UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF
1934
Date
of Report (Date of earliest event reported):
February 17, 2016
|
JACK
IN THE BOX INC.
|
|
|
(Exact name of registrant as specified in its charter)
|
|
DELAWARE
|
1-9390
|
95-2698708
|
(State or other jurisdiction
of incorporation)
|
(Commission File
Number)
|
(I.R.S. Employer
Identification Number)
|
9330 BALBOA AVENUE, SAN DIEGO, CA
|
92123
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(858)
571-2121
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the appropriate box below if the Form 8-K is intended to simultaneously
satisfy the filing obligation of the registrant under any of the
following provisions (see
General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM 2.02
|
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
|
On February 17, 2016, Jack in the Box Inc. issued a press release
announcing its first quarter fiscal 2016 operating results and
disclosing other information.
A copy of the press release is attached as Exhibit 99.1.
ITEM 9.01
|
FINANCIAL STATEMENTS AND EXHIBITS
|
(d) Exhibits.
Exhibit
No. Description
----------- ---------------
99.1 Press Release of Jack in the Box Inc. dated February
17, 2016
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
|
JACK IN THE BOX INC.
|
|
|
|
|
|
|
|
By:
|
/s/ JERRY P. REBEL
|
|
|
Jerry P. Rebel
|
|
|
Executive Vice President
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
(Duly Authorized Signatory)
|
|
|
Date: February 17, 2016
|
Exhibit 99.1
Jack in
the Box Inc. Reports First Quarter FY 2016 Earnings; Updates Guidance
for FY 2016; Declares Quarterly Cash Dividend; Announces Plans to
Increase Jack in the Box Franchise Ownership and Reduce Overhead
SAN DIEGO--(BUSINESS WIRE)--February 17, 2016--Jack in the Box Inc.
(NASDAQ: JACK) today reported earnings from continuing operations of
$33.9 million, or $0.94 per diluted share, for the first quarter ended
January 17, 2016, compared with $37.1 million, or $0.94 per diluted
share, for the first quarter of fiscal 2015.
Operating earnings per share, a non-GAAP measure which the company
defines as diluted earnings per share from continuing operations on a
GAAP basis excluding restructuring charges and gains or losses from
refranchising, were $0.93 in the first quarter of fiscal 2016 compared
with $0.93 in the prior year quarter.
A reconciliation of non-GAAP measurements to GAAP results is provided
below, with additional information included in the attachment to this
release. Figures may not add due to rounding.
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
2016
|
|
2015
|
Diluted earnings per share from continuing operations – GAAP
|
|
$
|
0.94
|
|
|
$
|
0.94
|
|
Gains from refranchising
|
|
(0.01
|
)
|
|
(0.01
|
)
|
Operating earnings per share – Non-GAAP
|
|
$
|
0.93
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
Lenny Comma, chairman and chief executive officer, said, “Our first
quarter results were disappointing as operating earnings per share were
below our expectations. At the Jack in the Box brand, margin expansion
offset sales that were below our plan. Solid sales and traffic growth at
Qdoba were hampered by lower than expected margins and some
non-repetitive costs.
"Jack in the Box sales in the last part of the quarter were lower than
we anticipated as several competitors began promoting aggressive value
offers. We also experienced weakness at breakfast and lunch throughout
the quarter, which we attribute primarily to our decision to shift the
timing of some of our promotional activity around breakfast to the
second quarter as compared to the first quarter of last year. In
addition, we believe a competitor's messaging around its launch of
all-day breakfast had some impact on our results, particularly in the
10:30 a.m. to noon period.
"In late January, we introduced multiple upgrades to the core menu at
our Jack in the Box restaurants system-wide. We are confident in our
ability to drive profitable sales growth and brand loyalty over the
long-term by balancing our messages to include both higher-quality, more
craveable food along with differentiated value offerings.
"Qdoba sales were strong on top of double-digit comparisons, driven by
the introduction of Knockout Tacos® which generated nice
traffic growth. Qdoba's profitability for the quarter was impacted by a
number of items, including advertising costs which were $0.03 per share
higher than last year due to timing, higher pre-opening costs of about
$0.02 per share related to a greater number of openings, and costs of
about $0.02 per share for new uniforms and a brand-wide conference.
"In addition to these items, mark-to-market adjustments hurt our
consolidated results by approximately $0.01 per share.
"As we have discussed previously, we have been evaluating various levers
to enhance shareholder value. At our May investor meeting, we will
discuss our long-term strategies to grow sales and expand both brands.
