Company: JACK
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0000807882-25-000072
Chunk: 68

Company: JACK IN THE BOX INC
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 68
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 expenses decreased $1.5 million, or 4.4% in 2025 compared to the prior year, primarily due to decreases in IT costs, partially offset by increases in marketing expense resulting from restaurants refranchised.

Company-Wide Results

Depreciation and Amortization

Depreciation and amortization decreased $1.5 million in 2025 as compared with the prior year. The decrease is primarily due to the refranchising of Del Taco restaurants, as well as certain Jack in the Box franchise assets becoming fully depreciated. These decreases were partially offset by increases for new technology assets placed in service and new company restaurant openings.

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Selling, General and Administrative (“SG&A”) Expenses

The following table presents the amounts for SG&A expenses in each fiscal year (in thousands):

20252024Advertising$39,244 $34,992 Share-based compensation8,240 13,471 Incentive compensation6,013 9,911 Cash surrender value of COLI policies, net(6,882)(14,390)Insurance8,385 4,272 Other94,635 94,977 $149,635 $143,233 

Advertising costs represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs increased $4.3 million compared to the prior year primarily due an incremental contribution to Jack in the Box brand advertising, partially offset by a decrease in company-operated restaurant sales at both brands in the current year.

Share-based compensation in 2025 decreased by $5.2 million compared to the prior year primarily due to forfeitures as well as lower achievement levels for the Company’s performance share awards.

Incentive compensation in 2025 decreased by $3.9 million compared to the prior year primarily due to lower achievement levels compared to the prior year for the Company’s annual incentive plan.

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 $7.5 million as compared to the prior year.

Insurance costs in 2025 increased $4.1 million as compared to the prior year primarily due to a favorable adjustment in 2024 in connection with positive development factors related to workers compensation and general liability claims.

Pre-Opening Costs

Pre-opening costs associated with the