Company has applied the optional exemption, as provided for under ASC Topic 606, Revenue from Contracts with Customers, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

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SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE

4 Months Ended

Jan. 21, 2024

Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract]

SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE

SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE

Refranchisings — The following table summarizes the number of restaurants sold to franchisees and the loss or gain recognized (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Restaurants sold to Jack in the Box franchisees	—		5
Restaurants sold to Del Taco franchisees	—		16
Proceeds from the sale of company-operated restaurants (1)	$	1,739	$	17,609
Net assets sold (primarily property and equipment)	—		(4,093)
Goodwill related to the sale of company-operated restaurants	—		(7,310)
Franchise fees	—		(577)
Sublease liabilities, net	—		(1,197)
Lease termination	—		(393)
Other (2)	(1,993)		(214)
(Loss) gain on the sale of company-operated restaurants	$	(254)	$	3,825

____________________________

(1)Amount in 2024 relates to additional proceeds received in connection with the extension of franchise agreements and the resolution of certain contingencies related to the sale of restaurants in the prior years.

(2)Amount in 2024 includes a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction that is expected to close in the second quarter of 2024. Amount in 2023 includes $0.2 million related to prior year refranchising transactions.

Assets held for sale — Assets classified as held for sale on our condensed consolidated balance sheets as of January 21, 2024 and October 1, 2023 have carrying amounts of $23.7 million and $13.9 million, respectively. These amounts relate to i) company-owned restaurants to be refranchised, ii) operating restaurant properties which we intend to sell to franchisees and/or sell and leaseback with a third party, and iii) closed restaurant properties which we are marketing for sale.

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FRANCHISE ACQUISITIONS

4 Months Ended

Jan. 21, 2024

Business Combination and Asset Acquisition [Abstract]

FRANCHISE ACQUISTIONS

FRANCHISE ACQUISITIONS

Franchise acquisitions — During the first quarter of 2024, the Company acquired 9 Del Taco franchise restaurants for $86 thousand as part of two separate transactions, and recognized related gains of $2.4 million. This amount is recorded in “Other operating expenses (income), net” in the accompanying condensed consolidated statements of earnings. For further information, see Note 8, Other operating expenses (income), net, below in the notes to the condensed consolidated financial statement. The following table summarizes the number of restaurants acquired from franchisees and the gains recognized (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024
Restaurants acquired from Jack in the Box franchisees	—
Restaurants acquired from Del Taco franchisees	9
Purchase price (1)	$	(86)
Closing and acquisition costs	(43)
Property and equipment	3,612
Intangible assets	167
Operating lease right-of-use assets	3,211
Operating lease liabilities	(4,505)
Gain on the acquisition of franchise-operated restaurants	$	2,357

____________________________

(1)Comprised of outstanding receivables from franchisee forgiven upon acquisition.

During the first quarter of 2023, the Company did not acquire any Jack in the Box or Del Taco franchise restaurants.

We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3).

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GOODWILL AND INTANGIBLE ASSETS, NET

4 Months Ended

Jan. 21, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

GOODWILL AND INTANGIBLE ASSETS, NET

The changes in the carrying amount of goodwill during the quarter ended January 21, 2024 was as follows (in thousands):

	Jack in the Box		Del Taco		Total
Balance at October 1, 2023	$	136,027	$	193,959	$	329,986
Reclassified to assets held for sale	—		(403)		(403)
Balance at January 21, 2024	$	136,027	$	193,556	$	329,583

The net carrying amounts of intangible assets other than goodwill with definite lives are as follows (in thousands):

	January 21, 2024						October 1, 2023
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Definite-lived intangible assets:
Sublease assets	$	2,671	$	(455)	$	2,216	$	2,671	$	(381)	$	2,290
Franchise contracts	9,700		(1,016)		8,684		9,700		(850)		8,850
Reacquired franchise rights	464		(113)		351		297		(107)		190
	$	12,835	$	(1,584)	$	11,251	$	12,668	$	(1,338)	$	11,330
Indefinite-lived intangible assets:
Del Taco trademark	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500
	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500

The following table summarizes, as of January 21, 2024, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):

Remainder of 2024	$	569
2025	816
2026	814
2027	827
2028	772
Thereafter	7,453
	$	11,251

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LEASES

4 Months Ended

Jan. 21, 2024

Leases [Abstract]

LEASES

LEASES

Nature of leases — The Company owns restaurant sites and also leases restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance, and common area maintenance, which are excluded from the measurement of the lease liability.

As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees in connection with refranchising transactions. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying condensed consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.”

The following table presents rental income (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Operating lease income - franchise	$	78,249	$	73,520
Variable lease income - franchise	34,598		35,235
Amortization of sublease assets and liabilities, net	349		75
Franchise rental revenues	$	113,196	$	108,830
Operating lease income - closed restaurants and other (1)	$	2,312	$	2,240

____________________________

(1)Primarily relates to closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings.

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FAIR VALUE MEASUREMENTS

4 Months Ended

Jan. 21, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Financial assets and liabilities — The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (2) (Level 1)		Significant Other Observable Inputs (2) (Level 2)		Significant Unobservable Inputs (2) (Level 3)
Fair value measurements as of January 21, 2024:
Non-qualified deferred compensation plan (1)	$	17,798	$	17,798	$	—	$	—
Total liabilities at fair value	$	17,798	$	17,798	$	—	$	—
Fair value measurements as of October 1, 2023:
Non-qualified deferred compensation plan (1)	$	15,051	$	15,051	$	—	$	—
Total liabilities at fair value	$	15,051	$	15,051	$	—	$	—

____________________________

(1)The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets.

(2)The Company did not have any transfers in or out of Level 1, 2 or 3.

The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of January 21, 2024 and October 1, 2023 (in thousands):

	January 21, 2024				October 1, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Series 2019 Class A-2 Notes	$	705,063	$	663,488	$	706,875	$	640,046
Series 2022 Class A-2 Notes	$	1,061,500	$	942,028	$	1,067,000	$	903,056

The fair value of the Class A-2 Notes was estimated using Level 2 inputs based on quoted market prices in markets that are not considered active markets.

Non-financial assets and liabilities — The Company’s non-financial instruments, which primarily consist of property and equipment, operating lease right-of-use assets, goodwill and intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on an annual basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value.

In connection with our impairment reviews performed during 2024, the Company impaired certain Del Taco assets held for sale. For further information, see Note 3, Summary of Refranchisings and Assets Held For Sale, in the notes to the condensed consolidated financial statements.