In the meantime, we have made a couple of key decisions, including plans
to increase Jack in the Box franchise ownership to at least 90 percent
and reduce G&A to approximately 3 percent of consolidated system-wide
sales. We are targeting completion of these initiatives over the next
two years. We will share more specifics at the meeting, including the
potential implications of these changes to our capital structure."
Increases in same-store sales:
|
|
|
|
|
Sixteen Weeks Ended
|
|
|
|
|
|
January 17,
|
|
January 18,
|
|
|
|
|
|
2016
|
|
2015
|
Jack in the Box:
|
|
|
|
|
|
|
|
Company
|
|
|
|
0.5
|
%
|
|
3.9
|
%
|
|
Franchise
|
|
|
|
1.8
|
%
|
|
4.6
|
%
|
|
System
|
|
|
|
1.4
|
%
|
|
4.4
|
%
|
Qdoba:
|
|
|
|
|
|
|
|
Company
|
|
|
|
1.5
|
%
|
|
12.9
|
%
|
|
Franchise
|
|
|
|
2.1
|
%
|
|
15.1
|
%
|
|
System
|
|
|
|
1.8
|
%
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Jack in the Box system same-store sales increased 1.4 percent for the
quarter. Company same-store sales increased 0.5 percent, with average
check up 3.4 percent.
Jack in the Box system same-store sales growth for the quarter lagged
the QSR sandwich segment by 2.4 percentage points for the comparable
period, according to The NPD Group’s SalesTrack® Weekly for the 16-week
time period ended January 17, 2016. Included in this segment are 16 of
the top QSR sandwich and burger chains in the country.
Qdoba same-store sales increased 1.8 percent system-wide and 1.5 percent
for company restaurants in the first quarter. Company same-store sales
reflected a 1.3 percent increase in transactions as well as another
quarter of double-digit growth in catering sales.
Consolidated restaurant operating margin increased by 20 basis points to
19.5 percent of sales in the first quarter of 2016, compared with 19.3
percent of sales in the year-ago quarter. Restaurant operating margin
for Jack in the Box company restaurants increased 150 basis points to
20.9 percent of sales. The improvement was due primarily to lower food
and packaging costs and the benefit of refranchising. The decrease in
food and packaging costs as a percentage of sales resulted from the
benefit of favorable product mix changes and lower discounting,
commodity deflation of approximately 1.7 percent in the quarter, and
menu price increases. Restaurant operating margin for Qdoba company
restaurants decreased 270 basis points to 16.6 percent of sales, as
higher labor staffing, new uniforms and costs associated with a greater
number of new restaurant openings more than offset the sales growth and
benefits from commodity deflation of approximately 5.4 percent in the
quarter.
Franchise margin as a percentage of total franchise revenues improved to
51.5 percent in the first quarter from 51.0 percent in the prior year
quarter. The improvement was due primarily to higher royalty revenue for
both brands and higher rental income from Jack in the Box franchised
restaurants resulting from increases in franchise average unit volumes.
SG&A expense for the first quarter increased by $2.8 million and was
14.0 percent of revenues as compared to 13.5 percent in the prior year
quarter. The increase reflects a $2.1 million increase in advertising
costs at Qdoba due to the timing of promotional activities, higher
pre-opening costs of $1.1 million resulting from a greater number of
Qdoba openings and restaurants under construction in the first quarter,
and $0.8 million related to a Qdoba brand conference for all company and
franchise operators. Mark-to-market adjustments on investments
supporting the company’s non-qualified retirement plans negatively
impacted SG&A by $1.0 million in the first quarter of 2016 as compared
to a negative impact of $0.2 million in the first quarter of 2015,
resulting in a year-over-year increase in SG&A of $0.8 million. These
increases were partially offset by a $1.6 million decrease in pension
expense and a $1.2 million decrease in incentive compensation.
Interest expense, net, increased by $3.0 million in the first quarter
due to increased leverage and a higher effective interest rate for 2016.
The tax rate for the first quarter of 2016 was 37.6 percent versus 36.1
percent for the first quarter of 2015. The higher tax rate in the first
quarter of 2016 was due primarily to an increase in state tax rates, and
unfavorable adjustments on investments supporting the company's non
qualified retirement plans.
Capital Allocation
The company repurchased approximately 1,274,000 shares of its common
stock in the first quarter of 2016 at an average price of $78.48 per
share for an aggregate cost of $100.0 million. This leaves $100.0
million remaining under a stock-buyback program authorized by the
company’s Board of Directors in September 2015 that expires in November
2017.
