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

Company: JACK IN THE BOX INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 2
Chunk 14
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)(55,854)Financing activities(44,994)(75,055)Net cash flows$(8,575)$(136,930)

Operating Activities. Operating cash flows increased $74.9 million compared with a year ago. This is primarily due to a favorable change in working capital of $92.1 million, partially offset by lower net income, when adjusted for non-cash items, of $17.2 million. The favorable change in working capital is primarily a result of $50.3 million paid in 2024 for fiscal 2023 income tax payments deferred in connection with the Southern California winter storm disaster declaration, $35.0 million received in the current year in connection with the a new supply chain contract, and $25.5 million paid in 2024 in connection with the Torrez settlement.

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Investing Activities. Cash flows used in investing activities decreased by $23.4 million compared with a year ago primarily due to higher proceeds from the sale of property of $13.6 million, higher proceeds from the sale of Del Taco restaurants to franchisees of $3.7 million in the current year, death benefit proceeds received of $3.3 million in the current year, lower purchases of assets intended for sale or leaseback of $3.2 million in the current year, and lower purchases of property and equipment of $1.3 million in the current year.

Capital Expenditures — The composition of capital expenditures in each period follows (in thousands):

Year-to-dateApril 13,2025April 14,2024Restaurants:Remodel / refresh programs$5,555 $6,278 New restaurants11,438 13,129 Restaurant facility expenditures8,497 10,560 Restaurant information technology20,674 12,491 46,164 42,458 Corporate Services:Information technology1,382 6,566 Corporate facilities223 62 1,605 6,628 Total capital expenditures$47,769 $49,086 Purchases of assets intended for sale or leaseback (exercising right of first refusal)$8,827 $11,985 

Capital expenditures decreased $1.3 million primarily due to a decrease in corporate technology spending due to the completion of our new enterprise resource planning software implementation last year as well as a decrease in restaurant facility expenditures. These decreases were partially offset by an increase in restaurant information technology related to the rollout of a new POS system for Jack in the