Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 70

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 8
Chunk 70
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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 EndedJanuary 19,2025January 21,2024Restaurants sold to Del Taco franchisees13 — Proceeds from the sale of company-operated restaurants (1)$5,712 $1,739 Net assets sold (primarily property and equipment)(1,794)— Goodwill related to the sale of company-operated restaurants(461)— Franchise fees(364)— Lease termination(217)— Other (2)(70)(1,993)Gain (loss) on the sale of company-operated restaurants$2,806 $(254)____________________________(1)Amounts in 2024 reflect additional proceeds received in connection with the extension of franchise and lease agreements from the sale of restaurants in prior years.(2)Amount in 2024 includes a $2.2 million impairment of assets related to a Del Taco refranchising transaction that closed in the second quarter of 2024.Assets held for sale — Assets classified as held for sale on our condensed consolidated balance sheets as of January 19, 2025 and September 29, 2024 have carrying amounts of $12.4 million and $16.5 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 $0.1 million as part of two separate transactions, and recognized related gains of $2.4 million. This amount is recorded in “Other operating expenses, net” in the accompanying condensed consolidated statements of earnings. The Company did not acquire any Jack in the Box or Del Taco franchise restaurants in the first quarter of 2025. For further information, see Note 8, Other Operating Expenses, Net, in the notes to the condensed consolidated financial statement.The following table summarizes the number of restaurants acquired from franchisees and the gains recognized for the sixteen weeks ended January 21, 2024 (dollars in thousands):