Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from
continuing operations of $32.6 million, or $0.98 per diluted share,
for the fourth quarter ended October 2, 2016, compared with
$23.8 million, or $0.65 per diluted share, for the fourth quarter
of fiscal 2015. Fiscal 2016 earnings from continuing operations
totaled $126.3 million, or $3.70 per diluted share, compared with
$112.6 million, or $2.95 per diluted share in 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 $1.03 in the fourth
quarter of fiscal 2016 compared with $0.62 in the prior year
quarter. For fiscal year 2016, operating earnings per share were
$3.86 compared with $3.00 last year.
The fourth quarter and fiscal year ended October 2, 2016,
included 13 weeks and 53 weeks, respectively, as compared to 12
weeks and 52 weeks in the fourth quarter and fiscal year ended
September 27, 2015, respectively. The company estimates that
the extra week benefited diluted earnings per share by
approximately 9 cents in both the fourth quarter and fiscal
2016.
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.
13 Weeks Ended 12 Weeks Ended 53 Weeks Ended
52 Weeks Ended Oct. 2,2016
Sept. 27,2015
Oct. 2,2016
Sept. 27,2015
Diluted earnings per share fromcontinuing operations – GAAP $ 0.98
$ 0.65 $ 3.70 $ 2.95 Restructuring charges 0.05 0.00 0.19 0.00
(Gains) losses from refranchising 0.00 (0.02 ) (0.02 ) 0.05
Operating earnings per share – Non-GAAP $ 1.03 $ 0.62
$ 3.86 $ 3.00
During fiscal 2016, the company announced plans to reduce
general and administrative costs. A comprehensive review of its
organizational structure identified cost savings from workforce
reductions, relocation and consolidation of the Qdoba® corporate
support center, refranchising initiatives, and information
technology synergies across both brands. As a result, restructuring
charges of $2.3 million, or approximately $0.05 per diluted share,
were recorded during the fourth quarter. Restructuring charges for
fiscal year 2016 totaled $10.1 million, or approximately $0.19 per
diluted share. Charges consist primarily of employee severance pay
and facility closing costs. These charges are included in
“impairment and other charges, net” in the accompanying
consolidated statements of earnings.
Lenny Comma, chairman and chief executive officer, said,
“Operating earnings per share for the fourth quarter exceeded our
expectations, due primarily to a reduction in G&A costs
resulting from our restructuring initiatives, as well as lower
impairment charges and a lower tax rate. We were pleased that Jack
in the Box® system same-store sales outperformed sluggish industry
trends, and although sales and traffic growth at Qdoba were solid,
margins were hampered by the impact of new restaurant openings.
“Operating earnings per share for the year (excluding the
benefit of the 53rd week) grew more than 25 percent, the fifth
consecutive year of growth in excess of 20 percent.
“We are happy with the progress we made on our key strategic
initiatives during the year, as we made significant headway on
reducing our G&A, increased our borrowing capacity to support
our capital structure goals, and began implementing plans to
increase the franchise mix at Jack in the Box to over 90 percent of
the system.”
Increase in same-store sales:
13 Weeks Ended 12 Weeks Ended 53 Weeks
Ended 52 Weeks Ended Oct. 2,2016
Sept. 27,2015
Oct. 2,2016
Sept. 27,2015
Jack in the Box: Company 0.5% 4.1% 0.0% 5.1% Franchise 2.4% 6.9%
1.6% 7.0% System 2.0% 6.2% 1.2% 6.5% Qdoba: Company 1.2% 6.1% 1.7%
8.3% Franchise 0.4% 7.2% 1.1% 10.4% System 0.8% 6.6% 1.4% 9.3%
Jack in the Box system same-store sales increased 2.0 percent
for the quarter and exceeded the QSR sandwich segment by 1.3
percentage points for the comparable period, according to The NPD
Group’s SalesTrack® Weekly for the 13-week time period ended
October 2, 2016. Included in this segment are 16 of the top
QSR sandwich and burger chains in the country. Company same-store
sales increased 0.5 percent in the fourth quarter, with average
check up 3.5 percent.
Qdoba same-store sales increased 0.8 percent system-wide and 1.2
percent for company restaurants in the fourth quarter. Company
same-store sales reflected a 0.7 percent increase in transactions
as well as growth in catering sales.
