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Company profile

Frontier Acquisition Corp. is a blank check company. The Company is formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. The Company focuses on biotechnology sector. The Company has no operations and has not generated revenues.

Closing Price
$10.11
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Jack in the Box Inc. Reports Fourth Quarter and Full-Year 2022 Earnings

8:30 am ET November 22, 2022 (BusinessWire) Print

--Del Taco same-store sales of +5.2% in Q4 2022, +3.9%(1) for FY 2022

--Systemwide sales of +4.1%(2) for Jack in the Box and +4.2%(2) for Del Taco in Q4 2022

--Jack in the Box to open 25-30 restaurants, expects positive net unit growth in FY 2023

--Jack in the Box completes refranchising of Nashville and Oregon evolving market restaurants, with development commitments for 42 new restaurants

--Management provides company-wide and brand-specific annual guidance measures for FY 2023

Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the fourth quarter, ended October 2, 2022.

"I am very pleased with the momentum of our top line performance to close 2022, which we have seen continue into the first several weeks of Q1, and the consistency we showed throughout the year in driving sales and improving traffic, as we continue to remain careful on the price we are taking to maintain a consistent value equation for our guests," said Darin Harris, Jack in the Box chief executive officer. "We continue to navigate operational headwinds, but Jack and Del Taco franchisees and operators showed their ability to be resilient and manage through them effectively all throughout 2022. While we will continue to attack the inflationary impact on margins, our top line fundamentals, operational focus, and expectation for positive net unit growth for Jack all demonstrate that 2023 will be a big year for our company and another positive step in the transformation of the Jack brand. The investments we are making in digital, technology and training, plus the continued integration and refranchising of Del Taco, have me enthusiastic for our future."

Jack in the Box Performance

Same-store sales increased 4.0% in the fourth quarter, comprised of an increase in Company-operated same-store sales of 11.4% and an increase in franchise same-store sales of 3.2%. Higher average check, driven mostly by pricing, and an increase in traffic drove the increase for company-operated while higher average check was partially offset by a decrease in traffic for franchise. Systemwide sales(2) for the fourth quarter increased 4.1%.

As of the fourth quarter, and since the launch of the development program in mid-2021, the Company currently has 68 signed agreements for a total of 267 new restaurants. Under these agreements, 22 restaurants have opened, leaving 245 remaining for future development. Net restaurant count was down 26 in the fourth quarter, with 7 franchise openings and 33 restaurant closures. Most of these closures were related to one-time and strategic factors such as Evolving Markets and portfolio optimization within the St. Louis market as it exited bankruptcy process. The 33 restaurant closures included 10 Company-operated restaurants as part of refranchising Evolving Markets, 22 with an early termination including 10 in the St. Louis market, and one franchise location with an agreement expiration.

Restaurant-Level Margin(3), a non-GAAP measure, was 16.2%, a decline from a year ago driven by increases in food and packaging costs; wage inflation of 11.3%; and increases in utilities and maintenance and repair costs, partially offset by menu price increases. Commodity costs increased in the quarter by approximately 14.9%, primarily due to increases in proteins, sauces and oil. When removing the temporary Evolving Markets, Restaurant-Level Margin was 19.5% for the quarter. During the fourth quarter, the Company completed the refranchising of two restaurants within the Nashville market, which also included four restaurant closures. This will remove all Nashville locations from the Evolving Markets portfolio beginning in Q1 2023, and also included development agreements for the first new franchisee for Jack in the Box in nearly a decade to open 7 restaurants in Baton Rouge, 16 restaurants in the Carolinas, and 14 in the Nashville area.

Franchise-Level Margin(3), a non-GAAP measure, was 42.4%, an increase from a year ago, driven by higher same-store sales as well as higher early termination fees in the current year.

Jack in the Box Same-Store Sales:
                 
     12 Weeks Ended       12 Weeks Ended         13 Weeks Ended         52 Weeks Ended         53 Weeks Ended
                     -------------------- --------------------                      --------------------                      --------------------                      --------------------
     October 2, 2022      October 2, 2022        October 3, 2021        October 2, 2022        October 3, 2021
                     -------------------- --------------------                      --------------------                      --------------------                      --------------------
Company                      11.4%                11.4%                 (4.4)%                  3.7%                   6.1%
Franchise                    3.2%                 3.2%                   0.6%                   0.6%                   10.7%
System SSS                   4.0%                 4.0%                   0.1%                   0.9%                   10.3%
Jack in the Box Restaurant Counts:
                                                                                                                                                                   
