Company: JACK
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0000807882-25-000072
Chunk: 66

Company: JACK IN THE BOX INC
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 66
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 in 2025 primarily due to lower sales driving lower marketing expenses, as well as lower franchise IT support costs.

Del Taco Brand

Company Restaurant Operations

The following table presents company restaurant sales and costs as a percentage of the related sales (dollars in thousands):

20252024Company restaurant sales$210,628 $281,978 Company restaurant costs:Food and packaging$54,605 25.9 %$73,207 26.0 %Payroll and employee benefits$81,366 38.6 %$103,369 36.7 %Occupancy and other$51,381 24.4 %$65,569 23.3 %

Company restaurant sales decreased $71.4 million or 25.3%, in 2025 as compared with the prior year primarily due to a decrease in the average number of restaurants as well as a decrease in transactions.

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The following table presents the approximate impact of these items on company restaurant sales (in millions):

2025 vs. 2024Decrease in the average number of restaurants$(67.9)AUV decrease(3.0)Other(0.5)Total change in company restaurant sales$(71.4)

Same-store sales at company-operated restaurants decreased 2.4% in 2025 compared to a year ago. The following table summarizes the decreases in company-operated same-store sales:

2025 vs. 2024Average check (1)4.5 %Transactions(6.9)%Change in same-store sales(2.4)%

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(1)Includes price increases of approximately 5.5% in 2025.

Food and packaging costs, as a percentage of company restaurant sales, decreased to 25.9% in 2025 from 26.0% a year ago primarily due to menu price increases and favorable beverage funding, partially offset by commodity inflation and unfavorable menu item mix.

Commodity costs inflation was 4.1% in 2025. The largest sources of inflation in the current year were due to beef, poultry, and beverages.

Payroll and employee benefit costs, as a percentage of company restaurant sales, increased to 38.6% in 2025 compared with 36.7% a year ago primarily due to labor inflation impact of 2%. Labor inflation was 7.1% in the current year.

Occupancy and other costs, as a percentage of company restaurant sales, increased to