Consolidated restaurant operating margin decreased by 30 basis
points to 19.7 percent of sales in the fourth quarter of 2016,
compared with 20.0 percent of sales in the year-ago quarter.
Restaurant operating margin for Jack in the Box company restaurants
increased 70 basis points to 21.0 percent of sales. The increase
was due primarily to favorable food and packaging costs, which were
partially offset by higher costs related to equipment upgrades,
maintenance and repair expenses, and minimum wage increases in
California that went into effect in January 2016. The decrease in
food and packaging costs as a percentage of sales resulted from the
benefit of commodity deflation of approximately 4.0 percent in the
quarter, favorable product mix changes and menu price increases.
Restaurant operating margin for Qdoba company restaurants decreased
220 basis points to 17.3 percent of sales. The decrease was due
primarily to costs associated with a greater number of new
restaurant openings, increased promotional activity, and higher
costs related to technology upgrades which more than offset the
sales growth and benefits from commodity deflation of approximately
3.4 percent in the quarter.
Franchise margin as a percentage of total franchise revenues
improved to 53.7 percent in the fourth quarter from 51.4 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 fourth quarter decreased by $6.3
million and was 12.1 percent of revenues as compared to 15.4
percent in the prior year quarter. Key items contributing to the
decrease were lower advertising costs at Qdoba due to the timing of
promotional activities and a $1.2 million decrease in pension and
postretirement benefits related to the sunsetting of the company's
qualified pension plan on December 31, 2015. In addition,
mark-to-market adjustments on investments supporting the company’s
non-qualified retirement plans positively impacted SG&A by $0.2
million in the fourth quarter of 2016 as compared to a negative
impact of $1.1 million in the fourth quarter of 2015, resulting in
a year-over-year decrease in SG&A of $1.3 million. These
decreases were partially offset by the impact of the 53rd week.
Interest expense, net, increased by $3.5 million in the fourth
quarter due to increased leverage and a higher effective interest
rate for 2016.
Capital Allocation
The company repurchased approximately 425,000 shares of its
common stock in the fourth quarter of 2016 at an average price of
$98.42 per share for an aggregate cost of $41.9 million. During
fiscal year 2016, the company repurchased approximately 3,876,000
shares at an average price of $75.29 per share, for an aggregate
cost of $291.9 million. As of the end of fiscal year 2016, the
company had $408.2 million remaining under stock-buyback programs
authorized by its Board of Directors, of which $108.2 million
expires in November 2017 and $300.0 million expires in November
2018.
As previously disclosed, the company made an accelerated pension
contribution of $80 million during the fourth quarter of 2016. This
tax-deductible contribution will decrease the company's future
G&A costs, as well as reduce, if not fully eliminate, pension
contributions over the next several years.
In addition, the company acquired 14 franchised Qdoba
restaurants in one market during the fourth quarter of 2016 for
approximately $20 million.
The company also announced today that on November 17, 2016, its
Board of Directors declared a quarterly cash dividend of $0.40 per
share on the company’s common stock, representing a 33 percent
increase from the previous quarterly dividend of $0.30 per share.
The dividend is payable on December 16, 2016, to shareholders of
record at the close of business on December 5, 2016.
Guidance
The following guidance and underlying assumptions reflect the
company’s current expectations for the first quarter and fiscal
year ending October 1, 2017. Fiscal 2017 is a 52-week year,
with 16 weeks in the first quarter, 12 weeks in each of the second,
third and fourth quarters. Fiscal 2016 was a 53-week year, with the
additional week occurring in the fourth quarter.
First quarter fiscal year 2017
guidance
- Same-store sales increase of
approximately 2.0 to 4.0 percent at Jack in the Box system
restaurants versus a 1.4 percent increase in the year-ago
quarter.
- Same-store sales of approximately flat
to up 1.0 percent at Qdoba company restaurants versus a 1.5 percent
increase in the year-ago quarter.
Fiscal year 2017
guidance
- Same-store sales increase of
approximately 2.0 to 3.0 percent at Jack in the Box system
restaurants.
- Same-store sales increase of
approximately 2.0 to 3.0 percent at Qdoba company restaurants.