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OTHER OPERATING (INCOME) EXPENSES, NET

4 Months Ended

Jan. 21, 2024

Restructuring and Related Activities [Abstract]

OTHER OPERATING EXPENSE, NET

OTHER OPERATING EXPENSES (INCOME), NET

Other operating expenses (income), net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Acquisition, integration, and strategic initiatives (1)	$	5,621	$	1,651
Costs of closed restaurants and other (2)	858		2,589
Accelerated depreciation	37		268
Gains on acquisition of restaurants (3)	(2,357)		—
Losses (gains) on disposition of property and equipment, net (4)	1,011		(10,009)
	$	5,170	$	(5,501)

____________________________

(1)Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees.

(2)Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants.

(3)Relates to the gains on acquisition of 9 Del Taco restaurants.

(4)In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale.

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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.

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INCOME TAXES

4 Months Ended

Jan. 21, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The income tax provisions reflect a year-to-date effective tax rate of 26.9% in 2024, as compared to 26.7% in fiscal year 2023. The major component of the year-over-year increase in tax rates was an increase in the impact of non-deductible officers’ compensation.

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RETIREMENT PLANS

4 Months Ended

Jan. 21, 2024

Retirement Benefits [Abstract]

RETIREMENT PLANS

RETIREMENT PLANS

Defined benefit pension plans — The Company sponsors two defined benefit pension plans, a frozen “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. Benefits under both plans are based on the employee’s years of service and compensation over defined periods of employment.

Post-retirement healthcare plans — The Company also sponsors two healthcare plans, closed to new participants, that provide post-retirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and they contain other cost-sharing features such as deductibles and coinsurance.

Net periodic benefit cost (credit) — The components of net periodic benefit cost (credit) in each period were as follows (in thousands): 

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Defined benefit pension plans:
Interest cost	$	5,839	$	5,913
Expected return on plan assets	(4,609)		(4,648)
Actuarial losses (1)	933		944
Amortization of unrecognized prior service costs (1)	5		6
Net periodic benefit cost	$	2,168	$	2,215
Post-retirement healthcare plans:
Interest cost	$	219	$	215
Actuarial gains (1)	(281)		(286)
Net periodic benefit credit	$	(62)	$	(71)

____________________________

(1)Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.”

Future cash flows — The Company’s policy is to fund our plans at or above the minimum required by law. As of the date of our last actuarial funding valuation, there was no minimum contribution funding requirement for the Qualified Plan. Details regarding 2024 contributions are as follows (in thousands):

	SERP		Post-Retirement Healthcare Plans
Net year-to-date contributions	$	1,310	$	388
Remaining estimated net contributions during fiscal 2024	$	3,828	$	717

The Company continues to evaluate contributions to our Qualified Plan based on changes in pension assets as a result of asset performance in the current market and the economic environment. The Company does not anticipate making any contributions to our Qualified Plan in fiscal 2024.

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STOCKHOLDERS EQUITY AND REPURCHAES OF COMMON STOCK

4 Months Ended

Jan. 21, 2024

Stockholders' Equity Note [Abstract]

STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK

STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK

Repurchases of common stock — The Company repurchased 0.3 million shares of its common stock in the first quarter of fiscal 2024 for an aggregate cost of $25.2 million, including applicable excise tax. As of January 21, 2024, there was $225.0 million remaining under share repurchase programs authorized by the Board of Directors which do not expire.

Dividends — During the first quarter of fiscal 2024, the Board of Directors declared a cash dividend of $0.44 per common share totaling $8.7 million. Future dividends are subject to approval by our Board of Directors.

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AVERAGE SHARES OUTSTANDING

4 Months Ended

Jan. 21, 2024

Weighted Average Number of Shares Outstanding, Diluted [Abstract]

AVERAGE SHARES OUTSTANDING

AVERAGE SHARES OUTSTANDING

The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):

	Sixteen Weeks Ended
	January 21, 2024	January 22, 2023
Weighted-average shares outstanding – basic	19,893	20,921
Effect of potentially dilutive securities:
Nonvested stock awards and units	145	79
Performance share awards	13	—
Weighted-average shares outstanding – diluted	20,051	21,000
Excluded from diluted weighted-average shares outstanding:
Antidilutive	24	23
Performance conditions not satisfied at the end of the period	136	112

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COMMITMENTS AND CONTINGENCIES

4 Months Ended

Jan. 21, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Legal matters — The Company assesses contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of January 21, 2024, the Company had accruals of $15.4 million for all of its legal matters in aggregate, presented within “Accrued liabilities” on our consolidated balance sheet. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. The Company regularly reviews contingencies to determine the adequacy of the accruals and related disclosures. The ultimate amount of loss may differ from these estimates. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure and the ultimate amount of loss may differ materially from these estimates in the near term.

Gessele v. Jack in the Box Inc. — In August 2010, five former Jack in the Box employees instituted litigation in federal court in Oregon alleging claims under the federal Fair Labor Standards Act and Oregon wage and hour laws. The plaintiffs alleged that Jack in the Box failed to pay non-exempt employees for certain meal breaks and improperly made payroll deductions for shoe purchases and for workers’ compensation expenses, and later added additional claims relating to timing of final pay and related wage and hour claims involving employees of a franchisee. In 2016, the court dismissed the federal claims and those relating to franchise employees. In June 2017, the court granted class certification with respect to state law claims of improper deductions and late payment of final wages. The parties participated in a voluntary mediation on March 16, 2020, but the matter did not settle. On October 24, 2022, a jury awarded plaintiffs approximately $6.4 million in damages and penalties. The Company continues to dispute liability and the damage award and will defend against both through post-trial motions and all other available appellate remedies. As of January 21, 2024, the Company has accrued the verdict amount above, as well as estimated pre-judgment and post-judgment interest and an estimated fee award, for an additional $8.6 million. These amounts are included within “Accrued liabilities” on our condensed consolidated balance sheet. The Company will continue to accrue for post-judgment interest until the matter is resolved.

Torrez — In March 2014, a former Del Taco employee filed a purported Private Attorneys General Act claim and class action alleging various causes of action under California’s labor, wage, and hour laws. The plaintiff generally alleges Del Taco did not appropriately provide meal and rest breaks and failed to pay wages and reimburse business expenses to its California non-exempt employees. On November 12, 2021, the court granted, in part, the plaintiff's motion for class certification. The parties participated in voluntary mediation on May 24, 2022 and June 3, 2022. On June 4, 2022, we entered into a Settlement Memorandum of Understanding which obligated the Company to pay a gross settlement amount of $50.0 million, for which in exchange we will be released from all claims by the parties. On August 8, 2023, the court issued its final approval of the settlement and on August 9, 2023 final judgement was entered. The Company made its first payment of half of the settlement amount on August 28, 2023. Payment of the second half was made on November 27, 2023. As of January 21, 2024, the Company does not have any further amounts accrued on our condensed consolidated balance sheet for this matter.

