Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 108

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 108
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reciation and Amortization

Depreciation and amortization for the quarter ended July 6, 2025 decreased $1.0 million in the quarter and $2.9 million year-to-date compared to the prior year period primarily due to the 47 Del Taco restaurants refranchised since a year ago, as well as certain Jack in the Box franchise assets becoming fully depreciated. These decreases were partially offset by increases for new technology assets and new company operated restaurants.

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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):

QuarterYear-to-dateJuly 6,2025July 7,2024July 6,2025July 7,2024Advertising$7,398 $8,267 $25,839 $26,438 Incentive compensation(797)1,237 4,659 7,719 Share-based compensation2,127 2,357 6,812 11,018 Cash surrender value of COLI policies, net(6,062)(3,223)(3,264)(9,289)Litigation matters530 518 1,704 1,236 Insurance2,426 (906)6,351 3,279 Other21,213 21,330 70,898 72,799 $26,835 $29,580 $112,999 $113,200 

Advertising costs mainly represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs decreased $0.9 million in the quarter and $0.6 million on a year-to-date basis as compared to the prior year, primarily due to a decrease in company-operated restaurant sales in the current year, partially offset by an increase in expenses related to new markets and third party digital sponsorships.

Incentive compensation decreased by $2.0 million in the quarter and $3.1 million on a year-to-date basis as compared to the prior year, primarily due to lower achievement levels for the Company’s annual incentive plan.

Share-based compensation decreased by $0.2 million in the quarter and $4.2 million on a year-to-date basis as compared to the prior year, primarily due to current year forfeitures and lower achievement levels for performance-based awards.

The cash surrender value of our company-owned life insurance (“COLI”) policies, net of changes