- Commodity deflation of approximately
flat to down 1 percent for both Jack in the Box and Qdoba.
- Consolidated restaurant operating
margin of approximately 20.0 to 21.0 percent.
- SG&A as a percentage of revenues of
approximately 11.0 to 11.5 percent as compared to 12.7 percent in
fiscal 2016.
- Impairment and other charges as a
percentage of revenues of approximately 70 basis points, excluding
restructuring charges.
- Approximately 20 to 25 new Jack in the
Box restaurants opening system-wide, the majority of which will be
franchise locations.
- Approximately 60 to 70 new Qdoba
restaurants, of which approximately 40 are expected to be company
locations.
- Capital expenditures of $105 to $115
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 $4.55 to $4.75.
This guidance assumes share repurchases of approximately $408
million during the year, representing the amount remaining under
current Board authorizations.
Conference call
The company will host a conference call for financial analysts
and investors on Tuesday, November 22, 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 November 22.
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 approximately 700 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 reduce G&A; the company's ability to execute its
refranchising strategy; 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 the company's 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
SUBSIDIARIESRECONCILIATION 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.
13 Weeks Ended 12 Weeks Ended 53 Weeks Ended
52 Weeks Ended Oct. 2,2016
Sept. 27,2015
Oct. 2,2016
Sept. 27,2015
Diluted earnings per share fromcontinuing operations – GAAP $ 0.98
$ 0.65 $ 3.70 $ 2.95 Restructuring charges 0.05 0.00 0.19 0.00
(Gains) losses from refranchising 0.00 (0.02 ) (0.02 ) 0.05
Operating earnings per share – Non-GAAP $ 1.03 $ 0.62
$ 3.86 $ 3.00
JACK IN THE BOX INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
EARNINGS
(In thousands, except per share
data)
(Unaudited)
13 WeeksEnded
12 WeeksEnded
53 WeeksEnded
52 WeeksEnded
October 2, 2016 September 27, 2015
October 2, 2016 September 27, 2015
Revenues: Company restaurant sales $ 300,693 $ 265,408 $ 1,204,535
$ 1,156,863 Franchise rental revenues 57,689 52,666 232,907 226,702
Franchise royalties and other 40,037 35,994 161,889
156,752 398,419 354,068 1,599,331
1,540,317 Operating costs and expenses, net: Company
restaurant costs: Food and packaging 90,200 82,198 363,002 361,988
Payroll and employee benefits 83,516 71,654 334,470 313,302
Occupancy and other 67,814 58,421 264,158
246,023 Total company restaurant costs 241,530 212,273
961,630 921,313 Franchise occupancy expenses 41,677 39,281 170,152
170,102 Franchise support and other costs 3,568 3,773 15,991 15,688
Selling, general and administrative expenses 48,281 54,592 203,816
221,145 Impairment and other charges, net 4,459 3,689 19,057 11,757
(Gains) losses on the sale of company-operated restaurants (6 )
(1,214 ) (1,230 ) 3,139 339,509 312,394
1,369,416 1,343,144 Earnings from operations 58,910
41,674 229,915 197,173 Interest expense, net 8,382 4,866
31,081 18,803 Earnings from continuing
operations and before income taxes 50,528 36,808 198,834 178,370
Income taxes 17,967 13,030 72,564 65,769
Earnings from continuing operations 32,561 23,778 126,270
112,601 Losses from discontinued operations, net of income tax
benefit (580 ) (637 ) (2,197 ) (3,789 ) Net earnings $ 31,981
$ 23,141 $ 124,073 $ 108,812 Net
earnings per share - basic: Earnings from continuing operations $
1.00 $ 0.66 $ 3.74 $ 3.00 Losses from discontinued operations (0.02
) (0.02 ) (0.07 ) (0.10 ) Net earnings per share (1) $ 0.98
$ 0.64 $ 3.68 $ 2.89 Net earnings per share -
diluted: Earnings from continuing operations $ 0.98 $ 0.65 $ 3.70 $
2.95 Losses from discontinued operations (0.02 ) (0.02 ) (0.06 )
(0.10 ) Net earnings per share (1) $ 0.97 $ 0.63 $
3.63 $ 2.85 Weighted-average shares
outstanding: Basic 32,694 36,276 33,735 37,587 Diluted 33,085
36,822 34,146 38,215 Cash dividends declared per common
share $ 0.30 $ 0.30 $ 1.20 $ 1.00
____________________________
(1)
Earnings per share may not add due to rounding.
