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Jack in the Box Inc. Reports Fourth Quarter FY 2019 Earnings; Issues Fiscal 2020 Guidance; Announces Additional Share Repurchase Authorization; Declares Quarterly Cash Dividend

SAN DIEGO--(BUSINESS WIRE)--Nov. 20, 2019-- Jack in the Box Inc. (NASDAQ: JACK) today reported financial results for the fourth quarter and fiscal year ended September 29, 2019.

Increase in same-store sales:

 

12 Weeks Ended

 

52 Weeks Ended

 

September 29,
2019

 

September 30,
2018

 

September 29,
2019

 

September 30,
2018

Company

3.5%

 

0.8%

 

1.7%

 

0.6%

Franchise

3.0%

 

0.4%

 

1.3%

 

0.1%

System

3.0%

 

0.5%

 

1.3%

 

0.1%

Jack in the Box® system same-store sales increased 3.0 percent in the fourth quarter. Company same-store sales increased 3.5 percent, driven by average check growth of 2.8 percent and transaction growth of 0.7 percent.

Lenny Comma, chairman and chief executive officer, said, "Our 2019 operating results demonstrate the momentum in the Jack in the Box brand, with same-store sales improving to the strongest performance in four years. We have now achieved our ninth consecutive year of positive same-store sales.

"We plan to build on these results by improving the guest experience through operations consistency and reducing wait times, serving indulgent food our guests crave, and targeting investments designed to maximize our returns. With our refranchising initiative complete, we have a renewed focus on expanding unit growth. We look forward to sharing additional details about these initiatives on tomorrow morning's earnings call."

Earnings from continuing operations were $22.0 million, or $0.86 per diluted share, for the fourth quarter of fiscal 2019 compared with $18.3 million, or $0.68 per diluted share, for the fourth quarter of fiscal 2018. In connection with the refinancing of the company's senior credit facility, the company terminated its existing interest rate swaps in the third quarter, resulting in a pre-tax charge of $23.6 million, and wrote off unamortized deferred financing fees related to this credit facility in the fourth quarter, resulting in a loss of approximately $2.8 million. These are reflected in interest expense, net, and collectively have an impact of $0.08 per diluted share in the fourth quarter and $0.64 for fiscal 2019 after the associated tax benefits. Fiscal 2019 earnings from continuing operations totaled $91.7 million, or $3.52 per diluted share, compared with $104.3 million, or $3.62 per diluted share in fiscal 2018.

Operating Earnings Per Share(1), a non-GAAP measure, were $0.95 in the fourth quarter of fiscal 2019 compared with $0.77 in the prior year quarter. For fiscal year 2019, operating earnings per share were $4.35 compared with $3.79 last year. A reconciliation of non-GAAP Operating Earnings Per Share to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.

 

12 Weeks Ended

 

52 Weeks Ended

 

September 29,

2019

 

September 30,

2018

 

September 29,

2019

 

September 30,

2018

Diluted earnings per share from continuing operations - GAAP

$0.86

 

$0.68

 

$3.52

 

$3.62

Loss on early termination of interest rate swaps and debt extinguishment

0.08

 

 

0.64

 

Gains on the sale of company-operated restaurants

(0.03)

 

(0.09)

 

(0.04)

 

(1.16)

Restructuring charges

0.05

 

0.17

 

0.24

 

0.27

Non-cash impact of the Tax Cuts and Jobs Act

 

0.02

 

 

1.13

Excess tax benefits from share-based compensation arrangements

 

 

 

(0.07)

Operating Earnings Per Share – non-GAAP

$0.95

 

$0.77

 

$4.35

 

$3.79

In the first quarter of fiscal 2018, the company entered into a definitive agreement to sell Qdoba Restaurant Corporation ("Qdoba"), a wholly owned subsidiary of the company, to certain funds managed by affiliates of Apollo Global Management, LLC. The transaction closed on March 21, 2018, and operating results for Qdoba are included in discontinued operations for all periods presented. However, the company did not allocate any general and administrative shared services expenses to discontinued operations prior to the sale.

Adjusted EBITDA(2), a non-GAAP measure, was $66.9 million in the fourth quarter of fiscal 2019 compared with $54.0 million for the prior year quarter. For fiscal year 2019, Adjusted EBITDA was $269.0 million, compared with $264.2 million in fiscal year 2018.

Restaurant-Level Margin(3), a non-GAAP measure, decreased 190 basis points to 24.2 percent of company restaurant sales in the fourth quarter of fiscal 2019 from 26.1 percent a year ago. The decrease was due primarily to wage and commodity inflation. Food and packaging costs, as a percentage of company restaurant sales, increased 30 basis points in the quarter driven by higher ingredient costs, which were partially offset by menu price increases. Commodity costs increased 4.4 percent in the quarter as compared with the prior year.

Effective fiscal 2019, the company adopted the new U.S. GAAP revenue recognition standard (Topic 606) using the modified retrospective method, and therefore no prior periods have been restated. The new revenue standard resulted in an increase to franchise revenues and a corresponding increase to franchise expenses primarily related to the reclassification of marketing fees received from franchisees. In addition, certain amounts previously netted in general and administrative expenses are now reflected as franchise revenues and expenses. Although the prior year results have not been restated for the impact of this accounting change, a reconciliation to a recast statement of earnings is included within the "Supplemental Information" section of this release.