                                   2022                                                                                  2022                                                                                                                                                    2021
                                              -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                             ----------------------------------------------------------------------------------------------------------------------------------------------
                                  Company                      Company                              Franchise                               Total                                Company                              Franchise                               Total
                                              -------------------- ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------
Store count at beginning of Q4                                 171            171              2,036              2,207                148              2,071              2,219  
                                                    -- --                  7                  7     --                  4                  4  
    New
                                                    -- --     --     --                 16                (16 )                      --  
    Acquired from franchisees
                                                               (15            (15 )                                  15     --     --     --     --  
    Refranchised
                                                               (10            (10 )                                 (23 )                                 (33 )                                  (1 )                                  (4 )                                  (5 )
    Closed
                                              -------------------- -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------
Store count at end of Q4                                       146            146              2,035              2,181                163              2,055              2,218  
                                              -------------------- -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------
                                                               (25            (25 )                                  (1 )                                 (26 )                                                                            
    Q4 Net Unit Decrease
                                              ==================== ============== ====================                      ============== ====================                      ============== ====================
                                                             (10.4          (10.4 )%                               (1.0 )%                               (1.7 )%                                                                           
    Q4/FY 2022 vs. Q4/FY 2021 Unit % Decrease
                                              ==================== ============== ====================                      ============== ====================                      ============== ====================

Del Taco Performance(1)

Systemwide sales(2) for the fiscal fourth quarter increased 4.2% driven by positive results in both franchise and company-operated same-store sales. Same-store sales increased 5.2% in the fourth quarter, comprised of franchise same-store sales growth of 6.4% and Company-operated same-store sales growth of 4.1%. Sales performance was boosted by the successful launch of the Epic Tortas platform, the 20 Under $2 value menu, higher average ticket and menu price, partially offset by menu mix and transaction declines. Del Taco had a fourth quarter net restaurant decrease of three restaurants, comprised of one company-operated closure and two franchise closures.

Restaurant-Level Margin, a non-GAAP measure, was 15.9% while Franchise-Level Margin, a non-GAAP measure, was 42.5%.

Del Taco Same-Store Sales(1):
     
     12 Weeks Ended                       12 Weeks Ended
                     -------------------- --------------------------------------------------
     October 2, 2022    October 2, 2022   October 3, 2021
                     -------------------- ---------------                      ---------------
Company                      4.1%               4.1%              0.7%
Franchise                    6.4%               6.4%              1.8%
Del Taco Restaurant Counts(1):
                                                                                                                                                                   
                                   2022                                                                                  2022                                                                                                                                                  2021
                                              -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------                             ------------------------------------------------------------------------------------------------------------------------------------------
                                  Company                      Company                              Franchise                               Total                                Company                              Franchise                             Total
                                              -------------------- ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ------------------------------
Restaurant count at beginning of Q4                            291            291                303                594                298                305            603  
                                                    -- --     --     --     --                  1              1  
    New
                                                                (1             (1 )                                  (2 )                                  (3 )                                  (2 )                      --             (2 )
    Closed
                                              -------------------- -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      ---------- --------------------
Restaurant count at end of Q4                                  290            290                301                591                296                306            602  
                                              -------------------- -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      -------------- --------------------                      ---------- --------------------
                                                                (1             (1 )                                  (2 )                                  (3 )                                                             
    Q4 Net Restaurant Decrease
                                              ==================== ============== ====================                      ============== ====================                      ============== ====================
                                                              (2.0           (2.0 )%                               (1.6 )%                               (1.8 )%                                                            
    Q4 2022 vs. Q4 2021 Restaurant % Decrease
                                              ==================== ============== ====================                      ============== ====================                      ============== ====================

Company-Wide Performance

Fourth quarter diluted earnings per share was $2.17. Operating Earnings Per Share(4), a non-GAAP measure, was $1.33 in the fourth quarter of fiscal 2022 compared with $1.73 in the prior year quarter. Fourth quarter operating EPS was negatively impacted by the 53rd week in 2021 by $0.12. Total revenues increased 44.6% to $402.8 million, compared to $278.5 million in the prior year quarter.

Net earnings increased to $45.9 million for the fourth quarter of fiscal 2022, compared with $38.9 million for the fourth quarter of fiscal 2021.

Adjusted EBITDA(5), a non-GAAP measure, was $77.9 million in the fourth quarter of fiscal 2022 compared with $74.3 million for the prior year quarter.

SG&A expense for the fourth quarter, which now includes Del Taco, was $37.5 million, an increase of $16.4 million compared to the prior year quarter, driven primarily by mark-to-market changes in the cash surrender value of company owned life insurance ("COLI") policies, net of changes in our deferred compensation obligation supported by these policies, resulting in a year-over-year increase of $2.9 million, an increase of $2.3 million in incentive compensation and an increase of $13.3 million from the acquisition of Del Taco; partially offset by a decrease in litigation matters of $2.7 million and the 53rd week in the prior year of $1.8 million.