J&D Restaurant Group — On April 17, 2019, the trustee for a bankrupt former franchisee filed a complaint generally alleging the Company wrongfully terminated the franchise agreements and unreasonably denied two perspective purchasers the former franchisee presented. The parties participated in a mediation in April 2021, and again in December 2022, but the matter did not settle. Trial commenced on January 9, 2023. On February 8, 2023, the jury returned a verdict finding the Company had not breached any contracts in terminating the franchise agreements or denying the proposed buyers. However, while the jury also found the Company had not violated the California Unfair Practices Act, it found for the plaintiff on the claim for breach of implied covenant of good faith and fair dealing, and awarded $8.0 million in damages. On May 9, 2023, the court granted the Company’s post-trial motion, overturning the jury verdict and ordering the plaintiff take nothing on its claims. As a result, the Company reversed the prior $8.0 million accrual, and as of January 21, 2024, the Company has no amounts accrued for this case on its condensed consolidated balance sheet. The Plaintiff has appealed the trial court’s post-trial rulings.

Other legal matters — In addition to the matters described above, we are subject to normal and routine litigation brought by former or current employees, customers, franchisees, vendors, landlords, shareholders, or others. We intend to defend ourselves in any such matters. Some of these matters may be covered, at least in part, by insurance or other third-party indemnity obligation. We record receivables from third party insurers when recovery has been determined to be probable.

Lease guarantees — We remain contingently liable for certain leases relating to our former Qdoba business which we sold in fiscal 2018. Under the Qdoba Purchase Agreement, the buyer has indemnified the Company of all claims related to these guarantees. As of January 21, 2024, the maximum potential liability of future undiscounted payments under these leases is approximately $21.8 million. The lease terms extend for a maximum of approximately 14 more years and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event of default, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. The Company has not recorded a liability for these guarantees as we believe the likelihood of making any future payments is remote.

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SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION

4 Months Ended

Jan. 21, 2024

Supplemental Cash Flow Information [Abstract]

SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION

SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands)

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Non-cash investing and financing transactions:
Decrease in obligations for purchases of property and equipment	$	6,053	$	4,147
Increase in dividends accrued or converted to common stock equivalents	$	74	$	68
Right-of use assets obtained in exchange for operating lease obligations	$	70,583	$	54,246

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SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION

4 Months Ended

Jan. 21, 2024

Balance Sheet Related Disclosures [Abstract]

SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION

SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (in thousands)

	January 21, 2024		October 1, 2023
Accounts and other receivables, net:
Trade	$	56,099	$	93,660
Notes receivable, current portion	2,262		2,262
Income tax receivable	755		949
Other	8,302		6,953
Allowance for doubtful accounts	(4,167)		(4,146)
	$	63,251	$	99,678
Property and equipment, net
Land	$	94,151	$	92,007
Buildings	971,656		968,221
Restaurant and other equipment	162,496		166,714
Construction in progress	33,020		31,647
	1,261,323		1,258,589
Less accumulated depreciation and amortization	(845,375)		(846,559)
	$	415,948	$	412,030
Other assets, net:
Company-owned life insurance policies	$	119,366	$	113,205
Deferred rent receivable	41,538		41,947
Franchise tenant improvement allowance	44,381		43,590
Notes receivable, less current portion	11,406		11,927
Other	30,357		30,038
	$	247,048	$	240,707
Accrued liabilities:
Legal accruals	$	15,350	$	40,877
Income tax liabilities	796		58,155
Payroll and related taxes	32,962		49,521
Insurance	30,854		31,349
Sales and property taxes	25,936		30,508
Deferred rent income	5,500		19,397
Advertising	5,160		15,597
Deferred franchise and development fees	5,998		5,952
Other	45,232		50,822
	$	167,788	$	302,178
Other long-term liabilities:
Defined benefit pension plans	$	48,045	$	48,375
Deferred franchise and development fees	44,082		44,522
Other	51,745		50,226
	$	143,872	$	143,123

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SUBSEQUENT EVENTS

4 Months Ended

Jan. 21, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Refranchising — Subsequent to the end of the first quarter of 2024, the Company signed an agreement to refranchise 13 restaurants in Atlanta.

Dividends — On February 16, 2024, the Board of Directors declared a cash dividend of $0.44 per common share, to be paid on March 27, 2024, to shareholders of record as of the close of business on March 15, 2024.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Pay vs Performance Disclosure
Net earnings	$ 38,683	$ 53,254

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Insider Trading Arrangements	4 Months Ended
	Jan. 21, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

BASIS OF PRESENTATION (Policies)

4 Months Ended

Jan. 21, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of operations

Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box® and Del Taco® restaurant brands.

Basis of presentation

Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”).

These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2023 (“2023 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2023 Form 10-K.

In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year.

Fiscal year

Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Fiscal years 2024 and 2023 include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2024 and 2023 refer to the 16 weeks (“quarter”) and 16 weeks (year-to-date”) ended January 21, 2024 and January 22, 2023, respectively, unless otherwise indicated.

Use of estimates

Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.

Advertising costs

Advertising costs — The Company administers marketing funds at each of its restaurant brands that include contractual contributions. In 2024 and 2023, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales, and marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0% of sales. Year-to-date incremental contributions made by the Company for both brands were $0.2 million and less than $0.1 million in 2024 and 2023, respectively.

Total contributions made by the Company are included in “Selling, general, and administrative expenses” in the accompanying condensed consolidated statements of earnings and for the quarter totaled $10.4 million and $12.2 million in 2024 and 2023, respectively.

Allowance for credit losses

Allowance for credit losses — The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased.

Business combinations

Business combinations — The Company accounts for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill.

Recent accounting pronouncements

Recent accounting pronouncements — The Company reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact on its condensed consolidated financial statements.

Goodwill and Intangible Assets, Policy

Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit prior to the disposal. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off.

Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. The Company’s two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment by determining whether the fair value of our reporting units exceed their carrying values.

The Company tests goodwill and indefinite-lived intangible assets for impairment annually, or more frequently if events and circumstances warrant. The Company performs this testing during the third quarter of each year.

Our impairment analyses first includes a qualitative assessment to determine whether events or circumstances indicate that it is more likely than not that the fair value of the reporting unit is less than its carrying value. Significant factors considered in this assessment include, but are not limited to, macro-economic conditions, market and industry conditions, cost considerations, the competitive environment, share price fluctuations, overall financial performance, and results of past impairment tests. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying value, we perform a quantitative impairment test.