JACK IN THE BOX INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per
share data)
(Unaudited)
October 2, 2016 September
27, 2015 ASSETS Current assets: Cash $ 17,030 $ 17,743
Accounts and other receivables, net 73,360 47,975 Inventories 8,229
7,376 Prepaid expenses 40,398 16,240 Assets held for sale 14,259
15,516 Other current assets 2,129 3,106 Total current
assets 155,405 107,956 Property and equipment, at
cost: Land 117,166 112,991 Buildings 1,116,244 1,091,237 Restaurant
and other equipment 331,644 315,235 Construction in progress 40,522
43,914 1,605,576 1,563,377 Less accumulated
depreciation and amortization (886,526 ) (835,114 ) Property and
equipment, net 719,050 728,263 Intangible assets, net
14,042 14,765 Goodwill 166,046 149,027 Other assets, net 294,248
303,968 $ 1,348,791 $ 1,303,979
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities:
Current maturities of long-term debt $ 57,574 $ 26,677 Accounts
payable 40,736 32,137 Accrued liabilities 181,250 170,575
Total current liabilities 279,560 229,389
Long-term debt, net of current maturities 937,512 688,579 Other
long-term liabilities 348,925 370,058 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, 81,598,524 and 81,096,156 issued,
respectively 816 811 Capital in excess of par value 432,564 402,986
Retained earnings 1,399,721 1,316,119 Accumulated other
comprehensive loss (187,021 ) (132,530 ) Treasury stock, at cost,
49,190,992 and 45,314,529 shares, respectively (1,863,286 )
(1,571,433 ) Total stockholders’ (deficit) equity (217,206 ) 15,953
$ 1,348,791 $ 1,303,979
JACK IN THE BOX INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
53 WeeksEnded
52 WeeksEnded
October 2, 2016 September 27, 2015 Cash
flows from operating activities: Net earnings $ 124,073 $ 108,812
Adjustments to reconcile net earnings to net cash provided by
operating activities: Depreciation and amortization 92,844 89,468
Deferred finance cost amortization 2,736 2,309 Excess tax benefits
from share-based compensation arrangements (7,461 ) (18,602 )
Deferred income taxes 34,973 (3,191 ) Share-based compensation
expense 11,455 12,420 Pension and postretirement expense 13,484
18,749 Gains on cash surrender value of company-owned life
insurance (5,365 ) 1,240 (Gains) losses on the sale of
company-operated restaurants (1,230 ) 3,139 Losses on the
disposition of property and equipment 2,654 1,847 Impairment
charges and other 4,759 6,815 Changes in assets and liabilities:
Accounts and other receivables (28,181 ) (82 ) Inventories (713 )
105 Prepaid expenses and other current assets (15,367 ) 35,255
Accounts payable 2,225 2,281 Accrued liabilities 8,662 798 Pension
and postretirement contributions (101,052 ) (25,374 ) Other (4,314
) (9,114 ) Cash flows provided by operating activities 134,182
226,875 Cash flows from investing activities:
Purchases of property and equipment (96,615 ) (86,226 ) Purchases
of assets intended for sale and leaseback (9,785 ) (10,396 )
Proceeds from the sale and leaseback of assets 17,123 — Proceeds
from the sale of company-operated restaurants 1,439 3,951
Collections on notes receivable 3,555 5,917 Acquisition of
franchise-operated restaurants (19,816 ) — Other (299 ) 2,281
Cash flows used in investing activities (104,398 ) (84,473 )
Cash flows from financing activities: Borrowings on revolving
credit facilities 705,000 857,000 Repayments of borrowings on
revolving credit facilities (817,578 ) (768,000 ) Proceeds from
issuance of debt 417,578 300,000 Principal repayments on debt
(26,154 ) (198,397 ) Debt issuance costs (2,385 ) (2,030 )
Dividends paid on common stock (40,295 ) (37,390 ) Proceeds from
issuance of common stock 10,564 15,170 Repurchases of common stock
(284,645 ) (320,163 ) Excess tax benefits from share-based
compensation arrangements 7,461 18,602 Cash flows
used in financing activities (30,454 ) (135,208 ) Effect of
exchange rate changes on cash (43 ) (29 ) Net (decrease) increase
in cash (713 ) 7,165 Cash at beginning of period 17,743
10,578 Cash at end of period $ 17,030 $ 17,743
JACK IN THE BOX INC. AND
SUBSIDIARIESSUPPLEMENTAL INFORMATION
The following table presents certain income and expense items
included in our consolidated statements of earnings as a percentage
of total revenues, unless otherwise indicated. Percentages may not
add due to rounding.