Franchise-Level Margin(3), a non-GAAP measure,as a percentage of total franchise revenues, was 41.1 percent in the fourth quarter of fiscal 2019. This compared with 58.6 percent in the prior year quarter, or 41.3 percent using recast 2018 figures as though Topic 606 had been applied retrospectively to the prior year.

Also effective fiscal 2019, the company adopted the new U.S. GAAP pension standard (Topic 715) and began presenting certain pension cost components in Other pension and post-retirement expenses, net, in its consolidated statements of earnings. The prior year consolidated statement of earnings was adjusted to conform with this new presentation.

SG&A expenses for the fourth quarter of fiscal 2019 decreased by $14.2 million and were 4.7 percent of revenues compared with 13.8 percent in the prior year quarter, or 10.4 percent using recast 2018 figures. Advertising costs, which are included in SG&A, were $4.0 million in the fourth quarter compared with $6.8 million in the prior year quarter. The $2.8 million decrease in advertising costs was due to an incremental contribution funded by the company in the prior year quarter. The $11.4 million decrease in G&A, which excludes advertising, was primarily driven by:

  • a $6.5 million decrease related to the reduction of an unfavorable jury verdict in a wrongful termination lawsuit delivered in the third quarter;
  • a $2.2 million decrease related to technology fees and costs netted in G&A in the prior year, which are now reflected as franchise revenues and expenses in the consolidated statement of earnings in 2019;
  • a $1.6 million decrease in insurance related to workers' compensation and general liability;
  • a $1.3 million decrease in incentive compensation; and
  • mark-to-market adjustments on investments supporting the company's non-qualified retirement plans resulting in a $0.3 million year-over-year decrease in G&A.

As a percentage of system-wide sales, G&A, which excludes advertising, was 0.8 percent in the fourth quarter of fiscal 2019 compared with 2.2 percent in the 2018 quarter, or 2.0 percent using recast 2018 figures. Full-year G&A for fiscal 2019 was 1.6 percent of system-wide sales, compared with 2.2 percent for fiscal 2018, or 2.0 percent using recast 2018 figures.

Impairment and other charges, net, decreased $1.1 million in the fourth quarter. Restructuring charges, which are included in Impairment and other charges, net, in the accompanying consolidated statements of earnings, decreased $4.1 million in the quarter. This decrease was partially offset by $3.5 million related to the write-off of development costs associated with a discontinued technology project.

Interest expense, net, increased by $6.3 million in the fourth quarter which was due in part to the $2.8 million write-off of unamortized deferred financing fees related to the refinancing of the company's senior credit facility. The remaining increase was primarily due to higher debt balances.

The effective tax rate for the fourth quarter of fiscal 2019 was 27.4 percent, which was higher than 24.1 percent in the prior year quarter primarily due to the establishment of valuation reserves on state tax credits in the quarter. The full-year effective tax rate was 20.8 percent, or 23.8 percent excluding the impact of the termination of interest rate swaps in the third quarter and loss on debt extinguishment in the fourth quarter.

Capital Allocation

The company repurchased approximately 1.4 million shares of its common stock in the fourth quarter of fiscal 2019 at an average price of $87.33 per share for an aggregate cost of $125.3 million and has repurchased approximately 0.7 million shares of its common stock quarter-to-date in the first quarter of fiscal 2020. This leaves approximately $109 million remaining under share repurchase programs authorized by its Board of Directors that expire in November 2020. On November 15, 2019, the company's Board of Directors authorized an additional $100 million share repurchase program that expires in November 2021.

The company also announced today that on November 15, 2019, its Board of Directors declared a cash dividend of $0.40 per share on the company's common stock. The dividend is payable on December 20, 2019, to shareholders of record at the close of business on December 5, 2019.

Guidance

This release includes forward-looking guidance for certain non-GAAP financial measures, including Restaurant-Level Margin and Adjusted EBITDA. The company is unable without unreasonable effort to provide reconciliations of these forward-looking non-GAAP measures.

Fiscal Year 2020 Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the fiscal year ending September 27, 2020. Fiscal 2020 and fiscal 2019 are 52-week years, with 16 weeks in the first quarter, and 12 weeks in each of the second, third and fourth quarters.

  • System same-store sales growth of approximately 1.5 to 3.0 percent.
  • Restaurant-Level Margin of approximately 25.0 percent of company restaurant sales, which includes expected commodity cost inflation of approximately 4.0 percent, and high-single-digit wage inflation.
  • SG&A as a percentage of revenues of approximately 8.0 to 8.5 percent.
  • G&A as a percentage of system-wide sales of approximately 1.7 to 1.9 percent.
  • Approximately 25 to 35 new restaurants opening system-wide, substantially all of which will be franchise locations.
  • Capital expenditures and tenant improvement allowances of approximately $45 to $55 million, collectively, excluding purchases of assets held for sale and leaseback.
  • Tax rate of approximately 26.0 to 27.0 percent, subject to fluctuations arising from the impact of excess tax benefits from share-based compensation arrangements.
  • Adjusted EBITDA of approximately $265 to $275 million.

Other Items

In its upcoming fiscal 2019 Form 10-K, the company expects to report a material weakness in internal controls. The weakness relates to general information technology controls over certain information technology systems that support the company's financial reporting processes. As of the date of this release, there have been no misstatements identified in the financial statements as a result of these deficiencies, and the company expects to timely file its Form 10-K. Please refer to the upcoming fiscal 2019 Form 10-K for more information.