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BASIS OF PRESENTATION (Tables)

4 Months Ended

Jan. 21, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Allowance for Doubtful Accounts

The following table summarizes the activity in the allowance for doubtful accounts (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Balance as of beginning of period	$	(4,146)	$	(5,975)
(Provision) reversal for expected credit losses	(21)		1,445
Balance as of end of period	$	(4,167)	$	(4,530)

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REVENUE (Tables)

4 Months Ended

Jan. 21, 2024

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the quarter ended January 21, 2024 (in thousands):

	Jack in the Box		Del Taco		Total
Company restaurant sales	$	132,057	$	91,983	$	224,040
Franchise rental revenues	105,578		7,618		113,196
Franchise royalties	61,323		9,454		70,777
Marketing fees	61,220		7,731		68,951
Technology and sourcing fees	6,142		1,839		7,981
Franchise fees and other services	2,020		533		2,553
Total revenue	$	368,340	$	119,158	$	487,498

The following table disaggregates revenue by segment and primary source for the quarter ended January 22, 2023 (in thousands):

	Jack in the Box		Del Taco		Total
Company restaurant sales	$	126,142	$	144,049	$	270,191
Franchise rental revenues	106,096		2,734		108,830
Franchise royalties	67,569		6,934		74,503
Marketing fees	60,344		5,654		65,998
Technology and sourcing fees	4,969		718		5,687
Franchise fees and other services	1,797		90		1,887
Total revenue	$	366,917	$	160,179	$	527,096

Changes in Contract Liabilities

A summary of significant changes in contract liabilities is presented below (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Deferred franchise and development fees at beginning of period	$	50,474	$	46,449
Revenue recognized	(1,988)		(1,639)
Additions	1,597		2,240
Deferred franchise and development fees at end of period	$	50,083	$	47,050

Remaining Performance Obligation, Expected Timing of Satisfaction

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 21, 2024 (in thousands):

Remainder of 2024	$	3,626
2025	5,052
2026	4,721
2027	4,377
2028	3,748
Thereafter	20,570
	$	42,094

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SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE (Tables)

4 Months Ended

Jan. 21, 2024

Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract]

Schedule of Refranchisings and Franchise Acquisitions

The following table summarizes the number of restaurants sold to franchisees and the loss or gain recognized (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Restaurants sold to Jack in the Box franchisees	—		5
Restaurants sold to Del Taco franchisees	—		16
Proceeds from the sale of company-operated restaurants (1)	$	1,739	$	17,609
Net assets sold (primarily property and equipment)	—		(4,093)
Goodwill related to the sale of company-operated restaurants	—		(7,310)
Franchise fees	—		(577)
Sublease liabilities, net	—		(1,197)
Lease termination	—		(393)
Other (2)	(1,993)		(214)
(Loss) gain on the sale of company-operated restaurants	$	(254)	$	3,825

____________________________

(1)Amount in 2024 relates to additional proceeds received in connection with the extension of franchise agreements and the resolution of certain contingencies related to the sale of restaurants in the prior years.

(2)Amount in 2024 includes a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction that is expected to close in the second quarter of 2024. Amount in 2023 includes $0.2 million related to prior year refranchising transactions.

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FRANCHISE ACQUISITIONS (Tables)

4 Months Ended

Jan. 21, 2024

Business Combination and Asset Acquisition [Abstract]

Summary of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the number of restaurants acquired from franchisees and the gains recognized (dollars in thousands):

	Sixteen Weeks Ended
	January 21, 2024
Restaurants acquired from Jack in the Box franchisees	—
Restaurants acquired from Del Taco franchisees	9
Purchase price (1)	$	(86)
Closing and acquisition costs	(43)
Property and equipment	3,612
Intangible assets	167
Operating lease right-of-use assets	3,211
Operating lease liabilities	(4,505)
Gain on the acquisition of franchise-operated restaurants	$	2,357

____________________________

(1)Comprised of outstanding receivables from franchisee forgiven upon acquisition.

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GOODWILL AND INTANGIBLE ASSETS, NET (Tables)

4 Months Ended

Jan. 21, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill during the quarter ended January 21, 2024 was as follows (in thousands):

	Jack in the Box		Del Taco		Total
Balance at October 1, 2023	$	136,027	$	193,959	$	329,986
Reclassified to assets held for sale	—		(403)		(403)
Balance at January 21, 2024	$	136,027	$	193,556	$	329,583

Schedule of Intangible Assets

The net carrying amounts of intangible assets other than goodwill with definite lives are as follows (in thousands):

	January 21, 2024						October 1, 2023
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Definite-lived intangible assets:
Sublease assets	$	2,671	$	(455)	$	2,216	$	2,671	$	(381)	$	2,290
Franchise contracts	9,700		(1,016)		8,684		9,700		(850)		8,850
Reacquired franchise rights	464		(113)		351		297		(107)		190
	$	12,835	$	(1,584)	$	11,251	$	12,668	$	(1,338)	$	11,330
Indefinite-lived intangible assets:
Del Taco trademark	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500
	$	283,500	$	—	$	283,500	$	283,500	$	—	$	283,500

Schedule of the Estimated Amortization Expense

The following table summarizes, as of January 21, 2024, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):

Remainder of 2024	$	569
2025	816
2026	814
2027	827
2028	772
Thereafter	7,453
	$	11,251

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LEASES (Tables)

4 Months Ended

Jan. 21, 2024

Leases [Abstract]

Lease Income

The following table presents rental income (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Operating lease income - franchise	$	78,249	$	73,520
Variable lease income - franchise	34,598		35,235
Amortization of sublease assets and liabilities, net	349		75
Franchise rental revenues	$	113,196	$	108,830
Operating lease income - closed restaurants and other (1)	$	2,312	$	2,240

____________________________

(1)Primarily relates to closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings.

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FAIR VALUE MEASUREMENTS (Tables)

4 Months Ended

Jan. 21, 2024

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents our financial assets and liabilities measured at fair value on a recurring basis (in thousands):

	Total		Quoted Prices in Active Markets for Identical Assets (2) (Level 1)		Significant Other Observable Inputs (2) (Level 2)		Significant Unobservable Inputs (2) (Level 3)
Fair value measurements as of January 21, 2024:
Non-qualified deferred compensation plan (1)	$	17,798	$	17,798	$	—	$	—
Total liabilities at fair value	$	17,798	$	17,798	$	—	$	—
Fair value measurements as of October 1, 2023:
Non-qualified deferred compensation plan (1)	$	15,051	$	15,051	$	—	$	—
Total liabilities at fair value	$	15,051	$	15,051	$	—	$	—

____________________________

(1)The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets.