The effective tax rate for the fourth quarter of fiscal year 2022 was 29.1% compared to 25.4% in fiscal year 2021. The year-over-year increase in tax rate was primarily driven by non-deductible COLI losses in the current year as opposed to non-taxable gains in the prior year. The full year effective tax rate was 28.5%.

(1) Del Taco same-store sales on a two-year basis and all prior year comparisons are pro forma and based on the time period of Jack in the Box's full two-year fiscal calendar. We believe Del Taco's information on this time period is useful to investors as they have a direct effect on the company's profitability.                                                                                                                  Del Taco same-store sales on a two-year basis and all prior year comparisons are pro forma and based on the time period of Jack in the Box's full two-year fiscal calendar. We believe Del Taco's information on this time period is useful to investors as they have a direct effect on the company's profitability.
(2) Systemwide sales growth is computed using a 52-week prior year fiscal calendar for comparative purposes.                                                                                                                                                                                                                                     Systemwide sales growth is computed using a 52-week prior year fiscal calendar for comparative purposes.
(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."                                                                                                                                                                                 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."
(4) Operating Earnings Per Share represents diluted earnings per share on a GAAP basis of $2.17 excluding acquisition, integration, and restructuring costs of $0.04; COLI losses (gains), net of $0.20; refranchising gains of ($0.08); and gains on sale of real estate to franchisees of ($1.01). See "Reconciliation of Non-GAAP Measurements to GAAP Results." Operating earnings per share may not add due to rounding.                                         Operating Earnings Per Share represents diluted earnings per share on a GAAP basis of $2.17 excluding acquisition, integration, and restructuring costs of $0.04; COLI losses (gains), net of $0.20; refranchising gains of ($0.08); and gains on sale of real estate to franchisees of ($1.01). See "Reconciliation of Non-GAAP Measurements to GAAP Results." Operating earnings per share may not add due to rounding.
(5) Adjusted EBITDA represents net earnings on a GAAP basis excluding income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, other operating expenses (income), net, depreciation and amortization, the amortization of favorable and unfavorable leases and subleases, net and the amortization of franchise tenant improvement allowances and incentives. See "Reconciliation of Non-GAAP Measurements to GAAP Results." Adjusted EBITDA represents net earnings on a GAAP basis excluding income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, other operating expenses (income), net, depreciation and amortization, the amortization of favorable and unfavorable leases and subleases, net and the amortization of franchise tenant improvement allowances and incentives. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

Capital Allocation

The company repurchased 0.3 million shares of our common stock for an aggregate cost of $25.0 million in the fourth quarter. As of October 2, 2022, there was $175.0 million remaining amount under the Board-authorized stock buyback program. In addition to a previously announced one-time legal settlement, paying down debt and continuing to invest in the growth of the business, the company plans to execute up to $50 million in share repurchases in FY 2023.

On November 18, 2022, the Board of Directors declared a cash dividend of $0.44 per share, to be paid on December 22, 2022 to shareholders of record as of the close of business on December 7, 2022. Future dividends will be subject to approval by our Board of Directors.

Guidance & Outlook

The following guidance and underlying assumptions reflect the company's current expectations for the current fiscal year ending October 1, 2023:

Company-wide Guidance

FY 2023 CapEx & Other Investments Guidance of $75-90 million Capital expenditures (located within cash flows from investing activities) Franchise tenant improvement allowances and incentives (located within cash flows from operating activities) FY 2023 SG&A Guidance of $160-170 million Excludes net COLI gains/losses, and now includes selling/advertising expense Synergies from the Del Taco acquisition are not all direct reductions to expense, and appear in other areas of the P&L and margins, including store-level franchisee margins Areas of cost mitigation include Restaurant Level Margin, Franchise Level Margin, Purchasing, Reduced Commodity Inflation, Marketing Activity and Spend Does not include anticipated Del Taco refranchising savings FY 2023 Company-owned Commodity Guidance up 9-11% vs. 2022 FY 2023 Company-owned Wage Rate Guidance up 3-6% vs. 2022 FY 2023 Operating EPS Guidance of $5.25-5.65, includes Unique and One-time Items of Note $0.08 negative impact associated with the reduction in rental revenue from real estate sales (additional detail below in Real Estate Sales section) $0.22 negative impact associated with store-level technology investments (additional detail below in Franchise Level Margin section) As mentioned within Capital Allocation section, the company plans to execute up to $50 million in share repurchases in FY 2023 Excludes any dilutive impact from refranchising Del Taco restaurants, and we will provide updates throughout the year as this initiative progresses Further Detail on Real Estate Sales Jack in the Box has identified real estate assets in its portfolio that, due to current cap rates, can be monetized at more attractive valuations than the current trading multiple. The company can use the net proceeds from these real estate transactions to pay down debt, provide additional liquidity or other corporate purposes including investments in growth initiatives and potential share repurchases For planned real estate sales of franchised properties, there is a reduction in rental revenue partially offset by a modest reduction in occupancy expense Given trends in interest rates, this is a limited opportunity for the company in the near term In total, there is an anticipated $2.2 million impact on adjusted EBITDA and an expected $0.08 negative impact on Operating EPS associated with the reduction in rental revenue Further Detail on Del Taco Refranchising Cypress Group is currently assisting with refranchising of Del Taco locations with three main intentions. First, to create a company-wide asset-light model that will benefit from mitigating exposure to macroeconomic pressures; second, to generate incremental development agreements throughout the refranchising process that provide for a more robust unit growth pipeline than otherwise achievable; and third, a more efficient G&A structure Our objective is to be asset light as we navigate market forces in the near term - and we will adjust the rate, pace and sequence of refranchising efforts to balance impact to earnings, as we await accelerated new unit openings from incremental development agreements and natural G&A reductions We will provide updates throughout 2023, and plan to execute deals with existing Jack in the Box franchisees early in the year - as well as assess further deals patiently to ensure we maximize development potential as well as transaction value

