Segment Reporting

12 Months Ended

Sep. 29, 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. These costs are reflected in the caption “Shared services” below.

Our measure of segment profit excludes depreciation and amortization, share-based compensation, company-owned life insurance (“COLI”) gains/ losses, net of changes in our non-qualified deferred compensation obligation supported by these policies, acquisition, integration, and strategic initiatives, 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):

	2024		2023		2022
Revenues by segment:
Jack in the Box restaurant operations	$	1,197,420	$	1,195,311	$	1,151,188
Del Taco restaurant operations	373,886		496,995		316,895
Consolidated revenues	$	1,571,306	$	1,692,306	$	1,468,083
Segment profit reconciliation:
Jack in the Box segment profit	$	362,377	$	381,171	$	383,794
Del Taco segment profit	28,968		45,730		62,353
Shared services	(77,138)		(87,862)		(107,730)
	$	314,207	$	339,039	$	338,417
Depreciation and amortization	59,776		62,287		56,100
Acquisition, integration and strategic initiatives	15,631		9,112		20,081
Share-based compensation	13,471		11,205		7,122
Net COLI (gains) losses	(14,390)		(5,953)		9,911
Goodwill impairment	162,624		—		—
Gains on the sale of company-operated restaurants	(3,255)		(17,998)		(3,878)
Gains on acquisition of restaurants	(2,702)		—		(309)
Amortization of favorable and unfavorable leases and subleases, net	516		1,633		1,120
Earnings from operations	$	82,536	$	278,753	$	248,270

We do 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.