CONSOLIDATED STATEMENTS OF EARNINGS
DATA
(Unaudited)
13 WeeksEnded
12 WeeksEnded
53 WeeksEnded
52 WeeksEnded
October 2, 2016 September 27, 2015
October 2, 2016 September 27, 2015
Revenues: Company restaurant sales 75.5 % 75.0 % 75.3 % 75.1 %
Franchise rental revenues 14.5 % 14.9 % 14.6 % 14.7 % Franchise
royalties and other 10.0 % 10.2 % 10.1 % 10.2 % Total revenues
100.0 % 100.0 % 100.0 % 100.0 % Operating costs and expenses, net:
Company restaurant costs: Food and packaging (1) 30.0 % 31.0 % 30.1
% 31.3 % Payroll and employee benefits (1) 27.8 % 27.0 % 27.8 %
27.1 % Occupancy and other (1) 22.6 % 22.0 % 21.9 % 21.3 % Total
company restaurant costs (1) 80.3 % 80.0 % 79.8 % 79.6 % Franchise
occupancy expenses (2) 72.2 % 74.6 % 73.1 % 75.0 % Franchise
support and other costs (3) 8.9 % 10.5 % 9.9 % 10.0 % Selling,
general and administrative expenses 12.1 % 15.4 % 12.7 % 14.4 %
Impairment and other charges, net 1.1 % 1.0 % 1.2 % 0.8 % (Gains)
losses on the sale of company-operated restaurants 0.0 % (0.3 )%
(0.1 )% 0.2 % Earnings from operations 14.8 % 11.8 % 14.4 % 12.8 %
Income tax rate (4) 35.6 % 35.4 % 36.5 % 36.9 %
____________________________ (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)
13 Weeks Ended 12 Weeks Ended
53 Weeks Ended 52 Weeks Ended
October 2, 2016 September 27, 2015 October 2,
2016 September 27, 2015 Jack in the Box:
Company restaurant
sales $ 193,639 $ 176,739 $ 789,040 $ 782,525 Company restaurant
costs: Food and packaging 56,396 29.1 % 55,025 31.1 % 235,538 29.9
% 247,931 31.7 % Payroll and employee benefits 55,275 28.5 % 48,371
27.4 % 223,019 28.3 % 215,598 27.6 % Occupancy and other 41,347
21.4 % 37,484 21.2 % 162,869 20.6 % 157,281
20.1 % Total company restaurant costs 153,018 79.0 %
140,880 79.7 % 621,426 78.8 % 620,810 79.3 %
Restaurant margin $ 40,621 21.0 % $ 35,859 20.3 % $
167,614 21.2 % $ 161,715 20.7 %
Qdoba: Company
restaurant sales $ 107,054 $ 88,669 $ 415,495 $ 374,338 Company
restaurant costs: Food and packaging 33,804 31.6 % 27,173 30.6 %
127,464 30.7 % 114,057 30.5 % Payroll and employee benefits 28,241
26.4 % 23,283 26.3 % 111,451 26.8 % 97,704 26.1 % Occupancy and
other 26,467 24.7 % 20,937 23.6 % 101,289 24.4
% 88,742 23.7 % Total company restaurant costs 88,512
82.7 % 71,393 80.5 % 340,204 81.9 % 300,503
80.3 % Restaurant margin $ 18,542 17.3 % $ 17,276
19.5 % $ 75,291 18.1 % $ 73,835 19.7 %
The following table presents franchise revenues, costs and
margin in each period:
SUPPLEMENTAL FRANCHISE OPERATIONS
DATA
(Dollars in thousands)
(Unaudited)
13 WeeksEnded
12 WeeksEnded
53 WeeksEnded
52 WeeksEnded
October 2, 2016 September 27, 2015
October 2, 2016 September 27, 2015
Franchise rental revenues $ 57,689 $ 52,666 $ 232,907 $ 226,702
Royalties 39,176 35,100 158,514 152,759 Franchise fees and
other 861 894 3,375 3,993 Franchise
royalties and other 40,037 35,994 161,889
156,752 Total franchise revenues 97,726 88,660