(2)The Company did not have any transfers in or out of Level 1, 2 or 3.

Carrying Value and Estimated Fair Value of Notes

The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of January 21, 2024 and October 1, 2023 (in thousands):

	January 21, 2024				October 1, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Series 2019 Class A-2 Notes	$	705,063	$	663,488	$	706,875	$	640,046
Series 2022 Class A-2 Notes	$	1,061,500	$	942,028	$	1,067,000	$	903,056

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OTHER OPERATING (INCOME) EXPENSES, NET (Tables)

4 Months Ended

Jan. 21, 2024

Restructuring and Related Activities [Abstract]

Impairment, Disposition of Property and Equipment, Restaurant Closing Costs and Restructuring

Other operating expenses (income), net in the accompanying condensed consolidated statements of earnings is comprised of the following (in thousands):

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Acquisition, integration, and strategic initiatives (1)	$	5,621	$	1,651
Costs of closed restaurants and other (2)	858		2,589
Accelerated depreciation	37		268
Gains on acquisition of restaurants (3)	(2,357)		—
Losses (gains) on disposition of property and equipment, net (4)	1,011		(10,009)
	$	5,170	$	(5,501)

____________________________

(1)Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees.

(2)Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants.

(3)Relates to the gains on acquisition of 9 Del Taco restaurants.

(4)In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale.

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SEGMENT REPORTING (Tables)

4 Months Ended

Jan. 21, 2024

Segment Reporting [Abstract]

Schedule of Operating Segments

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

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RETIREMENT PLANS (Tables)

4 Months Ended

Jan. 21, 2024

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost (credit) in each period were as follows (in thousands): 

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Defined benefit pension plans:
Interest cost	$	5,839	$	5,913
Expected return on plan assets	(4,609)		(4,648)
Actuarial losses (1)	933		944
Amortization of unrecognized prior service costs (1)	5		6
Net periodic benefit cost	$	2,168	$	2,215
Post-retirement healthcare plans:
Interest cost	$	219	$	215
Actuarial gains (1)	(281)		(286)
Net periodic benefit credit	$	(62)	$	(71)

____________________________

(1)Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.”

Schedule of Defined Benefit Plan Contribution

Details regarding 2024 contributions are as follows (in thousands):

	SERP		Post-Retirement Healthcare Plans
Net year-to-date contributions	$	1,310	$	388
Remaining estimated net contributions during fiscal 2024	$	3,828	$	717

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AVERAGE SHARES OUTSTANDING (Tables)

4 Months Ended

Jan. 21, 2024

Weighted Average Number of Shares Outstanding, Diluted [Abstract]

Reconciliation Of Basic Weighted-Average Shares Outstanding To Diluted Weighted-Average Shares Outstanding

The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding (in thousands):

	Sixteen Weeks Ended
	January 21, 2024	January 22, 2023
Weighted-average shares outstanding – basic	19,893	20,921
Effect of potentially dilutive securities:
Nonvested stock awards and units	145	79
Performance share awards	13	—
Weighted-average shares outstanding – diluted	20,051	21,000
Excluded from diluted weighted-average shares outstanding:
Antidilutive	24	23
Performance conditions not satisfied at the end of the period	136	112

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SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (Tables)

4 Months Ended

Jan. 21, 2024

Supplemental Cash Flow Information [Abstract]

Additional Information Related To Cash Flows

	Sixteen Weeks Ended
	January 21, 2024		January 22, 2023
Non-cash investing and financing transactions:
Decrease in obligations for purchases of property and equipment	$	6,053	$	4,147
Increase in dividends accrued or converted to common stock equivalents	$	74	$	68
Right-of use assets obtained in exchange for operating lease obligations	$	70,583	$	54,246

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SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (Tables)

4 Months Ended

Jan. 21, 2024

Balance Sheet Related Disclosures [Abstract]

Schedule of Supplemental Balance Sheet Disclosures

	January 21, 2024		October 1, 2023
Accounts and other receivables, net:
Trade	$	56,099	$	93,660
Notes receivable, current portion	2,262		2,262
Income tax receivable	755		949
Other	8,302		6,953
Allowance for doubtful accounts	(4,167)		(4,146)
	$	63,251	$	99,678
Property and equipment, net
Land	$	94,151	$	92,007
Buildings	971,656		968,221
Restaurant and other equipment	162,496		166,714
Construction in progress	33,020		31,647
	1,261,323		1,258,589
Less accumulated depreciation and amortization	(845,375)		(846,559)
	$	415,948	$	412,030
Other assets, net:
Company-owned life insurance policies	$	119,366	$	113,205
Deferred rent receivable	41,538		41,947
Franchise tenant improvement allowance	44,381		43,590
Notes receivable, less current portion	11,406		11,927
Other	30,357		30,038
	$	247,048	$	240,707
Accrued liabilities:
Legal accruals	$	15,350	$	40,877
Income tax liabilities	796		58,155
Payroll and related taxes	32,962		49,521
Insurance	30,854		31,349
Sales and property taxes	25,936		30,508
Deferred rent income	5,500		19,397
Advertising	5,160		15,597
Deferred franchise and development fees	5,998		5,952
Other	45,232		50,822
	$	167,788	$	302,178
Other long-term liabilities:
Defined benefit pension plans	$	48,045	$	48,375
Deferred franchise and development fees	44,082		44,522
Other	51,745		50,226
	$	143,872	$	143,123

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BASIS OF PRESENTATION - Narrative (Details) $ in Millions	4 Months Ended
	Jan. 21, 2024 USD ($) restaurant reporting_unit segment	Jan. 22, 2023 USD ($)
Net Investment Income [Line Items]
Number of operating segments | segment	2
Contractual obligation | $	$ 0.2	$ 0.1
Marketing and advertising expense | $	$ 10.4	$ 12.2
Number of reporting units | reporting_unit	2
Jack in the Box restaurant operations
Net Investment Income [Line Items]
Contractual obligation (percent)	5.00%	5.00%
Del Taco
Net Investment Income [Line Items]
Contractual obligation (percent)	4.00%
Company operated | Jack in the Box restaurant operations
Net Investment Income [Line Items]
Number of operating segments	144
Company operated | Del Taco
Net Investment Income [Line Items]
Number of operating segments	179
Franchise-operated | Jack in the Box restaurant operations
Net Investment Income [Line Items]
Number of operating segments	2,048
Franchise-operated | Del Taco
Net Investment Income [Line Items]
Number of operating segments	413