Brand Segment Guidance

Jack in the Box expects positive net unit growth in 2023, led by 25-30 gross openings Del Taco expects 8-12 gross openings in 2023 FY 2023 Same Store Sales of Low Single Digits for both Jack in the Box and Del Taco FY 2023 Restaurant Level Margin Outlook Jack in the Box Restaurant Level Margin is expected to be 18-20%, which includes high single digit price increases and is impacted negatively by 125 bps due to the remaining Evolving Markets Del Taco Restaurant Level Margin is expected to be 14-16%, which includes high single digit price increases FY 2023 Franchise Level Margin Outlook Jack in the Box Franchise Level Margin is expected to be 40-41%, which includes digital and restaurant level technology investments such as a new POS system as well as other technology platforms and applications to support future sales growth, operations and unit-level profitability. These investments are expected to pressure Operating EPS by $0.22 in FY 2023. Del Taco Franchise Level Margin is expected to be ~41%

Conference Call

The Company will host a conference call for analysts and investors on Tuesday, November 22, 2022, beginning at 10:00 a.m. PT (1:00 p.m. ET). The call will be webcast live via the Investors section of the Jack in the Box company website at http://investors.jackinthebox.com. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days. The call can be accessed via phone by dialing (888) 330-2508 and using ID 4115265.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box(R), one of the nation's largest hamburger chains with more than 2,180 restaurants across 21 states, and Del Taco(R), the second largest Mexican-American QSR chain by units in the U.S. with approximately 600 restaurants across 15 states. For more information on both brands, including franchising opportunities, visit www.jackinthebox.com and www.deltaco.com. Category: Earnings

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," "believe," "estimate," "expect," "forecast," "goals," "guidance," "intend," "plan," "project," "may," "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 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 franchise development; the ability to attract, train and retain top-performing personnel, 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; increased regulatory and legal complexities, 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                                            13 Weeks                                             52 Weeks                                              53 Weeks
                                                                                                           Ended                                                                  Ended                                                                   Ended                                                                    Ended
                                                                                    -----------------------------------------------   -------------------- -----------------------------------------------                        -------------------------------------------------   -------------------- -------------------------------------------------
                                                                  October 2,                                          October 3,                                           October 2,                                            October 3,
                                                                                                           2022                                                                   2021                                                                    2022                                                                     2021
                                                                                    -----------------------------------------------                        -----------------------------------------------                        -------------------------------------------------                        -------------------------------------------------
Revenues:                                                                                                                                                              
                                                                                  $                    $ 214,474                        $  95,634                        $   701,070                        $   387,766  
    Company restaurant sales
                                                                    80,668        84,386         340,391         346,634  
    Franchise rental revenues
                                                                    56,906        49,264         216,821         204,725  
    Franchise royalties and other
                                                                    50,725        49,170         209,801         204,545  
    Franchise contributions for advertising and other services
                                                               -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                402,773       278,454       1,468,083       1,143,670  
                                                               -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Operating costs and expenses, net:                                                                                                                                     
                                                                    66,182        29,630         216,345         113,006  
    Food and packaging
                                                                    70,249        30,306         232,250         119,033  
    Payroll and employee benefits
                                                                    43,701        16,456         135,803          61,743  
    Occupancy and other
                                                                    51,411        52,016         215,609         214,913  
    Franchise occupancy expenses
                                                                     3,796         3,716          16,490          13,052  
    Franchise support and other costs
                                                                    53,308        51,361         218,272         210,328  
    Franchise advertising and other services expenses
                                                                    37,549        21,128         130,823          81,959  
    Selling, general and administrative expenses
                                                                    15,346        10,844          56,100          46,500  
    Depreciation and amortization
                                                                       480           450           1,110             775  
    Pre-opening costs
                                                                   (21,450 )                         (5,080 )                              889          (3,382 )
    Other operating expense (income), net
                                                                    (2,218 )                         (1,124 )                           (3,878 )                           (4,203 )
    Gains on the sale of company-operated restaurants
                                                               -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                318,354       209,703       1,219,813         853,724  
                                                               -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Earnings from operations                                            84,419        68,751         248,270         289,946  
Other pension and post-retirement expenses, net                         70           203             303             881  
Interest expense, net                                               19,704        16,338          86,075          67,458  
                                                               -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Earnings before income taxes                                        64,645        52,210         161,892         221,607  
Income taxes                                                        18,787        13,276          46,111          55,852  
                                                               -------------------- -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Net earnings                                                                      $                    $  45,858                        $  38,934                        $   115,781                        $   165,755  
                                                               ==================== ==================== ======= ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                    
Net earnings per share:                                                                                                                                                
                                                                                  $                    $    2.17                        $    1.81                        $      5.46                        $      7.40  
    Basic
                                                                                  $                    $    2.17                        $    1.80                        $      5.45                        $      7.37  
    Diluted
                                                                                                                                                    