In fiscal 2020, the company will adopt the new lease accounting standard (Topic 842). The company expects this standard will have a material impact on its consolidated balance sheet upon adoption, recognizing liabilities of approximately $950 million and corresponding assets of approximately $900 million. There is no material impact to net earnings or cash flows expected; however, franchise revenues and franchise expenses are each expected to increase by approximately $5 million in 2020. Please refer to the upcoming fiscal 2019 Form 10-K for more information.

Conference Call

The company will host a conference call for financial analysts and investors on Thursday, November 21, 2019, 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 21, 2019.

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. For more information on Jack in the Box, including franchising opportunities, visit www.jackinthebox.com.

___________________________________________________________

(1) Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding gains or losses on the sale of company-operated restaurants, restructuring charges, loss on early termination of interest rate swaps, loss on early extinguishment of debt, the non-cash impact of the Tax Cuts and Jobs Act in fiscal year 2018, and the excess tax benefits from share-based compensation arrangements. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

(2) Adjusted EBITDA represents net earnings on a GAAP basis excluding earnings or losses from discontinued operations, income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, impairment and other charges, net, depreciation and amortization, and the amortization of franchise tenant improvement allowances and other. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

(3) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “should,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company's ability to reduce G&A and operate efficiently; 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, risks relating to expansion into new markets and successful franchisee development; litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the company's brand; risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; 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

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

(Unaudited)

 

 

12 Weeks Ended

 

52 Weeks Ended

 

September 29,
2019

 

September 30,
2018

 

September 29,
2019

 

September 30,
2018

Revenues:

 

 

 

 

 

 

 

Company restaurant sales

$

78,859

 

 

$

76,909

 

 

$

336,807

 

 

$

448,058

 

Franchise rental revenues

63,920

 

 

62,365

 

 

272,815

 

 

259,047

 

Franchise royalties and other

38,971

 

 

38,198

 

 

169,811

 

 

162,585

 

Franchise contributions for advertising and other services(1)

39,485

 

 

0

 

 

170,674

 

 

0

 

221,235

 

 

177,472

 

 

950,107

 

 

869,690

 

Operating costs and expenses, net:

 

 

 

 

 

 

 

Company restaurant costs (excluding depreciation and amortization):

 

 

 

 

 

 

 

Food and packaging

23,349

 

 

22,499

 

 

97,699

 

 

128,947

 

Payroll and employee benefits

23,995

 

 

22,178

 

 

100,158

 

 

129,089

 

Occupancy and other

12,448

 

 

12,195

 

 

50,613

 

 

71,803

 

Total company restaurant costs

59,792

 

 

56,872

 

 

248,470

 

 

329,839

 

Franchise occupancy expenses (excluding depreciation and amortization)

38,882

 

 

38,332

 

 

166,584

 

 

158,319

 

Franchise support and other costs

3,773

 

 

3,699

 

 

12,110

 

 

11,593

 

Franchise advertising and other services expenses(1)

41,696

 

 

0

 

 

178,093

 

 

0

 

Selling, general and administrative expenses(2)

10,300

 

 

24,490

 

 

76,357

 

 

104,816

 

Depreciation and amortization

12,536

 

 

13,116

 

 

55,181

 

 

59,422

 

Impairment and other charges, net

6,888

 

 

7,969

 

 

12,455

 

 

18,418

 

Gains on the sale of company-operated restaurants

(1,147

)

 

(3,076

)

 

(1,366

)

 

(46,164

)

 

172,720

 

 

141,402

 

 

747,884

 

 

636,243

 

Earnings from operations

48,515

 

 

36,070

 

 

202,223

 

 

233,447

 

Other pension and post-retirement expenses, net(2)

343

 

 

423

 

 

1,484

 

 

1,833

 

Interest expense, net

17,823

 

 

11,481

 

 

84,967

 

 

45,547

 

Earnings from continuing operations and before income taxes

30,349

 

 

24,166

 

 

115,772

 

 

186,067

 

Income taxes

8,326

 

 

5,830

 

 

24,025

 

 

81,728

 

Earnings from continuing operations

22,023

 

 

18,336

 

 

91,747

 

 

104,339

 

Earnings (losses) from discontinued operations, net of income taxes

38

 

 

(2,067

)

 

2,690

 

 

17,032

 

Net earnings

$

22,061

 

 

$

16,269

 

 

$

94,437

 

 

$

121,371

 

 

 

 

 

 

 

 

 

Net earnings per share - basic:

 

 

 

 

 

 

 

Earnings from continuing operations

$

0.86

 

 

$

0.68

 

 

$

3.55

 

 

$

3.66

 

Earnings (losses) from discontinued operations

 

 

(0.08

)

 

0.10

 

 

0.60

 

Net earnings per share (3)

$

0.86

 

 

$

0.61

 

 

$

3.66

 

 

$

4.26

 

Net earnings per share - diluted:

 

 

 

 

 

 

 

Earnings from continuing operations

$

0.86

 

 

$

0.68

 

 

$

3.52

 

 

$

3.62

 

Earnings (losses) from discontinued operations

 

 

(0.08

)

 

0.10

 

 

0.59

 

Net earnings per share (3)

$

0.86

 

 

$

0.60

 

 

$

3.62

 

 

$

4.21

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

25,456

 

 

26,866

 

 

25,823

 

 

28,499

 

Diluted

25,721

 

 

27,148

 

 

26,068

 

 

28,807

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

$

0.40

 

 

$

0.40

 

 

$

1.60

 

 

$

1.60

 

(1) In 2019, the company began presenting franchise advertising and other services revenue and costs on separate line items in accordance with the new Revenue Recognition standards. The prior year consolidated statement of earnings was not adjusted as the standard was adopted on a modified retrospective basis.