"In addition, last week our Board of Directors authorized an additional
$100 million stock buyback program that also expires in November 2017.
The additional authorization underscores the confidence both the
management team and our Board of Directors have in our business model
and long-term growth plans," Comma said.
The company also announced today that on February 12, 2016, its Board of
Directors declared a quarterly cash dividend of $0.30 per share on the
company’s common stock. The dividend is payable on March 14, 2016, to
shareholders of record at the close of business on March 1, 2016.
Guidance
The following guidance and underlying assumptions reflect the company’s
current expectations for the second quarter ending April 10, 2016, and
fiscal year ending October 2, 2016. Fiscal 2016 is a 53-week year, with
16 weeks in the first quarter, 12 weeks in each of the second and third
quarters, and 13 weeks in the fourth quarter.
Second quarter fiscal year 2016 guidance
-
Same-store sales ranging from approximately down 3.0 percent to flat
at Jack in the Box company restaurants versus a 7.4 percent increase
in the year-ago quarter. The low end of the sales guidance for the
second quarter reflects trends through the first four weeks as
compared to the same period of the prior year when sales growth
exceeded 10 percent.
-
Same-store sales ranging from approximately flat to up 3.0 percent at
Qdoba company restaurants versus a 7.0 percent increase in the
year-ago quarter. Excluding the first week of the current quarter,
which was negatively impacted by weather, sales trends are tracking at
the low end of the guidance range as compared to the first four weeks
of the prior year when sales growth exceeded 14 percent.
Fiscal year 2016 guidance
-
Same-store sales increase of approximately 1.0 to 2.0 percent at Jack
in the Box company restaurants.
-
Same-store sales increase of approximately 2.0 to 3.0 percent at Qdoba
company restaurants.
-
Commodity deflation of approximately 2 percent for Jack in the Box and
approximately 4 percent at Qdoba.
-
Restaurant operating margin of approximately 20.0 to 20.5 percent.
-
SG&A as a percentage of revenue of approximately 13.0 to 13.5 percent
as compared to 14.4 percent in fiscal 2015.
-
Impairment and other charges as a percentage of revenue of
approximately 80 basis points.
-
Approximately 20 new Jack in the Box restaurants opening system-wide,
the majority of which will be franchise locations.
-
Approximately 50 to 60 new Qdoba restaurants, of which approximately
half are expected to be company locations.
-
Capital expenditures of $100 million to $120 million.
-
Tax rate of approximately 38 percent.
-
Operating earnings per share, which the company defines as diluted
earnings per share from continuing operations on a GAAP basis
excluding restructuring charges and gains or losses from
refranchising, ranging from $3.50 to $3.63 in fiscal 2016 as compared
to operating earnings per share of $3.00 in fiscal 2015. The estimated
benefit of the 53rd week in fiscal 2016 is approximately
$0.08 per diluted share.
Conference call
The company will host a conference call for financial analysts and
investors on Thursday, February 18, 2016, beginning at 8:30 a.m. PT
(11:30 a.m. ET). The conference call will be broadcast live over the
Internet via the Jack in the Box Inc. corporate website. To access the
live call through the Internet, log onto the Investors section of the
Jack in the Box Inc. website at http://investors.jackinthebox.com
at least 15 minutes prior to the event in order to download and install
any necessary audio software. A replay of the call will be available
through the Jack in the Box Inc. corporate website for 21 days,
beginning at approximately 11:30 a.m. PT on February 18.
About Jack in the Box Inc.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant
company that operates and franchises Jack in the Box® restaurants,
one of the nation’s largest hamburger chains, with more than 2,200
restaurants in 21 states and Guam. Additionally, through a wholly owned
subsidiary, the company operates and franchises Qdoba Mexican Eats®,
a leader in fast-casual dining, with more than 600 restaurants in 47
states, the District of Columbia and Canada. For more information on
Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com
or www.qdoba.com.
Safe harbor statement
This press release contains forward-looking statements within the
meaning of the federal securities laws. Such statements are subject to
substantial risks and uncertainties. A variety of factors could cause
the company’s actual results to differ materially from those expressed
in the forward-looking statements, including the following: the success
of new products and marketing initiatives; the impact of competition,
unemployment, trends in consumer spending patterns and commodity costs;
the company’s ability to achieve and manage its planned growth, which is
affected by the availability of a sufficient number of suitable new
restaurant sites, the performance of new restaurants, and risks relating
to expansion into new markets; litigation risks; food safety incidents
or negative publicity impacting the reputations of our brands; and stock
market volatility. These and other factors are discussed in the
company’s annual report on Form 10-K and its periodic reports on Form
10-Q filed with the Securities and Exchange Commission which are
available online at http://investors.jackinthebox.com or in hard
copy upon request. The company undertakes no obligation to update or
revise any forward-looking statement, whether as the result of new
information or otherwise.
JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF
NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)
Operating earnings per share, a non-GAAP measure, is defined by the
company as diluted earnings per share from continuing operations on a
GAAP basis excluding restructuring charges and gains or losses from
refranchising. Management believes this non-GAAP financial measure
provides important supplemental information to assist investors in
analyzing the performance of the company’s core business. In addition,
the company uses operating earnings per share in establishing
performance goals for purposes of executive compensation. The company
encourages investors to rely upon its GAAP numbers but includes this
non-GAAP financial measure as a supplemental metric to assist investors.
This non-GAAP financial measure should not be considered as a substitute
for, or superior to, financial measures calculated in accordance with
GAAP. In addition, this non-GAAP financial measure used by the company
may be calculated differently from, and therefore may not be comparable
to, similarly titled measures used by other companies.
Below is a reconciliation of non-GAAP operating earnings per share to
the most directly comparable GAAP measure, diluted earnings per share
from continuing operations. Figures may not add due to rounding.
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
2016
|
|
2015
|
Diluted earnings per share from continuing operations – GAAP
|
|
$
|
0.94
|
|
|
$
|
0.94
|
|
Gains from refranchising
|
|
(0.01
|
)
|
|
(0.01
|
)
|
Operating earnings per share – Non-GAAP
|
|
$
|
0.93
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
|
(In thousands, except per share data)
|
(Unaudited)
|
|
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
|
2016
|
|
|
|
2015
|
|
Revenues:
|
|
|
|
|
Company restaurant sales
|
|
$
|
353,221
|
|
|
$
|
351,896
|
|
Franchise rental revenues
|
|
|
69,738
|
|
|
|
69,446
|
|
Franchise royalties and other
|
|
|
47,864
|
|
|
|
47,279
|
|
|
|
|
470,823
|
|
|
|
468,621
|
|
Operating costs and expenses, net:
|
|
|
|
|
Company restaurant costs:
|
|
|
|
|
Food and packaging
|
|
|
108,911
|
|
|
|
113,109
|
|
Payroll and employee benefits
|
|
|
97,907
|
|
|
|
95,679
|
|
Occupancy and other
|
|
|
77,699
|
|
|
|
75,031
|
|
Total company restaurant costs
|
|
|
284,517
|
|
|
|
283,819
|
|
Franchise occupancy expenses
|
|
|
52,219
|
|
|
|
52,418
|
|
Franchise support and other costs
|
|
|
4,862
|
|
|
|
4,723
|
|
Selling, general and administrative expenses
|
|
|
65,872
|
|
|
|
63,095
|
|
Impairment and other charges, net
|
|
|
1,657
|
|
|
|
2,180
|
|
Gains on the sale of company-operated restaurants
|
|
|
(818
|
)
|
|
|
(850
|
)
|
|
|
|
408,309
|
|
|
|
405,385
|
|
Earnings from operations
|
|
|
62,514
|
|
|
|
63,236
|
|
Interest expense, net
|
|
|
8,175
|
|
|
|
5,213
|
|
Earnings from continuing operations and before income taxes
|
|
|
54,339
|
|
|
|
58,023
|
|
Income taxes
|
|
|
20,442
|
|
|
|
20,925
|
|
Earnings from continuing operations
|
|
|
33,897
|
|
|
|
37,098
|
|
Losses from discontinued operations, net of income tax benefit
|
|
|
(676
|
)
|
|
|
(1,263
|
)
|
Net earnings
|
|
$
|
33,221
|
|
|
$
|
35,835
|
|
|
|
|
|
|
Net earnings per share - basic:
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
0.96
|
|
|
$
|
0.96
|
|
Losses from discontinued operations
|
|
|
(0.02
|
)
|
|
|
(0.03
|
)
|
Net earnings per share (1)
|
|
$
|
0.94
|
|
|
$
|
0.93
|
|
Net earnings per share - diluted:
|
|
|
|
|
Earnings from continuing operations
|
|
$
|
0.94
|
|
|
$
|
0.94
|
|
Losses from discontinued operations
|
|
|
(0.02
|
)
|
|
|
(0.03
|
)
|
Net earnings per share (1)
|
|
$
|
0.92
|
|
|
$
|
0.91
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
Basic
|
|
|
35,458
|
|
|
|
38,640
|
|
Diluted
|
|
|
35,946
|
|
|
|
39,384
|
|
|
|
|
|
|
Cash dividends declared per common share
|
|
$
|
0.30
|
|
|
$
|
0.20
|
|
____________________________
|
(1) Earnings per share may not add due to rounding.