Weighted-average shares outstanding:                                                                                                                                   
                                                                    21,110        21,537          21,195          22,402  
    Basic
                                                                    21,162        21,594          21,245          22,478  
    Diluted
                                                                                                                                                    
Cash dividends declared per common share                                          $                    $    0.44                        $    0.44                        $      1.76                        $      1.68  
                                                                                                                    JACK IN THE BOX INC. AND SUBSIDIARIES
                                                                                                                         CONSOLIDATED BALANCE SHEETS
                                                                                                               (In thousands, except share and per share data)
                                                                                                                                 (Unaudited)
                                                                                                                                                          
                                                                                                                      October 2,                                                 October 3,
                                                                                                                                                               2022                                                                          2021
                                                                                                                                     ------------------------------------------------------                        ------------------------------------------------------
                                                     ASSETS                                                                                                                  
Current assets:                                                                                                                                            
                                                                                                                                   $                    $        108,890                        $         55,346  
    Cash
                                                                                                                            27,150               18,222  
    Restricted cash
                                                                                                                           103,803               74,335  
    Accounts and other receivables, net
                                                                                                                             5,264                2,335  
    Inventories
                                                                                                                            16,095               12,682  
    Prepaid expenses
                                                                                                                            17,019                1,692  
    Current assets held for sale
                                                                                                                             4,772                4,346  
    Other current assets
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                           282,993              168,958  
        Total current assets
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Property and equipment, at cost:                                                                                                                                                               
                                                                                                                            86,134              105,393  
    Land
                                                                                                                           960,984              907,792  
    Buildings
                                                                                                                           163,527              112,959  
    Restaurant and other equipment
                                                                                                                            18,271                6,894  
    Construction in progress
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                         1,228,916            1,133,038  
     
                                                                                                                          (810,752 )                              (810,124 )
    Less accumulated depreciation and amortization
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                           418,164              322,914  
        Property and equipment, net
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other assets:                                                                                                                                                                                  
                                                                                                                         1,332,135              934,066  
    Operating lease right-of-use assets
                                                                                                                            12,324                  470  
    Intangible assets, net
                                                                                                                           283,500       --  
    Trademarks
                                                                                                                           366,821               47,774  
    Goodwill
                                                                                                                    --               51,517  
    Deferred tax assets
                                                                                                                           226,569              224,438  
    Other assets, net
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                         2,221,349            1,258,265  
        Total other assets
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                $                    $      2,922,506                        $      1,750,137  
                                                                                                                ==================== ==================== ============== ====================                      ==================== ============== ====================
                        LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                   
Current liabilities:                                                                                                                                       
                                                                                                                                   $                    $         30,169                        $            894  
    Current maturities of long-term debt
                                                                                                                           171,311              150,636  
    Current operating lease liabilities
                                                                                                                            66,271               29,119  
    Accounts payable
                                                                                                                           253,932              148,417  
    Accrued liabilities
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                           521,683              329,066  
        Total current liabilities
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Long-term liabilities:                                                                                                                                                                         
                                                                                                                         1,799,540            1,273,420  
    Long-term debt, net of current maturities
                                                                                                                         1,165,097              809,191  
    Long-term operating lease liabilities, net of current portion
                                                                                                                            37,684       --  
    Deferred tax liabilities
                                                                                                                           134,694              156,342  
    Other long-term liabilities
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                         3,137,015            2,238,953  
        Total long-term liabilities
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Stockholders' deficit:                                                                                                                                              
                                                                                                                    --       --  
    Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued
                                                                                                                               826                  825  
    Common stock $0.01 par value, 175,000,000 shares authorized, 82,580,599 and 82,536,059 issued, respectively
                                                                                                                           508,323              500,441  
    Capital in excess of par value
                                                                                                                         1,842,947            1,764,412  
    Retained earnings
                                                                                                                           (53,982 )                               (74,254 )
    Accumulated other comprehensive loss
                                                                                                                        (3,034,306 )                            (3,009,306 )
    Treasury stock, at cost, 61,799,221 and 61,523,475 shares, respectively
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                          (736,192 )                              (817,882 )
        Total stockholders' deficit
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                $                    $      2,922,506                        $      1,750,137  
                                                                                                                -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                        
=============================================================================================================== ==================== ======================================================                        ======================================================
                                                                                                     JACK IN THE BOX INC. AND SUBSIDIARIES
                                                                                                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                          (In thousands) (Unaudited)
                                                                                                                             
