Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 40

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 40
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 the condensed consolidated financial statements.

14

JACK IN THE BOX INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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-dateJuly 6,2025July 7,2024July 6,2025July 7,2024Integration and strategic initiatives (1)$2,057 $4,723 $3,748 $14,612 Costs of closed restaurants and other (2)1,917 160 4,684 1,792 Operating restaurant impairment charges (3)1,058 136 2,935 136 Accelerated depreciation54 95 74 485 Gains on acquisition of restaurants (4)— — (6)(2,357)Losses on disposition of property and equipment, net (5)597 527 1,983 1,675 Other operating expenses, net$5,683 $5,641 $13,418 $16,343 ____________________________(1)Integration and strategic initiatives mainly relate to the integration of Del Taco in both years, as well as strategic consulting fees in 2024.(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 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