Company: JACK
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0000807882-25-000030
Chunk: 38

Company: JACK IN THE BOX INC
Filing Date: 2025-05-14
Form: 10-Q
Item: Item 1
Chunk 38
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8.OTHER OPERATING EXPENSES, NET

Other operating expenses, net in the accompanying condensed consolidated statements of earnings (loss) is comprised of the following (in thousands):QuarterYear-to-dateApril 13,2025April 14,2024April 13,2025April 14,2024Integration and strategic initiatives (1)$276 $4,268 $1,691 $9,889 Costs of closed restaurants and other (2)1,927 773 2,768 1,632 Operating restaurant impairment charges (3)1,129 — 1,877 — Accelerated depreciation20 88 20 125 Gains on acquisition of restaurants (4)— — (6)(2,357)Losses on disposition of property and equipment, net (5)864 138 1,385 1,148 Other operating expenses, net$4,216 $5,267 $7,735 $10,437 ____________________________(1)Integration and strategic initiatives are related to the integration of Del Taco, as well as strategic consulting fees.(2)Costs of closed restaurants and other generally includes ongoing costs associated with closed restaurants and cancelled project costs.(3)Restaurant impairment charges in 2025 are related to underperforming Del Taco and Jack in the Box restaurants. (4)The 2024 amount relates to the gains on acquisition of 9 Del Taco restaurants. Refer also to Note 4, Franchise Acquisitions, in the notes to the condensed consolidated financial statements for more information.(5)In 2024, loss on disposition of property and equipment primarily related to the lease termination and early closures of Del Taco restaurants. In 2025, the amount is primarily related to retirements in connection with reimage projects.

9.SEGMENT REPORTING

The Company’s principal business consists of developing, operating and franchising our Jack in the Box and Del Taco restaurant brands, each of which is considered a reportable operating segment. The company also utilizes a shared-services model whereby each brand’s results of operations are assessed separately and do not include costs related to certain corporate functions which support both brands. The segment reporting structure reflects the Company’s current management structure, internal reporting method and financial information used in deciding how to allocate Company resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. This segment reporting is in line with our reporting units for goodwill.The Company measures and evaluates its