Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 5

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 5
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 1.4% year-to-date compared to the prior year. The increases on both a quarter-to-date and year-to-date basis were primarily due to sales deleverage, higher rent, utilities, and other operating costs including delivery fees.

24

Jack in the Box Franchise Operations

The following table presents franchise revenues and costs in each period and other information we believe is useful in analyzing the change in franchise operating results (dollars in thousands):

QuarterYear-to-dateJuly 6,2025July 7,2024July 6,2025July 7,2024Franchise rental revenues$76,538$82,154$260,254$267,350Royalties43,07846,490148,208153,227Franchise fees and other1,5261,3325,7655,475Franchise royalties and other44,60447,822153,973158,702Franchise contributions for advertising and other services47,14751,419162,007168,960Total franchise revenues$168,289$181,395$576,234$595,012Franchise occupancy expenses $50,829$51,055$169,898$167,092Franchise support and other costs3,3142,8949,8139,399Franchise advertising and other services expenses47,99452,810165,015174,706Total franchise costs$102,137$106,759$344,726$351,197Franchise costs as a percentage of total franchise revenues60.7%58.9%59.8%59.0%Average number of franchise restaurants2,0262,0362,0282,037% decrease(0.5)%(0.4)%Franchised restaurant sales$863,706$931,303$2,961,662$3,069,318Franchised restaurant AUVs$426$457$1,460$1,507Royalties as a percentage of total franchised restaurant sales5.0%5.0%5.0%5.0%

Franchise rental revenues decreased $5.6 million, or 6.8% in the quarter, and $7.1 million, or 2.7% year-to-date, compared to the prior year. Decreases in both periods were primarily due to lower percentage rent of $6.8 million and $12.7 million, respectively, partially offset by lease termination fees of $1.8 million and $