(2) In 2019, the company began presenting all components of defined benefit expense, except service cost in Other pension and post-retirement expenses, net in its consolidated statements of earnings in accordance with Topic 715. The prior year consolidated statement of earnings was adjusted to conform with this new presentation.

(3) 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)

 

 

September 29,
2019

 

September 30,
2018

ASSETS

 

 

 

Current assets:

 

 

 

Cash

$

125,536

 

 

$

2,705

 

Restricted cash

26,025

 

 

0

 

Accounts and other receivables, net

45,235

 

 

57,422

 

Inventories

1,776

 

 

1,858

 

Prepaid expenses

9,015

 

 

14,443

 

Current assets held for sale

16,823

 

 

13,947

 

Other current assets

2,718

 

 

4,598

 

Total current assets

227,128

 

 

94,973

 

Property and equipment, at cost:

 

 

 

Land

116,070

 

 

105,155

 

Buildings

927,337

 

 

934,360

 

Restaurant and other equipment

125,176

 

 

129,701

 

Construction in progress

7,658

 

 

20,815

 

 

1,176,241

 

 

1,190,031

 

Less accumulated depreciation and amortization

(784,307

)

 

(770,362

)

Property and equipment, net

391,934

 

 

419,669

 

Other assets:

 

 

 

Intangible assets, net

425

 

 

600

 

Goodwill

46,747

 

 

46,749

 

Deferred tax assets

85,564

 

 

62,140

 

Other assets, net

206,685

 

 

199,266

 

Total other assets

339,421

 

 

308,755

 

 

$

958,483

 

 

$

823,397

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

Current liabilities:

 

 

 

Current maturities of long-term debt

$

774

 

 

$

31,828

 

Accounts payable

37,066

 

 

44,970

 

Accrued liabilities

120,083

 

 

106,922

 

Total current liabilities

157,923

 

 

183,720

 

Long-term liabilities:

 

 

 

Long-term debt, net of current maturities

1,274,374

 

 

1,037,927

 

Other long-term liabilities

263,770

 

 

193,449

 

Total long-term liabilities

1,538,144

 

 

1,231,376

 

Stockholders’ deficit:

 

 

 

Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued

0

 

 

0

 

Common stock $0.01 par value, 175,000,000 shares authorized, 82,159,002 and 82,061,661 issued, respectively

822

 

 

821

 

Capital in excess of par value

480,322

 

 

470,826

 

Retained earnings

1,577,034

 

 

1,561,353

 

Accumulated other comprehensive loss

(140,006

)

 

(94,260

)

Treasury stock, at cost, 57,760,573 and 56,325,632 shares, respectively

(2,655,756

)

 

(2,530,439

)

Total stockholders’ deficit

(737,584

)

 

(591,699

)

 

$

958,483

 

 

$

823,397

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

52 Weeks Ended

 

September 29,
2019

 

September 30,
2018

Cash flows from operating activities:

 

 

 

Net earnings

$

94,437

 

 

$

121,371

 

Earnings from discontinued operations

2,690

 

 

17,032

 

Earnings from continuing operations

91,747

 

 

104,339

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

Depreciation and amortization

55,181

 

 

59,422

 

Franchise tenant improvement allowance amortization and other

1,983

 

 

862

 

Amortization of debt issuance costs

3,121

 

 

2,803

 

Loss on debt extinguishment

2,757

 

 

0

 

Loss on interest rate swap termination

23,551

 

 

0

 

Excess tax benefits from share-based compensation arrangements

(113

)

 

(2,031

)

Deferred income taxes

4,100

 

 

25,352

 

Share-based compensation expense

8,074

 

 

9,146

 

Pension and postretirement expense

1,484

 

 

2,324

 

Gains on cash surrender value of company-owned life insurance

(4,475

)

 

(2,280

)

Gains on the sale of company-operated restaurants

(1,366

)

 

(46,164

)

(Gains) losses on the disposition of property and equipment

(6,244

)

 

1,627

 

Impairment charges and other

5,414

 

 

2,505

 

Changes in assets and liabilities, excluding acquisitions and dispositions:

 

 

 

Accounts and other receivables

3,504

 

 

24,220

 

Inventories

82

 

 

1,587

 

Prepaid expenses and other current assets

8,728

 

 

(9,432

)

Accounts payable

4,524

 

 

4,890

 

Accrued liabilities

(7,505

)

 

(38,329

)

Pension and postretirement contributions

(6,194

)

 

(5,467

)

Franchise tenant improvement allowance disbursements

(10,593

)

 

(14,893

)

Other

(9,355

)

 

(16,426

)

Cash flows provided by operating activities

168,405

 

 

104,055

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

(47,649

)

 

(37,842

)

Proceeds from the sale and leaseback of assets

4,447

 

 

9,336

 

Proceeds from the sale of company-operated restaurants

1,280

 

 

26,486

 

Collections on notes receivable

16,759

 

 

54,453

 

Proceeds from the sale of property and equipment

9,714

 

 

10,259

 

Other

1,630

 

 

2,969

 

