Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 106

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 106
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 favorable beverage funding, partially offset by commodity inflation and unfavorable menu item mix. Commodity inflation was 4.7% in the quarter and 3.9% year-to-date. The greatest impacts on both the quarter and year-to-date inflation was seen in beef, poultry, cheese, and beverages.

Payroll and employee benefit costs, as a percentage of company restaurant sales, increased 1.0% in the quarter and 2.4% year-to-date, compared to the prior year. The increase was primarily due to higher insurance and CA unemployment payroll tax adjustment, partially offset by wage deflation. There was labor deflation of 0.5% in the quarter and inflation of 9.2% year-to-date.

Occupancy and other costs, as a percentage of company restaurant sales, increased 1.7% in the quarter and 1.3% year-to-date compared to the prior year. In the quarter, the increase was primarily due to higher utilities and higher other operating costs including delivery fees, which was partially offset by a property tax refund received related to prior years. Year-to-date the increase was mainly due to higher costs for maintenance and repair and utilities.

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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):

QuarterYear-to-dateJuly 6,2025July 7,2024July 6,2025July 7,2024Franchise rental revenues$8,589$6,971$27,726$20,797Royalties7,4697,28725,05424,055Franchise fees and other6961841,715950Franchise royalties and other8,1657,47126,76925,005Franchise contributions for advertising and other services7,0136,85423,56323,583Total franchise revenues$23,767$21,296$78,058$69,385Franchise occupancy expenses $8,385$6,934$27,707$20,612Franchise support and other costs1,5019595,1033,508Franchise advertising and other services expenses7,4537,63425,17625,495Total franchise costs$17,339$15,527$57,986$49,615Franchise costs as a percentage of total franchise revenues73.0%72.9%74.3%71.5%Average number