Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 89

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 8
Chunk 89
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 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 19,2025January 21,2024Advertising$10,539 $10,393 Share-based compensation3,689 4,820 Cash surrender value of COLI policies, net1,391 (4,834)Litigation matters435 196 Other34,618 35,790 $50,672 $46,365 

Advertising costs mainly represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs increased $0.1 million compared to the prior year, primarily due to an increase in expenses related to new markets and third party digital sponsorships, partially offset by a decrease in Del Taco company-operated restaurant sales in the current year.

Share-based compensation decreased by $1.1 million compared to the prior year, primarily due to current year forfeitures and lower achievement levels for performance-based equity awards.

The cash surrender value of our company-owned life insurance (“COLI”) policies, net of changes in our non-qualified deferred compensation obligation supported by these policies, are subject to market fluctuations. The changes in market values had an unfavorable impact of $6.2 million compared to the prior year.

Litigation matters increased $0.2 million compared to the prior year primarily due to the timing of litigation developments. Refer to Note 14, Commitments and Contingencies, in the condensed consolidated financial statements for additional information related to the legal matters.

Other Operating Expenses, Net

Other operating expenses, net is comprised of the following (in thousands):

Sixteen Weeks EndedJanuary 19,2025January 21,2024Integration and strategic initiatives$1,415 $5,621 Costs of closed restaurants and other841 858 Operating restaurant impairment charges748 —