Cash flows (used in) provided by investing activities

(13,819

)

 

65,661

 

Cash flows from financing activities:

 

 

 

Borrowings on revolving credit facilities

229,798

 

 

757,100

 

Repayments of borrowings on revolving credit facilities

(960,220

)

 

(523,700

)

Proceeds from issuance of debt

1,300,000

 

 

0

 

Principal repayments on debt

(337,150

)

 

(304,607

)

Debt issuance costs

(34,122

)

 

(1,366

)

Payments related to termination of interest rate swaps

(23,551

)

 

0

 

Dividends paid on common stock

(41,179

)

 

(45,412

)

Proceeds from issuance of common stock

1,231

 

 

7,959

 

Repurchases of common stock

(137,654

)

 

(325,634

)

Payroll tax payments for equity award issuances

(2,883

)

 

(7,719

)

Change in book overdraft

0

 

 

(2,150

)

Cash flows used in financing activities

(5,730

)

 

(445,529

)

Cash flows provided by (used in) continuing operations

148,856

 

 

(275,813

)

Net cash provided by operating activities of discontinued operations

0

 

 

4,823

 

Net cash provided by investing activities of discontinued operations

0

 

 

266,125

 

Net cash used in financing activities of discontinued operations

0

 

 

(78

)

Net cash provided by discontinued operations

0

 

 

270,870

 

Effect of exchange rate changes on cash

0

 

 

6

 

Cash and restricted cash at beginning of year

2,705

 

 

7,642

 

Cash and restricted cash at end of year

$

151,561

 

 

$

2,705

 

 
JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL 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.

 

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA

(Unaudited)

 

 

12 Weeks Ended

 

52 Weeks Ended

 

September 29,
2019

 

September 30,
2018

 

September 29,
2019

 

September 30,
2018

Revenues:

 

 

 

 

 

 

 

Company restaurant sales

35.6

%

 

43.3

%

 

35.4

%

 

51.5

%

Franchise rental revenues

28.9

%

 

35.1

%

 

28.7

%

 

29.8

%

Franchise royalties and other

17.6

%

 

21.5

%

 

17.9

%

 

18.7

%

Franchise contributions for advertising and other services

17.8

%

 

0.0

%

 

18.0

%

 

0.0

%

Total revenues

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

Operating costs and expenses, net:

 

 

 

 

 

 

 

Company restaurant costs:

 

 

 

 

 

 

 

Food and packaging (1)

29.6

%

 

29.3

%

 

29.0

%

 

28.8

%

Payroll and employee benefits (1)

30.4

%

 

28.8

%

 

29.7

%

 

28.8

%

Occupancy and other (1)

15.8

%

 

15.9

%

 

15.0

%

 

16.0

%

Total company restaurant costs (1)

75.8

%

 

73.9

%

 

73.8

%

 

73.6

%

Franchise occupancy expenses (2)

60.8

%

 

61.5

%

 

61.1

%

 

61.1

%

Franchise support and other costs (3)

9.7

%

 

9.7

%

 

7.1

%

 

7.1

%

Franchise advertising and other services expenses (4)

18.8

%

 

0.0

%

 

104.3

%

 

0.0

%

Selling, general and administrative expenses

4.7

%

 

13.8

%

 

8.0

%

 

12.1

%

Depreciation and amortization

5.7

%

 

7.4

%

 

5.8

%

 

6.8

%

Impairment and other charges, net

3.1

%

 

4.5

%

 

1.3

%

 

2.1

%

Gains on the sale of company-operated restaurants

(0.5

)%

 

(1.7

)%

 

(0.1

)%

 

(5.3

)%

Earnings from operations

21.9

%

 

20.3

%

 

21.3

%

 

26.8

%

Income tax rate (5)

27.4

%

 

24.1

%

 

20.8

%

 

43.9

%

(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 franchise contributions for advertising and other services.

(5) As a percentage of earnings from continuing operations and before income taxes.

Jack in the Box system sales (in thousands):

 

12 Weeks Ended

 

52 Weeks Ended

 

September 29,
2019

 

September 30,
2018

 

September 29,
2019

 

September 30,
2018

Company-owned restaurant sales

$

78,859

 

 

$

76,909

 

 

$

336,807

 

 

$

448,058

 

Franchised restaurant sales (1)

739,212

 

 

717,036

 

 

3,167,920

 

 

3,018,067

 

System sales (1)

$

818,071

 

 

$

793,945

 

 

$

3,504,727

 

 

$

3,466,125

 

 

(1) Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. System sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and system restaurant sales information is useful to investors as they have a direct effect on the company's profitability.

The following table summarizes the year-to-date changes in the number and mix of Jack in the Box company and franchise restaurants:

SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION

(Unaudited)

 

 

 

2019

 

2018

 

 

Company

 

Franchise

 

Total

 

Company

 

Franchise

 

Total

Beginning of year

 

137

 

 

2,100

 

 

2,237

 

 

276

 

 

1,975

 

 

2,251

 

New

 

0

 

 

19

 

 

19

 

 

1

 

 

11

 

 

12

 

Refranchised

 

0

 

 

0

 

 

0

 

 

(135

)

 

135

 

 

0

 

Closed

 

0

 

 

(13

)

 

(13

)

 

(5

)

 

(21

)

 

(26

)

End of period

 

137

 

 

2,106

 

 

2,243

 

 

137

 

 

2,100

 

 

2,237

 

% of system

 

6

%

 

94

%

 

100

%

 

6

%

 

94

%

 

100

%

SUPPLEMENTAL INFORMATION
(Unaudited)

Recast 2018 Consolidated Statement of Earnings

The company applied the modified retrospective method upon adoption of the new revenue recognition standard. The recast condensed consolidated statement of earnings reflects adjustments for the implementation of the new revenue recognition standard as if the full retrospective method was applied upon adoption.