394,796 383,454 Rental expense 34,025 31,638
137,808 136,974 Depreciation and amortization 7,652 7,643
32,344 33,128 Franchise occupancy expenses
41,677 39,281 170,152 170,102 Franchise support and other costs
3,568 3,773 15,991 15,688 Total
franchise costs 45,245 43,054 186,143 185,790
Franchise margin $ 52,481 $ 45,606 $ 208,653
$ 197,664 Franchise margin as a % of franchise
revenues 53.7 % 51.4 % 52.9 % 51.5 %
The following table provides information related to our
operating segments in each period:
SUPPLEMENTAL SEGMENT REPORTING
INFORMATION
(In thousands)
(Unaudited)
13 WeeksEnded
12 WeeksEnded
53 WeeksEnded
52 WeeksEnded
October 2, 2016 September 27, 2015
October 2, 2016 September 27, 2015
Revenues by segment: Jack in the Box restaurant operations $
286,120 $ 260,442 $ 1,162,258 $ 1,145,176 Qdoba restaurant
operations 112,299 93,626 437,073 395,141
Consolidated revenues $ 398,419 $ 354,068 $
1,599,331 $ 1,540,317
Earnings from operations by
segment: Jack in the Box restaurant operations $ 71,982 $
57,707 $ 290,346 $ 265,230 Qdoba restaurant operations 13,718 9,999
47,250 47,264 Shared services and unallocated costs (26,796 )
(27,246 ) (108,911 ) (112,182 ) Gains (losses) on the sale of
company-operated restaurants 6 1,214 1,230
(3,139 ) Consolidated earnings from operations 58,910 41,674
229,915 197,173 Interest expense, net 8,382 4,866
31,081 18,803 Consolidated earnings from continuing
operations and before income taxes $ 50,528 $ 36,808
$ 198,834 $ 178,370
Total depreciation expense by
segment: Jack in the Box restaurant operations $ 15,878 $
15,546 $ 66,287 $ 64,597 Qdoba restaurant operations 4,903 3,924
19,306 17,103 Shared services and unallocated costs 1,553
1,633 6,489 7,078 Consolidated depreciation
expense $ 22,334 $ 21,103 $ 92,082 $ 88,778
The following table summarizes the changes in the number and mix
of Jack in the Box ("JIB") and Qdoba company and franchise
restaurants in each fiscal year:
SUPPLEMENTAL RESTAURANT ACTIVITY
INFORMATION
(Unaudited)
2016 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 4 12 16 2 16
18 Refranchised (1 ) 1 — (21 ) 21 — Acquired from franchisees 1 (1
) — 7 (7 ) — Closed — (10 ) (10 ) (6 ) (13 ) (19 ) End of
period 417 1,838 2,255 413 1,836
2,249 % of JIB system 18 % 82 % 100 % 18 % 82 % 100 %
Qdoba: Beginning of year 322 339 661 310 328 638 New 35 18
53 17 22 39 Acquired from franchisees 14 (14 ) — — — — Closed (4 )
(11 ) (15 ) (5 ) (11 ) (16 ) End of period 367 332
699 322 339 661 % of Qdoba system 53 %
47 % 100 % 49 % 51 % 100 %
Consolidated:
Total system end of period 784
2,170 2,954 735 2,175 2,910 % of
consolidated system 27 % 73 % 100 % 25 % 75 % 100 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161121006089/en/
Jack in the Box Inc.Investor Contact:Carol DiRaimo, (858)
571-2407orMedia Contact:Brian Luscomb, (858) 571-2291
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