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BASIS OF PRESENTATION - Effect of New Accounting Pronouncements (Details) - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Allowance for Credit Loss [Roll Forward]
Balance as of beginning of period	$ (4,146)	$ (5,975)
(Provision) reversal for expected credit losses	(21)	1,445
Balance as of end of period	$ (4,167)	$ (4,530)

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REVENUE - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	4 Months Ended
	Oct. 31, 2022	Jan. 21, 2024	Jan. 22, 2023
Disaggregation of Revenue [Line Items]
Term of franchise		20 years
Revenues		$ 487,498	$ 527,096
Development fees		8,000
Franchise royalties and other
Disaggregation of Revenue [Line Items]
Revenues		73,330	$ 76,390
Franchise Operator
Disaggregation of Revenue [Line Items]
Proceeds from sale of franchise	$ 7,300
Franchise Operator | Franchise royalties and other
Disaggregation of Revenue [Line Items]
Revenues		$ 7,300

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REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 487,498	$ 527,096
Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	368,340	366,917
Del Taco
Disaggregation of Revenue [Line Items]
Revenues	119,158	160,179
Company restaurant sales
Disaggregation of Revenue [Line Items]
Revenues	224,040	270,191
Company restaurant sales | Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	132,057	126,142
Company restaurant sales | Del Taco
Disaggregation of Revenue [Line Items]
Revenues	91,983	144,049
Franchise rental revenues
Disaggregation of Revenue [Line Items]
Revenues	113,196	108,830
Franchise rental revenues | Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	105,578	106,096
Franchise rental revenues | Del Taco
Disaggregation of Revenue [Line Items]
Revenues	7,618	2,734
Franchise royalties
Disaggregation of Revenue [Line Items]
Revenues	70,777	74,503
Franchise royalties | Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	61,323	67,569
Franchise royalties | Del Taco
Disaggregation of Revenue [Line Items]
Revenues	9,454	6,934
Marketing fees
Disaggregation of Revenue [Line Items]
Revenues	68,951	65,998
Marketing fees | Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	61,220	60,344
Marketing fees | Del Taco
Disaggregation of Revenue [Line Items]
Revenues	7,731	5,654
Technology and sourcing fees
Disaggregation of Revenue [Line Items]
Revenues	7,981	5,687
Technology and sourcing fees | Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	6,142	4,969
Technology and sourcing fees | Del Taco
Disaggregation of Revenue [Line Items]
Revenues	1,839	718
Franchise fees and other services
Disaggregation of Revenue [Line Items]
Revenues	2,553	1,887
Franchise fees and other services | Jack in the Box restaurant operations
Disaggregation of Revenue [Line Items]
Revenues	2,020	1,797
Franchise fees and other services | Del Taco
Disaggregation of Revenue [Line Items]
Revenues	$ 533	$ 90

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REVENUE - Changes in Contract Liabilities (Details) - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Movement in Deferred Revenue [Roll Forward]
Deferred franchise and development fees at beginning of period	$ 50,474	$ 46,449
Revenue recognized	(1,988)	(1,639)
Additions	1,597	2,240
Deferred franchise and development fees at end of period	$ 50,083	$ 47,050

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REVENUE - Estimated Future Franchise Fees (Details) $ in Thousands	Jan. 21, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 42,094
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-21
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	3,626
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-19
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	5,052
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-18
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	4,721
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-17
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	4,377
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-16
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	3,748
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-21
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 20,570

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REVENUE - Estimated Future Franchise Fees, Period (Details)	Jan. 21, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-21
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-19
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-18
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-17
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-16
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-21
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period

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SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE - Refranchisings (Details) $ in Thousands		4 Months Ended
		Jan. 21, 2024 USD ($) restaurant	Jan. 22, 2023 USD ($) restaurant
Franchisor Disclosure [Line Items]
(Loss) gain on the sale of company-operated restaurants	[1]	$ (1,011)	$ 10,009
Del Taco
Franchisor Disclosure [Line Items]
Operating restaurant impairment charges		2,200
Company operated
Franchisor Disclosure [Line Items]
Proceeds from the sale of company-operated restaurants	[2]	1,739	17,609
Net assets sold (primarily property and equipment)		0	(4,093)
Goodwill related to the sale of company-operated restaurants		0	(7,310)
Franchise fees		0	(577)
Sublease liabilities, net		0	(1,197)
Lease termination		0	(393)
Other	[3]	(1,993)	(214)
(Loss) gain on the sale of company-operated restaurants		$ (254)	$ 3,825
Company operated | Jack in the Box restaurant operations
Franchisor Disclosure [Line Items]
Refranchising agreements | restaurant		0	5
Company operated | Del Taco
Franchisor Disclosure [Line Items]
Refranchising agreements | restaurant		0	16

[1] In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale

[2] Amount in 2024 relates to additional proceeds received in connection with the extension of franchise agreements and the resolution of certain contingencies related to the sale of restaurants in the prior years.

[3] Amount in 2024 includes a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction that is expected to close in the second quarter of 2024. Amount in 2023 includes $0.2 million related to prior year refranchising transactions.

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SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE - Narrative (Details) - USD ($) $ in Thousands	Jan. 21, 2024	Oct. 01, 2023
Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract]
Current assets held for sale	$ 23,656	$ 13,925

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FRANCHISE ACQUISITIONS - Narrative (Details) $ in Thousands		4 Months Ended
		Jan. 21, 2024 USD ($) restaurants	Jan. 22, 2023 USD ($)
Asset Acquisition [Line Items]
Purchase price		$ 86
Gains on acquisition of restaurants	[1]	$ 2,357	$ 0
Del Taco
Asset Acquisition [Line Items]
Number of restaurants acquired from franchisees | restaurants		9

[1] gains on acquisition of 9 Del Taco restaurants.

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FRANCHISE ACQUISITIONS - Schedule of Assets and Liabilities Assumed (Details) $ in Thousands		4 Months Ended
		Jan. 21, 2024 USD ($) restaurants	Jan. 22, 2023 USD ($) restaurant
Asset Acquisition [Line Items]
Purchase price		$ (86)
Closing and acquisition costs		(43)
Property and equipment		3,612
Intangible assets		167
Operating lease right-of-use assets		3,211
Operating lease liabilities		(4,505)
Gains on acquisition of restaurants	[1]	$ 2,357	$ 0
Jack in the Box restaurant operations
Asset Acquisition [Line Items]
Number of restaurants acquired from franchisees		0	0
Del Taco
Asset Acquisition [Line Items]
Number of restaurants acquired from franchisees | restaurants		9

[1] gains on acquisition of 9 Del Taco restaurants.