Below is a reconciliation of the recast consolidated statement of earnings for the 12 weeks ended and 52 weeks ended September 30, 2018, to the consolidated statement of earnings that was previously reported for those periods (in thousands).

 

 

12 Weeks Ended

 

 

September 30, 2018

 

 

As Reported

 

Franchise Fees

 

Marketing and

Sourcing Fees

 

Technology

Support Fees

 

Recast

Revenues:

 

 

 

 

 

 

 

 

 

 

Company restaurant sales

 

$

76,909

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

76,909

 

Franchise rental revenues

 

62,365

 

 

0

 

 

0

 

 

0

 

 

62,365

 

Franchise royalties and other

 

38,198

 

 

637

 

 

0

 

 

0

 

 

38,835

 

Franchise contributions for advertising and other services

 

0

 

 

0

 

 

36,612

 

 

1,325

 

 

37,937

 

 

 

177,472

 

 

637

 

 

36,612

 

 

1,325

 

 

216,046

 

Operating costs and expenses, net:

 

 

 

 

 

 

 

 

 

 

Company restaurant costs:

 

 

 

 

 

 

 

 

 

 

Food and packaging

 

22,499

 

 

0

 

 

0

 

 

0

 

 

22,499

 

Payroll and employee benefits

 

22,178

 

 

0

 

 

0

 

 

0

 

 

22,178

 

Occupancy and other

 

12,195

 

 

0

 

 

0

 

 

0

 

 

12,195

 

Total company restaurant costs

 

56,872

 

 

0

 

 

0

 

 

0

 

 

56,872

 

Franchise occupancy expenses

 

38,332

 

 

0

 

 

0

 

 

0

 

 

38,332

 

Franchise support and other costs

 

3,699

 

 

0

 

 

0

 

 

0

 

 

3,699

 

Franchise advertising and other services expenses

 

0

 

 

0

 

 

36,612

 

 

3,454

 

 

40,066

 

Selling, general and administrative expenses

 

24,490

 

 

0

 

 

0

 

 

(2,129

)

 

22,361

 

Depreciation and amortization

 

13,116

 

 

0

 

 

0

 

 

0

 

 

13,116

 

Impairment and other charges, net

 

7,969

 

 

0

 

 

0

 

 

0

 

 

7,969

 

Gains on the sale of company-operated restaurants

 

(3,076

)

 

0

 

 

0

 

 

0

 

 

(3,076

)

 

 

141,402

 

 

0

 

 

36,612

 

 

1,325

 

 

179,339

 

Earnings from operations

 

36,070

 

 

637

 

 

0

 

 

0

 

 

36,707

 

Other pension and post-retirement expenses, net

 

423

 

 

0

 

 

0

 

 

0

 

 

423

 

Interest expense, net

 

11,481

 

 

0

 

 

0

 

 

0

 

 

11,481

 

Earnings from continuing operations and before income taxes

 

24,166

 

 

637

 

 

0

 

 

0

 

 

24,803

 

Income taxes

 

5,830

 

 

185

 

 

0

 

 

0

 

 

6,015

 

Earnings from continuing operations

 

$

18,336

 

 

$

452

 

 

$

0

 

 

$

0

 

 

$

18,788

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share - basic:

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

0.68

 

 

$

0.02

 

 

$

0.00

 

 

$

0.00

 

 

$

0.70

 

Net earnings per share - diluted:

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

0.68

 

 

$

0.02

 

 

$

0.00

 

 

$

0.00

 

 

$

0.69

 

SUPPLEMENTAL INFORMATION
(Unaudited)

Recast 2018 Consolidated Statement of Earnings

 

 

52 Weeks Ended

 

 

September 30, 2018

 

 

As Reported

 

Franchise Fees

 

Marketing and

Sourcing Fees

 

Technology

Support Fees

 

Recast

Revenues:

 

 

 

 

 

 

 

 

 

 

Company restaurant sales

 

$

448,058

 

 

$

0

 

 

$

0

 

 

$

0

 

 

$

448,058

 

Franchise rental revenues

 

259,047

 

 

0

 

 

0

 

 

0

 

 

259,047

 

Franchise royalties and other

 

162,585

 

 

(1,463

)

 

0

 

 

0

 

 

161,122

 

Franchise contributions for advertising and other services

 

0

 

 

0

 

 

154,258

 

 

8,179

 

 

162,437

 

 

 

869,690

 

 

(1,463

)

 

154,258

 

 

8,179

 

 

1,030,664

 

Operating costs and expenses, net:

 

 

 

 

 

 

 

 

 

 

Company restaurant costs:

 

 

 

 

 

 

 

 

 

 

Food and packaging

 

128,947

 

 

0

 

 

0

 

 

0

 

 

128,947

 

Payroll and employee benefits

 

129,089

 

 

0

 

 

0

 

 

0

 

 

129,089

 

Occupancy and other

 

71,803

 

 

0

 

 

0

 

 

0

 

 

71,803

 

Total company restaurant costs

 