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Dollars in thousands, except share data)
|
(Unaudited)
|
|
|
|
January 17,
|
|
September 27,
|
|
|
|
2016
|
|
|
|
2015
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
7,100
|
|
|
$
|
17,743
|
|
Accounts and other receivables, net
|
|
|
51,673
|
|
|
|
47,975
|
|
Inventories
|
|
|
7,871
|
|
|
|
7,376
|
|
Prepaid expenses
|
|
|
20,365
|
|
|
|
16,240
|
|
Assets held for sale
|
|
|
19,359
|
|
|
|
15,516
|
|
Other current assets
|
|
|
3,018
|
|
|
|
3,106
|
|
Total current assets
|
|
|
109,386
|
|
|
|
107,956
|
|
Property and equipment, at cost
|
|
|
1,570,364
|
|
|
|
1,563,377
|
|
Less accumulated depreciation and amortization
|
|
|
(852,360
|
)
|
|
|
(835,114
|
)
|
Property and equipment, net
|
|
|
718,004
|
|
|
|
728,263
|
|
Intangible assets, net
|
|
|
14,552
|
|
|
|
14,765
|
|
Goodwill
|
|
|
149,012
|
|
|
|
149,027
|
|
Other assets, net
|
|
|
282,053
|
|
|
|
303,968
|
|
|
|
$
|
1,273,007
|
|
|
$
|
1,303,979
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current maturities of long-term debt
|
|
$
|
24,760
|
|
|
$
|
26,677
|
|
Accounts payable
|
|
|
43,995
|
|
|
|
32,137
|
|
Accrued liabilities
|
|
|
143,854
|
|
|
|
170,575
|
|
Total current liabilities
|
|
|
212,609
|
|
|
|
229,389
|
|
Long-term debt, net of current maturities
|
|
|
761,252
|
|
|
|
688,579
|
|
Other long-term liabilities
|
|
|
359,265
|
|
|
|
370,058
|
|
Stockholders’ (deficit) equity:
|
|
|
|
|
Preferred stock $0.01 par value, 15,000,000 shares authorized, none
issued
|
|
|
—
|
|
|
|
—
|
|
Common stock $0.01 par value, 175,000,000 shares authorized,
81,270,513 and 81,096,156 issued, respectively
|
|
|
813
|
|
|
|
811
|
|
Capital in excess of par value
|
|
|
409,607
|
|
|
|
402,986
|
|
Retained earnings
|
|
|
1,338,724
|
|
|
|
1,316,119
|
|
Accumulated other comprehensive loss
|
|
|
(137,830
|
)
|
|
|
(132,530
|
)
|
Treasury stock, at cost, 46,588,687 and 45,314,529 shares,
respectively
|
|
|
(1,671,433
|
)
|
|
|
(1,571,433
|
)
|
Total stockholders’ (deficit) equity
|
|
|
(60,119
|
)
|
|
|
15,953
|
|
|
|
$
|
1,273,007
|
|
|
$
|
1,303,979
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
|
2016
|
|
|
|
2015
|
|
Cash flows from operating activities:
|
|
|
|
|
Net earnings
|
|
$
|
33,221
|
|
|
$
|
35,835
|
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
28,514
|
|
|
|
27,370
|
|
Deferred finance cost amortization
|
|
|
823
|
|
|
|
661
|
|
Excess tax benefits from share-based compensation arrangements
|
|
|
(2,020
|
)
|
|
|
(14,533
|
)
|
Deferred income taxes
|
|
|
(2,128
|
)
|
|
|
973
|
|
Share-based compensation expense
|
|
|
4,088
|
|
|
|
3,885
|
|
Pension and postretirement expense
|
|
|
4,149
|
|
|
|
5,769
|
|
Losses (gains) on cash surrender value of company-owned life
insurance
|
|
|
2,466
|
|
|
|
(574
|
)
|
Gains on the sale of company-operated restaurants
|
|
|
(818
|
)
|
|
|
(850
|
)
|
Losses on the disposition of property and equipment
|
|
|
651
|
|
|
|
621
|
|
Impairment charges and other
|
|
|
446
|
|
|
|
766
|
|
Changes in assets and liabilities:
|
|
|
|
|
Accounts and other receivables
|
|
|
(4,204
|
)
|
|
|
3,999
|
|
Inventories
|
|
|
(495
|
)
|
|
|
(121
|
)
|
Prepaid expenses and other current assets
|
|
|
1,205
|
|
|
|
16,683
|
|
Accounts payable
|
|
|
7,386
|
|
|
|
(4,623
|
)
|
Accrued liabilities
