Company: JACK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0000807882-25-000043
Chunk: 53

Company: JACK IN THE BOX INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 53
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 %)(3.0 %)Change in same-store sales(6.4 %)0.1 %(3.3 %)0.6 %

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(1)Includes price increases of approximately 2.3% in the quarter and 3.8% year-to-date.

Food and packaging costs, as a percentage of company restaurant sales, decreased 0.6% in the quarter, and 2.0% year-to-date compared to the prior year, due mainly to a 0.9% and 2.0% benefit, respectively, from a new beverage contract with funding retroactive to January 1, 2024, as well as menu price increases, partially offset by commodity inflation and unfavorable menu item mix. Commodity inflation was 4.0% in the quarter, and 3.3% year-to-date, with the greatest impacts for the quarter in beef, poultry, and eggs, and the greatest impacts for the year-to-date period in beef, beverages, eggs, and poultry.

Payroll and employee benefit costs, as a percentage of company restaurant sales, increased 2.2% in the quarter, and 2.6% year-to-date compared to the prior year. During the quarter and on a year-to-date basis, increases were primarily due to additional FUTA taxes in California as well as wage inflation. The increases were partially offset by a decrease in incentive compensation due to lower achievement levels compared to the prior year. Labor inflation was approximately 1.5% in the quarter and 9.5% year-to-date. The year-to-date inflation was primarily due to the wage increases required in California effective April 1, 2024 under AB 1228.

Occupancy and other costs, as a percentage of company restaurant sales, increased 1.6% in the quarter, and 1.4% year-to-date compared to the prior year. The increases on both a quarter-to-date and year-to-date basis were primarily due to sales deleverage, higher rent, utilities, and other operating costs including delivery fees.

24

Jack in the Box Franchise Operations

The following table presents franchise revenues and costs in each period and other information we believe is useful in analyzing the change in franchise operating results (dollars in thousands):

QuarterYear-to-dateJuly 6,2025July 7,2024July 6,2025July 7,2024Franchise rental revenues$76,538$82,154$