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GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Carrying Amount of Goodwill - (Details) $ in Thousands	4 Months Ended
	Jan. 21, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 329,986
Reclassified to assets held for sale	(403)
Goodwill, ending balance	329,583
Jack in the Box restaurant operations
Goodwill [Roll Forward]
Goodwill, beginning balance	136,027
Goodwill, ending balance	136,027
Jack in the Box restaurant operations | Jack in the Box restaurant operations
Goodwill [Roll Forward]
Reclassified to assets held for sale	0
Del Taco
Goodwill [Roll Forward]
Goodwill, beginning balance	193,959
Goodwill, ending balance	193,556
Del Taco | Del Taco
Goodwill [Roll Forward]
Reclassified to assets held for sale	$ (403)

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GOODWILL AND INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jan. 21, 2024	Oct. 01, 2023
Definite-lived intangible assets:
Gross Amount	$ 12,835	$ 12,668
Accumulated Amortization	(1,584)	(1,338)
Net Amount	11,251	11,330
Indefinite-lived intangible assets:
Gross Amount	283,500	283,500
Sublease assets
Definite-lived intangible assets:
Gross Amount	2,671	2,671
Accumulated Amortization	(455)	(381)
Net Amount	2,216	2,290
Franchise contracts
Definite-lived intangible assets:
Gross Amount	9,700	9,700
Accumulated Amortization	(1,016)	(850)
Net Amount	8,684	8,850
Reacquired franchise rights
Definite-lived intangible assets:
Gross Amount	464	297
Accumulated Amortization	(113)	(107)
Net Amount	$ 351	$ 190

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GOODWILL AND INTANGIBLE ASSETS, NET - Amortization Expense (Details) $ in Thousands	Jan. 21, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 11,251
2025	816
2026	814
2027	827
2028	772
Finite-Lived Intangible Asset, Expected Amortization, After Year Four	7,453
Remainder of 2024	$ 569

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LEASES - Narrative (Details)	Jan. 21, 2024
Lessee, Lease, Description [Line Items]
Initial term of operating lease	20 years
Minimum
Lessee, Lease, Description [Line Items]
Renewal term of operating lease	1 year
Maximum
Lessee, Lease, Description [Line Items]
Renewal term of operating lease	20 years

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LEASES - Operating Lease Income (Details) - USD ($) $ in Thousands		4 Months Ended
		Jan. 21, 2024	Jan. 22, 2023
Lessor, Lease, Description [Line Items]
Amortization of sublease assets and liabilities, net		$ (124)	$ (541)
Operating lease income - closed restaurants and other	[1]	2,312	2,240
Franchise contracts
Lessor, Lease, Description [Line Items]
Operating lease income - franchise		78,249	73,520
Variable lease income - franchise		34,598	35,235
Amortization of sublease assets and liabilities, net		349	75
Franchise rental revenues		$ 113,196	$ 108,830

[1] Primarily relates to closed restaurant properties included in “Other operating expenses (income), net” in our condensed consolidated statements of earnings.

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FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands		Jan. 21, 2024	Oct. 01, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value		$ 17,798	$ 15,051
Quoted Prices In Active Markets For Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value		17,798	15,051
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value		0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value		0	0
Non Qualified Deferred Compensation Plan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	[1]	17,798	15,051
Non Qualified Deferred Compensation Plan | Quoted Prices In Active Markets For Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	[1]	17,798	15,051
Non Qualified Deferred Compensation Plan | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	[1]	0	0
Non Qualified Deferred Compensation Plan | Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total liabilities at fair value	[1]	$ 0	$ 0

[1] The Company maintains an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our condensed consolidated balance sheets.

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FAIR VALUE MEASUREMENTS - Carrying Value and Estimated Fair Value of Notes (Details) - Senior Notes - USD ($) $ in Thousands	Jan. 21, 2024	Oct. 01, 2023
Carrying Amount | Series 2019 Class A-2 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 705,063	$ 706,875
Carrying Amount | Series 2022 Class A-2 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	1,061,500	1,067,000
Fair Value | Series 2019 Class A-2 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	663,488	640,046
Fair Value | Series 2022 Class A-2 Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total debt	$ 942,028	$ 903,056

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OTHER OPERATING (INCOME) EXPENSES, NET - Summary of Impairment, Disposition of Property and Equipment, Restaurant Closing Costs and Restructuring (Details) - USD ($) $ in Thousands		4 Months Ended
		Jan. 21, 2024	Jan. 22, 2023
Restructuring and Related Activities [Abstract]
Acquisition, integration, and strategic initiatives	[1]	$ 5,621	$ 1,651
Costs of closed restaurants and other	[2]	858	2,589
Accelerated depreciation		37	268
Gains on acquisition of restaurants	[3]	(2,357)	0
Losses (gains) on disposition of property and equipment, net (4)	[4]	1,011	(10,009)
Impairment and other charges		$ 5,170	$ (5,501)

[1] Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees.

[2] Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of our decision to close restaurants.

[3] gains on acquisition of 9 Del Taco restaurants.

[4] In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2023, gains on disposition of property and equipment primarily related to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale

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SEGMENT REPORTING - Schedule of Operating Segments (Details) - USD ($) $ in Thousands		4 Months Ended
		Jan. 21, 2024	Jan. 22, 2023
Segment Reporting Information [Line Items]
Revenues		$ 487,498	$ 527,096
Depreciation and amortization		18,473	19,402
Acquisition, integration, and strategic initiatives	[1]	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]	2,357	0
Amortization of favorable and unfavorable leases and subleases, net		124	541
Earnings from operations		79,480	100,931
Jack in the Box restaurant operations
Segment Reporting Information [Line Items]
Revenues		368,340	366,917
Segment operating profit		116,043	128,780
Del Taco
Segment Reporting Information [Line Items]
Revenues		119,158	160,179
Segment operating profit		10,741	16,236
Corporate Segment
Segment Reporting Information [Line Items]
Segment operating profit		$ (25,203)	$ (28,506)

[1] Acquisition, integration, and strategic initiatives are related to the acquisition and integration of Del Taco, as well as strategic consulting fees.

[2] gains on acquisition of 9 Del Taco restaurants.

