Company: JACK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000807882-25-000030
Chunk: 99

Company: JACK IN THE BOX INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 8
Chunk 99
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roll and employee benefit costs, as a percentage of company restaurant sales, increased 3.2% in the quarter, and 2.8% year-to-date compared to the prior year. During the quarter and on a year-to-date basis, increases in wage inflation were partially offset by a decrease in incentive compensation due to lower achievement levels compared to the prior year. Labor inflation was approximately 10.6% in the quarter and 12.9% year-to-date, primarily due to the wage increases required in California effective April 1, 2024 under AB 1228.

Occupancy and other costs, as a percentage of company restaurant sales, increased 1.7% in the quarter, and 1.4% year-to-date compared to the prior year primarily due to higher rent, utilities, and other operating costs including delivery fees.

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):

QuarterYear-to-dateApril 13,2025April 14,2024April 13,2025April 14,2024Franchise rental revenues$77,935$79,618$183,716$185,196Royalties43,30545,414105,130106,737Franchise fees and other2,4492,1234,2394,143Franchise royalties and other45,75447,537109,369110,880Franchise contributions for advertising and other services46,94750,179114,860117,541Total franchise revenues$170,636$177,334$407,945$413,617Franchise occupancy expenses $51,153$50,849$119,069$116,037Franchise support and other costs3,1982,7576,4996,505Franchise advertising and other services expenses48,02952,003117,021121,896Total franchise costs$102,380$105,609$242,589$244,438Franchise costs as a percentage of total franchise revenues60.0%59.6%59.5%59.1%Average number of franchise restaurants2,0262,0372,0292,037% decrease(0.5)%(0.4)%Franchised restaurant sales$865,609$911,265$2,097,956$2,138,015Franchised restaurant AUVs$