Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 45

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 1
Chunk 45
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3%70.7%Average number of franchise restaurants466417% increase11.8%Franchised restaurant sales$217,283$198,476Franchised restaurant AUVs$466$476Royalties as a percentage of total franchised restaurant sales4.6%4.8%

Franchise rental revenues increased $3.1 million, or 41.3%, compared to the prior year primarily due to higher rental income and property tax revenue resulting from new subleases related to the 60 restaurants refranchised since the first quarter of 2024.

Franchise royalties and other increased $0.4 million, or 4.3%, compared to the prior year primarily due to higher franchise restaurant sales resulting from the 60 restaurants refranchised since the first quarter of 2024.

Franchise contributions for advertising and other services revenues decreased less than $0.1 million, or 0.3%, compared to the prior year primarily due to lower income from equipment sales, partially offset by increased franchise marketing contributions resulting from the 60 restaurants refranchised since the first quarter of 2024.

Franchise occupancy expenses, primarily rent, increased $3.5 million, or 46.8%, compared to the prior year primarily due to higher operating lease costs in the current year from refranchising.

Franchise support and other costs increased $0.5 million, or 31.2%, compared to the prior year primarily due mainly to higher bad debt expense and franchise support costs resulting from the 60 restaurants refranchised since the first quarter of 2024.

Franchise advertising and other service expenses decreased $0.3 million, or 3.2%, compared to the prior year primarily due to lower expense from equipment sales, partially offset by increases in marketing expense resulting from the 60 restaurants refranchised since the first quarter of 2024.

24

Company-Wide Results 

Depreciation and Amortization

Depreciation and amortization for the quarter ended January 19, 2025 decreased $0.2 million as compared to the prior year period primarily due to the 60 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.

Selling, General and Administrative (“SG&A”) Expenses

The following table presents the amounts for SG&A expenses in each period (in thousands):

Sixteen Weeks EndedJanuary