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INCOME TAXES- Narrative (Details)	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Income Tax Disclosure [Abstract]
Effective income tax rates	26.90%	26.70%

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RETIREMENT PLANS - Narrative (Details)	4 Months Ended
	Jan. 21, 2024 definedBenefitPensionPlan healthcarePlan	Jan. 01, 2022 USD ($)
Retirement Benefits [Abstract]
Number of sponsored defined benefit pension plans | definedBenefitPensionPlan	2
Number of postretirement health care plans | healthcarePlan	2
Minimum required contribution for retirement plans | $		$ 0

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RETIREMENT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands		4 Months Ended
		Jan. 21, 2024	Jan. 22, 2023
Pension Plan
Defined Benefit Plan Disclosure [Line Items]
Interest cost		$ 5,839	$ 5,913
Expected return on plan assets		(4,609)	(4,648)
Actuarial losses (gains)	[1]	933	944
Amortization of unrecognized prior service costs	[1]	5	6
Net periodic benefit cost		2,168	2,215
Post-Retirement Healthcare Plans
Defined Benefit Plan Disclosure [Line Items]
Interest cost		219	215
Actuarial losses (gains)	[1]	(281)	(286)
Net periodic benefit cost		$ (62)	$ (71)

[1] Amounts were reclassified from accumulated other comprehensive income into net earnings as a component of “Other pension and post-retirement expenses, net.”

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RETIREMENT PLANS - Schedule of Future Cash Flows (Details) $ in Thousands	4 Months Ended
	Jan. 21, 2024 USD ($)
SERP
Defined Benefit Plan Disclosure [Line Items]
Net year-to-date contributions	$ 1,310
Remaining estimated net contributions during fiscal 2024	3,828
Post-Retirement Healthcare Plans
Defined Benefit Plan Disclosure [Line Items]
Net year-to-date contributions	388
Remaining estimated net contributions during fiscal 2024	$ 717

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STOCKHOLDERS EQUITY AND REPURCHASES OF COMMON STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Stockholders' Equity Note [Abstract]
Shares repurchased (in shares)	300,000
Value of shares repurchased	$ 25,166	$ 14,999
Repurchase of common stock, remaining authorized amount	$ 225,000
Cash dividend (in USD per share)	$ 0.44	$ 0.44
Total cash dividends	$ 8,700

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AVERAGE SHARES OUTSTANDING - Reconciliation of Basic Weighted-Average Shares Outstanding to Diluted Weighted-Average Shares Outstanding (Details) - shares shares in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Average Shares Outstanding [Line Items]
Weighted-average shares outstanding - basic (in shares)	19,893	20,921
Weighted-average number of shares outstanding - diluted (in shares)	20,051	21,000
Excluded from diluted weighted-average shares outstanding:
Antidilutive (in shares)	24	23
Performance conditions not satisfied at the end of the period (in shares)	136	112
Nonvested stock awards and units
Average Shares Outstanding [Line Items]
Effect of potentially dilutive securities (in shares)	145	79
Performance share awards
Average Shares Outstanding [Line Items]
Effect of potentially dilutive securities (in shares)	13	0

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COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions					1 Months Ended
	Feb. 08, 2023 USD ($)	Oct. 24, 2022 USD ($)	Jun. 04, 2022 USD ($)	Apr. 17, 2019 purchaser	Aug. 31, 2010 formerEmployee	Jan. 21, 2024 USD ($)
Loss Contingencies [Line Items]
Accruals for legal matters						$ 15.4
Lease guarantee						$ 21.8
Qdoba guaranteed leases, remaining term						14 years
Jack in the Box
Loss Contingencies [Line Items]
Number of former employees | formerEmployee					5
Damages awarded		$ 6.4
Interest Expense, Interest-Bearing Liability		$ 8.6
Torrez V. Jack In The Box | Settled Litigation
Loss Contingencies [Line Items]
Damages awarded			$ 50.0
J&D Restaurant Group v. Jack in the Box Inc.
Loss Contingencies [Line Items]
Damages awarded	$ 8.0
Number of perspective purchasers | purchaser				2

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SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION - Additional Information Related to Cash Flows (Details) - USD ($) $ in Thousands	4 Months Ended
	Jan. 21, 2024	Jan. 22, 2023
Non-cash investing and financing transactions:
Decrease in obligations for purchases of property and equipment	$ 6,053	$ 4,147
Increase in dividends accrued or converted to common stock equivalents	74	68
Right-of use assets obtained in exchange for operating lease obligations	$ 70,583	$ 54,246

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SUPPLEMENTAL CONSOLIDATED BALANCE SHEET INFORMATION (Details) - USD ($) $ in Thousands	Jan. 21, 2024	Oct. 01, 2023	Jan. 22, 2023	Oct. 02, 2022
Accounts and other receivables, net:
Trade	$ 56,099	$ 93,660
Notes receivable, current portion	2,262	2,262
Income tax receivable	755	949
Other	8,302	6,953
Allowance for doubtful accounts	(4,167)	(4,146)	$ (4,530)	$ (5,975)
Accounts and other receivables, net	63,251	99,678
Property and equipment, net
Property and equipment, at cost	1,261,323	1,258,589
Less accumulated depreciation and amortization	(845,375)	(846,559)
Property and equipment, net	415,948	412,030
Other assets, net:
Company-owned life insurance policies	119,366	113,205
Deferred rent receivable	41,538	41,947
Franchise tenant improvement allowance	44,381	43,590
Notes receivable, less current portion	11,406	11,927
Other	30,357	30,038
Other assets, net	247,048	240,707
Accrued liabilities:
Legal accruals	15,350	40,877
Income tax liabilities	796	58,155
Payroll and related taxes	32,962	49,521
Insurance	30,854	31,349
Sales and property taxes	25,936	30,508
Deferred rent income	5,500	19,397
Advertising	5,160	15,597
Deferred franchise and development fees	5,998	5,952
Other	45,232	50,822
Accrued liabilities	167,788	302,178
Other long-term liabilities:
Defined benefit pension plans	48,045	48,375
Deferred franchise and development fees	44,082	44,522
Other	51,745	50,226
Other long-term liabilities	143,872	143,123
Land
Property and equipment, net
Property and equipment, at cost	94,151	92,007
Buildings
Property and equipment, net
Property and equipment, at cost	971,656	968,221
Restaurant and other equipment
Property and equipment, net
Property and equipment, at cost	162,496	166,714
Construction in progress
Property and equipment, net
Property and equipment, at cost	$ 33,020	$ 31,647

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SUBSEQUENT EVENTS - Narrative (Details)		2 Months Ended	4 Months Ended
	Feb. 16, 2024 $ / shares	Feb. 21, 2024 restaurants	Jan. 21, 2024 $ / shares	Jan. 22, 2023 $ / shares
Subsequent Event [Line Items]
Cash dividends declared per common share (in USD per share)			$ 0.44	$ 0.44
Subsequent Event
Subsequent Event [Line Items]
Refranchising agreements | restaurants		13
Cash dividends declared per common share (in USD per share)	$ 0.44