|
|
|
(25,403
|
)
|
|
|
(20,063
|
)
|
Pension and postretirement contributions
|
|
|
(1,883
|
)
|
|
|
(6,880
|
)
|
Other
|
|
|
(1,089
|
)
|
|
|
(1,571
|
)
|
Cash flows provided by operating activities
|
|
|
44,909
|
|
|
|
47,347
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchases of property and equipment
|
|
|
(31,543
|
)
|
|
|
(19,885
|
)
|
Purchases of assets intended for sale and leaseback
|
|
|
(3,274
|
)
|
|
|
—
|
|
Proceeds from the sale and leaseback of assets
|
|
|
5,803
|
|
|
|
—
|
|
Proceeds from the sale of company-operated restaurants
|
|
|
1,021
|
|
|
|
1,174
|
|
Collections on notes receivable
|
|
|
441
|
|
|
|
5,050
|
|
Acquisition of franchise-operated restaurants
|
|
|
324
|
|
|
|
—
|
|
Other
|
|
|
(28
|
)
|
|
|
22
|
|
Cash flows used in investing activities
|
|
|
(27,256
|
)
|
|
|
(13,639
|
)
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings on revolving credit facilities
|
|
|
176,000
|
|
|
|
154,000
|
|
Repayments of borrowings on revolving credit facilities
|
|
|
(97,000
|
)
|
|
|
(98,000
|
)
|
Principal repayments on debt
|
|
|
(8,479
|
)
|
|
|
(5,279
|
)
|
Dividends paid on common stock
|
|
|
(10,592
|
)
|
|
|
(7,791
|
)
|
Proceeds from issuance of common stock
|
|
|
492
|
|
|
|
11,302
|
|
Repurchases of common stock
|
|
|
(100,000
|
)
|
|
|
(104,669
|
)
|
Excess tax benefits from share-based compensation arrangements
|
|
|
2,020
|
|
|
|
14,533
|
|
Change in book overdraft
|
|
|
9,295
|
|
|
|
423
|
|
Cash flows used in financing activities
|
|
|
(28,264
|
)
|
|
|
(35,481
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(32
|
)
|
|
|
3
|
|
Net decrease in cash and cash equivalents
|
|
|
(10,643
|
)
|
|
|
(1,770
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
17,743
|
|
|
|
10,578
|
|
Cash and cash equivalents at end of period
|
|
$
|
7,100
|
|
|
$
|
8,808
|
|
|
JACK IN THE BOX INC. AND SUBSIDIARIES
|
SUPPLEMENTAL INFORMATION
|
|
The following table presents certain income and expense items
included in our condensed consolidated statements of earnings as a
percentage of total revenues, unless otherwise indicated.
Percentages may not add due to rounding.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA
|
(Unaudited)
|
|
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
Company restaurant sales
|
|
75.0
|
%
|
|
75.1
|
%
|
Franchise rental revenues
|
|
14.8
|
%
|
|
14.8
|
%
|
Franchise royalties and other
|
|
10.2
|
%
|
|
10.1
|
%
|
Total revenues
|
|
100.0
|
%
|
|
100.0
|
%
|
Operating costs and expenses, net:
|
|
|
|
|
Company restaurant costs:
|
|
|
|
|
Food and packaging (1)
|
|
30.8
|
%
|
|
32.1
|
%
|
Payroll and employee benefits (1)
|
|
27.7
|
%
|
|
27.2
|
%
|
Occupancy and other (1)
|
|
22.0
|
%
|
|
21.3
|
%
|
Total company restaurant costs (1)
|
|
80.5
|
%
|
|
80.7
|
%
|
Franchise occupancy expenses (2)
|
|
74.9
|
%
|
|
75.5
|
%
|
Franchise support and other costs (3)
|
|
10.2
|
%
|
|
10.0
|
%
|
Selling, general and administrative expenses
|
|
14.0
|
%
|
|
13.5
|
%
|
Impairment and other charges, net
|
|
0.4
|
%
|
|
0.5
|
%
|
Gains on the sale of company-operated restaurants
|
|
(0.2
|
)%
|
|
(0.2
|
)%
|
Earnings from operations
|
|
13.3
|
%
|
|
13.5
|
%
|
Income tax rate (4)
|
|
37.6
|
%
|
|
36.1
|
%
|
____________________________
|
(1) As a percentage of company restaurant sales.