329,839

 

 

0

 

 

0

 

 

0

 

 

329,839

 

Franchise occupancy expenses

 

158,319

 

 

0

 

 

0

 

 

0

 

 

158,319

 

Franchise support and other costs

 

11,593

 

 

0

 

 

0

 

 

0

 

 

11,593

 

Franchise advertising and other services expenses

 

0

 

 

0

 

 

154,258

 

 

13,984

 

 

168,242

 

Selling, general and administrative expenses

 

104,816

 

 

0

 

 

0

 

 

(5,805

)

 

99,011

 

Depreciation and amortization

 

59,422

 

 

0

 

 

0

 

 

0

 

 

59,422

 

Impairment and other charges, net

 

18,418

 

 

0

 

 

0

 

 

0

 

 

18,418

 

Gains on the sale of company-operated restaurants

 

(46,164

)

 

0

 

 

0

 

 

0

 

 

(46,164

)

 

 

636,243

 

 

0

 

 

154,258

 

 

8,179

 

 

798,680

 

Earnings from operations

 

233,447

 

 

(1,463

)

 

0

 

 

0

 

 

231,984

 

Other pension and post-retirement expenses, net

 

1,833

 

 

0

 

 

0

 

 

0

 

 

1,833

 

Interest expense, net

 

45,547

 

 

0

 

 

0

 

 

0

 

 

45,547

 

Earnings from continuing operations and before income taxes

 

186,067

 

 

(1,463

)

 

0

 

 

0

 

 

184,604

 

Income taxes

 

81,728

 

 

(418

)

 

0

 

 

0

 

 

81,310

 

Earnings from continuing operations

 

$

104,339

 

 

$

(1,045

)

 

$

0

 

 

$

0

 

 

$

103,294

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings per share - basic:

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

3.66

 

 

$

(0.04

)

 

$

0.00

 

 

$

0.00

 

 

$

3.62

 

Net earnings per share - diluted:

 

 

 

 

 

 

 

 

 

 

Earnings from continuing operations

 

$

3.62

 

 

$

(0.04

)

 

$

0.00

 

 

$

0.00

 

 

$

3.59

 

JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)

To supplement the consolidated financial statements, which are presented in accordance with GAAP, the company uses the following non-GAAP measures: Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin. Management believes that these measurements, when viewed with the company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the company's core business without regard to potential distortions.

Operating Earnings Per Share

Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding gains or losses on the sale of company-operated restaurants, restructuring charges, loss on early termination of interest rate swaps and debt extinguishment, the non-cash impact of the Tax Act, and the excess tax benefits from share-based compensation arrangements. Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Operating Earnings Per Share provides investors with a meaningful supplement of the company’s operating performance and period-over-period changes without regard to potential distortions.

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.

 

 

12 Weeks Ended

 

52 Weeks Ended

 

 

September 29,

2019

 

September 30,

2018

 

September 29,

2019

 

September 30,

2018

Diluted earnings per share from continuing operations - GAAP

 

$

0.86

 

 

$

0.68

 

 

$

3.52

 

 

$

3.62

 

Loss on early termination of interest rate swaps and debt extinguishment

 

0.08

0.64

Gains on the sale of company-operated restaurants

 

(0.03

)

 

(0.09

)

 

(0.04

)

 

(1.16

)

Restructuring charges

 

0.05

 

 

0.17

 

 

0.24

 

 

0.27

 

Non-cash impact of the Tax Cuts and Jobs Act

 

 

 

0.02

 

 

 

 

1.13

 

Excess tax benefits from share-based compensation arrangements

 

 

 

 

 

 

 

(0.07

)

Operating Earnings Per Share – non-GAAP

 

$

0.95

 

 

$

0.77

 

 

$

4.35

 

 

$

3.79

 

Adjusted EBITDA

Adjusted EBITDA represents net earnings on a GAAP basis excluding earnings or losses from discontinued operations, income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, impairment and other charges, net, depreciation and amortization, and the amortization of franchise tenant improvement allowances and other. Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Adjusted EBITDA is useful to investors to gain an understanding of the factors and trends affecting the company's ongoing cash earnings, from which capital investments are made and debt is serviced.

Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings (in thousands).

 

 

12 Weeks Ended

 

52 Weeks Ended

 

 

September 29,

2019

 

September 30,

2018

 

September 29,

2019

 

September 30,

2018

Net earnings - GAAP

 

$

22,061

 

 

$

16,269

 

 

$

94,437

 

 

$

121,371

 

Losses (earnings) from discontinued operations, net of taxes

 

(38

)

 

2,067

 

 

(2,690

)

 

(17,032

)

Income taxes

 

8,326

 

 

5,830

 

 

24,025

 

 

81,728

 

Interest expense, net

 

17,823

 

 

11,481

 

 

84,967

 

 

45,547

 

Gains on the sale of company-operated restaurants

 

(1,147

)

 

(3,076

)

 

(1,366

)

 

(46,164

)

Impairment and other charges, net

 

6,888

 

 

7,969

 

 

12,455

 

 

18,418

 

Depreciation and amortization

 

12,536

 

 

13,116

 

 

55,181

 

 

59,422

Amortization of franchise tenant improvement allowances and other

 

459

 

 

365

 

 

1,983

 

 

862

 

Adjusted EBITDA – non-GAAP

$

66,908

$

54,021

$

268,992

$

264,152

Restaurant-Level Margin

Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, payroll and employee benefits, and occupancy and other costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, impairment and other charges, net, gains or losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs. As such, Restaurant-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-owned restaurants.

Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings from operations (in thousands):

 

 

12 Weeks Ended

 

52 Weeks Ended

 

 

September 29,

2019

 

September 30,

2018

 

September 29,

2019

 

September 30,

2018

Earnings from operations - GAAP

 

$

48,515

 

 

$

36,070

 

 

$

202,223

 

 

$

233,447

 

Franchise rental revenues

 

(63,920

)

 

(62,365

)

 

(272,815

)

 

(259,047

)

Franchise royalties and other

 

(38,971

)

 

(38,198

)

 

(169,811

)

 

(162,585

)

Franchise contributions for advertising and other services

 

(39,485

)

 

0

 

 

(170,674

)

 

0

 

Franchise occupancy expenses

 

38,882

 

 

38,332

 

 

166,584

 

 

158,319

 

Franchise support and other costs

 

3,773

 

 

3,699

 

 

12,110

 

 

11,593

 

Franchise advertising and other services expenses

 

41,696

 

 

0

 

 

178,093

 

 

0

 

Selling, general and administrative expenses

 

10,300

 

 

24,490

 

 

76,357

 

 

104,816

 

Impairment and other charges, net

 

6,888

 

 

7,969

 

 

12,455

 

 

18,418

 

Gains on the sale of company-operated restaurants

 

(1,147

)

 

(3,076

)

 

(1,366

)

 

(46,164

)

Depreciation and amortization

 

12,536

 

 

13,116

 

 

55,181

 

 

59,422

 

Restaurant-Level Margin- Non-GAAP

 

$

19,067

 

 

$

20,037

 

 

$

88,337

 

 

$

118,219

 

 

 

 

 

 

 

 

 

 

Company restaurant sales

 

$

78,859

 

 

$

76,909

 

 

$

336,807

 

 

$

448,058

 

 

 

 

 

 

 

 

 

 

Restaurant-Level Margin % - Non-GAAP

 

24.2

%

 

26.1

%

 

26.2

%

 

26.4

%

Franchise-Level Margin

Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising and other service expenses, and franchise support and other costs) less the amortization of franchise tenant improvement allowances and other, and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, impairment and other charges, net, amortization of tenant improvement allowances and other, and other costs that are considered normal operating costs. As such, Franchise-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations.

Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from operations (in thousands):

 

 

12 Weeks Ended

 

52 Weeks Ended

 

 

September 29,

2019

 

September 30,

2018

 

September 30,

2018 Recast (1)

 

September 29,

2019

 

September 30,

2018

 

September 30,

2018 Recast (1)

Earnings from operations - GAAP

 

$

48,515

 

 

$

36,070

 

 

$

36,707

 

 

$

202,223

 

 

$

233,447

 

 

$

231,984

 

Company restaurant sales

 

(78,859

)

 

(76,909

)

 

(76,909

)

 

(336,807

)

 

(448,058

)

 

(448,058

)

Food and packaging

 

23,349

 

 

22,499

 

 

22,499

 

 

97,699

 

 

128,947

 

 

128,947

 

Payroll and employee benefits

 

23,995

 

 

22,178

 

 

22,178

 

 

100,158

 

 

129,089

 

 

129,089

 

Occupancy and other

 

12,448

 

 

12,195

 

 

12,195

 

 

50,613

 

 

71,803

 

 

71,803

 

Selling, general and administrative expenses

 

10,300

 

 

24,490

 

 

22,361

 

 

76,357

 

 

104,816

 

 

99,011

 

Impairment and other charges, net

 

6,888

 

 

7,969

 

 

7,969

 

 

12,455

 

 

18,418

 

 

18,418

 

Gains on the sale of company-operated restaurants

 

(1,147

)

 

(3,076

)

 

(3,076

)

 

(1,366

)

 

(46,164

)

 

(46,164

)

Depreciation and amortization

 

12,536

 

 

13,116

 

 

13,116

 

 

55,181

 

 

59,422

 

 

59,422

 

Amortization of franchise tenant improvement allowances and other

 

459

 

 

365

 

 

365

 

 

1,983

 

 

862

 

 

862

 

Franchise-Level Margin - Non-GAAP

 

$

58,484

 

 

$

58,897

 

 

$

57,405

 

 

$

258,496

 

 

$

252,582

 

 

$

245,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise rental revenues

 

$

63,920

 

 

$

62,365

 

 

$

62,365

 

 

$

272,815

 

 

$

259,047

 

 

$

259,047

 

Franchise royalties and other

 

38,971

 

 

38,198

 

 

38,835

 

 

169,811

 

 

162,585

 

 

161,122

 

Franchise contributions for advertising and other services

 

39,485

 

 

0

 

 

37,937

 

 

170,674

 

 

0

 

 

162,437

 

Total franchise revenues

 

$

142,376

 

 

$

100,563

 

 

$

139,137

 

 

$

613,300

 

 

$

421,632

 

 

$

582,606

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Franchise-Level Margin % - Non-GAAP

 

41.1

%

 

58.6

%

 

41.3

%

 

42.1

%

 

59.9

%

 

42.1

%

(1) Recast results for the impact of Topic 606 as shown in the "Supplemental Information" section of this release.

 

Source: Jack in the Box Inc.

Investor Contact:
Rachel Webb, (858) 571-2683