                                                                                          52 Weeks Ended                                          53 Weeks Ended
                                                                                                             -------------------------------------------------                        ------------------------------------------------------
                                                                                          October 2, 2022                                         October 3, 2021
                                                                                                             -------------------------------------------------                        ------------------------------------------------------
Cash flows from operating activities:                                                                                         
                                                                                                           $                    $   115,781                        $        165,755  
    Net earnings
                                                                                                                              
    Adjustments to reconcile net earnings to net cash provided by operating activities:
                                                                                               56,100               46,500  
        Depreciation and amortization
                                                                                                4,446                3,450  
        Amortization of franchise tenant improvement allowances and incentives
                                                                                                5,496                5,595  
        Amortization of debt issuance costs
                                                                                                7,700                    0  
        Loss on extinguishment of debt
                                                                                                  123               (1,160 )
        Tax deficiency (excess tax benefits) from share-based compensation arrangements
                                                                                                7,857                8,008  
        Deferred income taxes
                                                                                                7,122                4,048  
        Share-based compensation expense
                                                                                                  303                  881  
        Pension and postretirement expense
                                                                                               12,668              (12,753 )
        Losses (gains) on cash surrender value of company-owned life insurance
                                                                                               (3,878 )                                (4,203 )
        Gains on the sale of company-operated restaurants
                                                                                              (30,533 )                                (6,888 )
        Gains on the disposition of property and equipment
                                                                                                8,219                2,889  
        Impairment charges and other
                                                                                                                                                                  
    Changes in assets and liabilities, excluding acquisitions and dispositions:
                                                                                              (18,143 )                                 5,072  
        Accounts and other receivables
                                                                                                  304                 (269 )
        Inventories
                                                                                               (3,275 )                                (2,766 )
        Prepaid expenses and other current assets
                                                                                                2,593              (24,784 )
        Operating lease right-of-use assets and lease liabilities
                                                                                               16,243               (3,091 )
        Accounts payable
                                                                                               (9,081 )                                28,990  
        Accrued liabilities
                                                                                               (6,690 )                                (6,084 )
        Pension and postretirement contributions
                                                                                               (2,989 )                                (8,568 )
        Franchise tenant improvement allowance and incentive disbursements
                                                                                               (7,484 )                                   500  
        Other
                                                                                        -------------------- -------------------- --------- --------------------                      -------------------- -------------- --------------------
                                                                                              162,882              201,122  
            Cash flows provided by operating activities
                                                                                        -------------------- -------------------- --------- --------------------                      -------------------- -------------- --------------------
Cash flows from investing activities:                                                                                         
                                                                                              (46,475 )                               (41,008 )
    Purchases of property and equipment
                                                                                               10,768                3,884  
    Proceeds from the sale and leaseback of assets
                                                                                             (580,793 )                        --  
    Acquisition of Del Taco, net of cash acquired
                                                                                                6,391                1,827  
    Proceeds from the sale of company-operated restaurants
                                                                                               31,161               11,742  
    Proceeds from the sale of property and equipment
                                                                                                  360                2,626  
    Other
                                                                                        -------------------- -------------------- --------- --------------------                      -------------------- -------------- --------------------
                                                                                             (578,588 )                               (20,929 )
            Cash flows used in investing activities
                                                                                        -------------------- -------------------- --------- --------------------                      -------------------- -------------- --------------------
Cash flows from financing activities:                                                                                         
                                                                                               68,000       --  
    Borrowings on revolving credit facilities
                                                                                              (18,000 )                              (107,875 )
    Repayments of borrowings on revolving credit facilities
                                                                                            1,100,000       --  
    Proceeds from issuance of debt
                                                                                             (588,064 )                                  (829 )
    Principal repayments on debt
                                                                                              (20,599 )                        --  
    Debt issuance costs
                                                                                              (36,987 )                               (37,322 )
    Dividends paid on common stock
                                                                                                   51                6,647  
    Proceeds from issuance of common stock
                                                                                              (25,000 )                              (200,000 )
    Repurchases of common stock
                                                                                               (1,223 )                                (4,166 )
    Payroll tax payments for equity award issuances
                                                                                        -------------------- -------------------- --------- --------------------                      -------------------- -------------- --------------------
                                                                                              478,178             (343,545 )
            Cash flows provided by (used in) financing activities
Net increase (decrease) in cash and restricted cash                                            62,472             (163,352 )
Cash and restricted cash at beginning of year                                                  73,568              236,920  
                                                                                        -------------------- -------------------- --------- --------------------                      -------------------- -------------- --------------------
Cash and restricted cash at end of year                                                                    $                    $   136,040                        $         73,568  
                                                                                        ==================== ==================== ========= ====================                      ==================== ============== ====================

