Company: JACK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000807882-25-000030
Chunk: 6

Company: JACK IN THE BOX INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 6
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 royalties and other decreased $1.8 million, or 3.8% in the quarter, and $1.5 million, or 1.4% year-to-date compared to the prior year primarily due to lower royalty income driven by lower sales.

Franchise contributions for advertising and other services revenues decreased $3.2 million, or 6.4% in the quarter and $2.7 million, or 2.3% year-to-date, as compared to the prior year. The decrease in the quarter is primarily due to lower marketing contributions of $2.3 million in connection with lower sales, and a decrease in digital fees of $0.9 million. On a year-to-date basis, the decrease is primarily due to lower marketing contributions of $2.0 million in connection with lower sales, as well as a decrease in digital fees of $0.7 million.

Franchise occupancy expenses, primarily rent, increased $0.3 million, or 0.6% in the quarter and $3.0 million, or 2.6% year-to-date compared to the prior year. On a year-to-date basis, this was primarily due to higher pass through property tax expense and common area maintenance costs of $1.8 million and higher operating lease costs of $1.4 million.

Franchise support and other costs increased $0.4 million, or 16.0% and was essentially flat year-to-date compared to the prior year.

Franchise advertising and other service expenses decreased $4.0 million, or 7.6% in the quarter, and $4.9 million or 4.0% year-to-date compared to the prior year. The decrease is primarily due to lower sales driving lower marketing expenses, as well as lower franchise IT support costs and digital processing fees.

Del Taco Brand

Company Restaurant Operations

The following table presents company restaurant sales and costs as a percentage of the related sales (dollars in thousands):

QuarterYear-to-dateApril 13, 2025April 14, 2024April 13, 2025April 14, 2024Company restaurant sales$47,397 $68,171 $115,048 $160,154 Company restaurant costs:Food and packaging$11,658 24.6 %$17,428 25.6 %$28,617 24.9 %$42,300 26.4 %Payroll and employee benefits$18,095