|
(2) As a percentage of franchise rental revenues.
|
(3) As a percentage of franchise royalties and other.
|
(4) As a percentage of earnings from continuing operations and
before income taxes.
|
|
The following table presents Jack in the Box and Qdoba company
restaurant sales, costs and margin, and restaurant costs and
margin as a percentage of the related sales. Percentages may not
add due to rounding.
|
|
SUPPLEMENTAL COMPANY RESTAURANT OPERATIONS DATA
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Sixteen Weeks Ended
|
|
|
January 17, 2016
|
|
January 18, 2015
|
Jack in the Box:
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
$
|
236,279
|
|
|
|
$
|
241,343
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
|
73,133
|
|
31.0
|
%
|
|
|
79,193
|
|
32.8
|
%
|
Payroll and employee benefits
|
|
|
65,689
|
|
27.8
|
%
|
|
|
66,743
|
|
27.7
|
%
|
Occupancy and other
|
|
|
48,171
|
|
20.4
|
%
|
|
|
48,631
|
|
20.2
|
%
|
Total company restaurant costs
|
|
$
|
186,993
|
|
79.1
|
%
|
|
$
|
194,567
|
|
80.6
|
%
|
Restaurant margin
|
|
$
|
49,286
|
|
20.9
|
%
|
|
$
|
46,776
|
|
19.4
|
%
|
Qdoba:
|
|
|
|
|
|
|
|
|
Company restaurant sales
|
|
$
|
116,942
|
|
|
|
$
|
110,553
|
|
|
Company restaurant costs:
|
|
|
|
|
|
|
|
|
Food and packaging
|
|
|
35,778
|
|
30.6
|
%
|
|
|
33,916
|
|
30.7
|
%
|
Payroll and employee benefits
|
|
|
32,218
|
|
27.6
|
%
|
|
|
28,936
|
|
26.2
|
%
|
Occupancy and other
|
|
|
29,528
|
|
25.3
|
%
|
|
|
26,400
|
|
23.9
|
%
|
Total company restaurant costs
|
|
$
|
97,524
|
|
83.4
|
%
|
|
$
|
89,252
|
|
80.7
|
%
|
Restaurant margin
|
|
$
|
19,418
|
|
16.6
|
%
|
|
$
|
21,301
|
|
19.3
|
%
|
|
The following table presents franchise revenues, costs and margin
in each period:
|
|
SUPPLEMENTAL FRANCHISE OPERATIONS DATA
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
|
2016
|
|
|
|
2015
|
|
Franchise rental revenues
|
|
$
|
69,738
|
|
|
$
|
69,446
|
|
|
|
|
|
|
Royalties
|
|
|
46,662
|
|
|
|
45,829
|
|
Franchise fees and other
|
|
|
1,202
|
|
|
|
1,450
|
|
Franchise royalties and other
|
|
|
47,864
|
|
|
|
47,279
|
|
Total franchise revenues
|
|
$
|
117,602
|
|
|
$
|
116,725
|
|
|
|
|
|
|
Rental expense
|
|
$
|
42,172
|
|
|
$
|
42,197
|
|
Depreciation and amortization
|
|
|
10,047
|
|
|
|
10,221
|
|
Franchise occupancy expenses
|
|
|
52,219
|
|
|
|
52,418
|
|
Franchise support and other costs
|
|
|
4,862
|
|
|
|
4,723
|
|
Total franchise costs
|
|
|
57,081
|
|
|
|
57,141
|
|
Franchise margin
|
|
$
|
60,521
|
|
|
$
|
59,584
|
|
Franchise margin as a % of franchise revenues
|
|
|
51.5
|
%
|
|
|
51.0
|
%
|
|
The following table provides information related to our operating
segments in each period:
|
|
SUPPLEMENTAL SEGMENT REPORTING INFORMATION
|
(Dollars in thousands)
|
(Unaudited)
|
|
|
|
Sixteen Weeks Ended
|
|
|
January 17,
|
|
January 18,
|
|
|
|
2016
|
|
|
|
2015
|
|
Revenues by segment:
|
|
|
|
|
Jack in the Box restaurant operations
|
|
$
|
347,583
|
|
|
$
|
351,951
|
|
Qdoba restaurant operations
|
|
|
123,240
|
|
|
|