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 STATEMENT OF EARNINGS DATA
                                                                                                              (Unaudited)
                                                           
                                                    12 Weeks               13 Weeks               52 Weeks               53 Weeks
                                                                                            Ended                                     Ended                                     Ended                                     Ended
                                                                                    -------------------  -------------------- -------------------                       -------------------  -------------------- -------------------
                                                   October 2,             October 3,             October 2,             October 3,
                                                                                            2022                                      2021                                      2022                                      2021
                                                                                    -------------------                       -------------------                       -------------------                       -------------------
Revenues:                                                                     
                                                                               53.2           53.2 %                 34.3 %                 47.8 %                 33.9 %
    Company restaurant sales
                                                                               20.0           20.0 %                 30.3 %                 23.2 %                 30.3 %
    Franchise rental revenues
                                                                               14.1           14.1 %                 17.7 %                 14.8 %                 17.9 %
    Franchise royalties and other
                                                                               12.6           12.6 %                 17.7 %                 14.3 %                 17.9 %
    Franchise contributions for advertising and other services
                                                               -------------------- -------------- -----                      -------------- -----                      -------------- -----                      -------------- -----
                                                           100.0          100.0 %                100.0 %                100.0 %                100.0 %
                                                               ==================== ============== =====                      ============== =====                      ============== =====                      ============== =====
Operating costs and expenses, net:                                            
                                                                               30.9           30.9 %                 31.0 %                 30.9 %                 29.1 %
    Food and packaging (1)
                                                                               32.8           32.8 %                 31.7 %                 33.1 %                 30.7 %
    Payroll and employee benefits (1)
                                                                               20.4           20.4 %                 17.2 %                 19.4 %                 15.9 %
    Occupancy and other (1)
                                                                               63.7           63.7 %                 61.6 %                 63.3 %                 62.0 %
    Franchise occupancy expenses (2)
                                                                                6.7            6.7 %                  7.5 %                  7.6 %                  6.4 %
    Franchise support and other costs (3)
                                                                              105.1          105.1 %                104.5 %                104.0 %                102.8 %
    Franchise advertising and other services expenses (4)
                                                                                9.3            9.3 %                  7.6 %                  8.9 %                  7.2 %
    Selling, general and administrative expenses
                                                                                3.8            3.8 %                  3.9 %                  3.8 %                  4.1 %
    Depreciation and amortization
                                                                     -- -- %       -- %       -- %       -- %
    Pre-opening costs
                                                                               (5.3           (5.3 )%                (1.8 )%                 0.1 %                 (0.3 )%
    Other operating expense (income), net
                                                                               (0.6           (0.6 )%                (0.4 )%                (0.3 )%                (0.4 )%
    Gains on the sale of company-operated restaurants
Earnings from operations                                                       21.0           21.0 %                 24.7 %                 16.9 %                 25.4 %
____________________________
(1)       As a percentage of company restaurant sales.                                   As a percentage of company restaurant sales.
(2)       As a percentage of franchise rental revenues.                                  As a percentage of franchise rental revenues.
(3)       As a percentage of franchise royalties and other.                              As a percentage of franchise royalties and other.
(4)       As a percentage of franchise contributions for advertising and other services. As a percentage of franchise contributions for advertising and other services.
(5)       As a percentage of earnings from operations and before income taxes.           As a percentage of earnings from operations and before income taxes.
Jack in the Box system sales (in thousands):
                                                                   
                         12 Weeks                   12 Weeks                          13 Weeks                          52 Weeks                          53 Weeks
                                              Ended                      Ended                                                Ended                                                Ended                                                Ended
                                      -------------------- ------------------------------  -------------------- ------------------------------                       ------------------------------  -------------------- ------------------------------
                        October 2,                 October 2,                        October 3,                        October 2,                        October 3,
                                              2022                       2022                                                 2021                                                 2022                                                 2021
                                      -------------------- ------------------------------                       ------------------------------                       ------------------------------                       ------------------------------
                                                         $                    $     99,020                      $     95,634                      $    414,225                      $    387,766
    Company-operated restaurant sales
                                             871,464        914,827      3,696,817      3,767,574
    Franchised restaurant sales (1)
                                      -------------------- -------------------- ----------                      -------------------- ----------                      -------------------- ----------                      -------------------- ----------
____________________________
(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. 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.
Del Taco systemwide sales (in thousands):
                                                                                    
