Company: JACK
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0000807882-25-000072
Chunk: 36

Company: JACK IN THE BOX INC
Filing Date: 2025-11-19
Form: 10-K
Item: Item 1A
Chunk 36
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 in completion of construction or shortages of any equipment or construction materials;

•competition for quality cost-efficient property that has a favorable zoning classification allowing drive-thru sales;

•negative impact of delays due to lengthy supply chain lead times for building components and systems;

•negative impact of delays due to longer timelines for permit review and field inspections with the municipal agencies;

•negative impact of delays due to longer than usual design, permitting, approval, procurement, and field installation timelines for utility service providers to supply primary services on new restaurant development projects (i.e., electrical, gas, sewer, water, etc.)

•the inability to identify, or the unavailability of suitable sites at acceptable cost and other leasing or purchase terms;

•developed properties not achieving desired revenue or cash flow levels once opened;

•the negative impact of a new restaurant upon sales at nearby existing restaurants;

•the challenge of developing in areas where competitors are more established or have greater penetration or access to suitable development sites;

•incurring substantial unrecoverable costs in the event a development project is abandoned prior to completion;

•impairment charges resulting from underperforming restaurants or decisions to curtail or cease investment in certain locations or markets;

•in new geographic markets where we have limited or no existing locations, the inability to successfully expand or acquire critical market presence for our brands, acquire name recognition, successfully market our products, or attract new customers;

•operating cost levels that reduce the demand for, or raise the cost of, developing new restaurants;

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•the challenge of identifying, recruiting, and training qualified franchisees or company restaurant management;

Although we manage our growth and development activities to help reduce such risks, we cannot assure that our present or future growth and development activities will perform in accordance with our expectations. Our inability to expand in accordance with our plans or to manage the risks associated with our growth could have a material adverse effect on our results of operations and financial condition.

Our highly-franchised business model presents a number of risks, and the failure of our franchisees to operate successful and profitable restaurants could negatively impact our business.

As of September 28, 2025, approximately 93% of our Jack in the Box restaurants and 77% of Del Taco restaurants were franchised; therefore, our success increasingly relies on the financial success and cooperation of our franchisees, yet we have limited influence over their operations. Our income arises from two sources: fees from franchised restaurants (e.g., royalties and rent based on a percentage of sales) and, to a lesser