116,670
|
|
Consolidated revenues
|
|
$
|
470,823
|
|
|
$
|
468,621
|
|
Earnings from operations by segment:
|
|
|
|
|
Jack in the Box restaurant operations
|
|
$
|
85,690
|
|
|
$
|
80,857
|
|
Qdoba restaurant operations
|
|
|
8,737
|
|
|
|
14,676
|
|
Shared services and unallocated costs
|
|
|
(32,731
|
)
|
|
|
(33,147
|
)
|
Gains on the sale of company-operated restaurants
|
|
|
818
|
|
|
|
850
|
|
Consolidated earnings from operations
|
|
|
62,514
|
|
|
|
63,236
|
|
Interest expense, net
|
|
|
8,175
|
|
|
|
5,213
|
|
Consolidated earnings from continuing operations and before income
taxes
|
|
$
|
54,339
|
|
|
$
|
58,023
|
|
Total depreciation expense by segment:
|
|
|
|
|
Jack in the Box restaurant operations
|
|
$
|
20,473
|
|
|
$
|
19,615
|
|
Qdoba restaurant operations
|
|
|
5,588
|
|
|
|
5,280
|
|
Shared services and unallocated costs
|
|
|
2,225
|
|
|
|
2,260
|
|
Consolidated depreciation expense
|
|
$
|
28,286
|
|
|
$
|
27,155
|
|
|
The following table summarizes the year-to-date changes in the
number and mix of Jack in the Box ("JIB") and Qdoba company and
franchise restaurants:
|
|
SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION
|
(Unaudited)
|
|
|
|
January 17, 2016
|
|
January 18, 2015
|
|
|
Company
|
|
Franchise
|
|
Total
|
|
Company
|
|
Franchise
|
|
Total
|
Jack in the Box:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
413
|
|
|
1,836
|
|
|
2,249
|
|
|
431
|
|
|
1,819
|
|
|
2,250
|
|
New
|
|
—
|
|
|
5
|
|
|
5
|
|
|
1
|
|
|
6
|
|
|
7
|
|
Refranchised
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
Acquired from franchisees
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Closed
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
|
(4
|
)
|
End of period
|
|
413
|
|
|
1,840
|
|
|
2,253
|
|
|
431
|
|
|
1,822
|
|
|
2,253
|
|
% of JIB system
|
|
18
|
%
|
|
82
|
%
|
|
100
|
%
|
|
19
|
%
|
|
81
|
%
|
|
100
|
%
|
% of consolidated system
|
|
56
|
%
|
|
84
|
%
|
|
77
|
%
|
|
58
|
%
|
|
85
|
%
|
|
78
|
%
|
Qdoba:
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
322
|
|
|
339
|
|
|
661
|
|
|
310
|
|
|
328
|
|
|
638
|
|
New
|
|
9
|
|
|
6
|
|
|
15
|
|
|
3
|
|
|
6
|
|
|
9
|
|
Closed
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(6
|
)
|
End of period
|
|
330
|
|
|
344
|
|
|
674
|
|
|
311
|
|
|
330
|
|
|
641
|
|
% of Qdoba system
|
|
49
|
%
|
|
51
|
%
|
|
100
|
%
|
|
49
|
%
|
|
51
|
%
|
|
100
|
%
|
% of consolidated system
|
|
44
|
%
|
|
16
|
%
|
|
23
|
%
|
|
42
|
%
|
|
15
|
%
|
|
22
|
%
|
Consolidated:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total system
|
|
743
|
|
|
2,184
|
|
|
2,927
|
|
|
742
|
|
|
2,152
|
|
|
2,894
|
|
% of consolidated system
|
|
25
|
%
|
|
75
|
%
|
|
100
|
%
|
|
26
|
%
|
|
74
|
%
|
|
100
|
%
|
CONTACT:
Jack in the Box Inc.
Investor Contact:
Carol
DiRaimo, (858) 571-2407
or
Media Contact:
Brian Luscomb,
(858) 571-2291
Jack in the Box (NASDAQ:JACK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Jack in the Box (NASDAQ:JACK)
Historical Stock Chart
From Sep 2023 to Sep 2024