                      12 Weeks Ended                                    12 Weeks Ended                                                                   52 Weeks Ended
                                      -------------------- --------------------------------------------------------------------------                          --------------------------------------------------------------------------
                        October 2,               October 2,                     October 3,                     October 2,                     October 3,
                                              2022                     2022                                            2021 (1)                                          2022 (1)                                          2021 (1)
                                      -------------------- ---------------------------                       ---------------------------                       ---------------------------                       ---------------------------
                                                         $                    $ 115,454                      $ 111,990                      $ 484,347                      $ 471,385
    Company-operated restaurant sales
                                          113,440     107,699     472,682     449,390
    Franchised restaurant sales (2)
                                      -------------------- -------------------- -------                      -------------------- -------                      -------------------- -------                      -------------------- -------
____________________________
(1)       Del Taco has been presented on a pro forma basis and has been derived from unaudited financial information to conform to our fiscal year and is for informational purposes only.                                                                                                                                                                                                                                     Del Taco has been presented on a pro forma basis and has been derived from unaudited financial information to conform to our fiscal year and is for informational purposes only.
(2)       Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. Systemwide 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 systemwide restaurant sales information is useful to investors as they have a direct effect on the company's profitability. Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. Systemwide 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 systemwide restaurant sales information is useful to investors as they have a direct effect on the company's profitability.

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 on a GAAP basis excluding acquisition, integration, and restructuring costs; COLI losses (gains), net, refranchising gains, gains on the sale of real estate to franchisees and pension and post-retirement benefit costs. 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. Figures may not add due to rounding.

                                                          12 Weeks Ended                                             13 Weeks Ended
                                                                           ------------------------------------------------------   -------------------- ------------------------------------------------------
                                                          October 2, 2022                                            October 3, 2021
                                                                           ------------------------------------------------------                        ------------------------------------------------------
Diluted earnings per share - GAAP                             $           2.17                        $           1.80  
                                                                    0.04       --  
    Acquisition, integration, and restructuring costs
                                                                    0.20                (0.04 )
    Net COLI losses (gains)
                                                                   (0.08 )                                 (0.04 )
    Refranchising gains
                                                                   (1.01 )                        --  
    Gains on sale of real estate to franchisees
                                                          --                 0.01  
    Pension and post-retirement benefit costs
                                                                           -------------------- -------------- --------------------                      -------------------- -------------- --------------------
____________________
(1)    Operating Earnings Per Share may not add due to rounding.                                                                                                                                                                                                                                     Operating Earnings Per Share may not add due to rounding.
(2)    Beginning in the first quarter of 2022, we began excluding gains and losses driven by mark-to-market changes in the cash surrender value of COLI policies, net of a deferred compensation obligation supported by these policies as they are primarily driven by external market conditions. The prior period has been recast to conform to the current year presentation.                                                                                                                        Beginning in the first quarter of 2022, we began excluding gains and losses driven by mark-to-market changes in the cash surrender value of COLI policies, net of a deferred compensation obligation supported by these policies as they are primarily driven by external market conditions. The prior period has been recast to conform to the current year presentation.
(3)    Beginning in the fourth quarter of fiscal 2022, we began excluding gains on the sale of real estate to franchisees since these transaction are not part of our core business operating activities. The prior period has been recast to conform to the current year presentation.                                                                                                                                                                                                                  Beginning in the fourth quarter of fiscal 2022, we began excluding gains on the sale of real estate to franchisees since these transaction are not part of our core business operating activities. The prior period has been recast to conform to the current year presentation.
(4)    Beginning in the fourth quarter of fiscal 2022, we began excluding pension and postretirement benefit costs which include interest, expected return on plan assets, amortization of actuarial gains and losses, and prior service costs. These benefit cost components are excluded since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. The prior period has been recast to conform to the current year presentation. Beginning in the fourth quarter of fiscal 2022, we began excluding pension and postretirement benefit costs which include interest, expected return on plan assets, amortization of actuarial gains and losses, and prior service costs. These benefit cost components are excluded since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. The prior period has been recast to conform to the current year presentation.

Adjusted EBITDA

Adjusted EBITDA represents net earnings on a GAAP basis excluding income taxes, interest expense, net, gains or losses on the sale of company-operated restaurants, other operating expenses (income), net, depreciation and amortization, amortization of favorable and unfavorable leases and subleases, net 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                                         13 Weeks Ended
                                                                                                -----------------------------------------------   -------------------- ------------------------------------------------------
                                                                            October 2, 2022                                        October 3, 2021
                                                                                                -----------------------------------------------                        ------------------------------------------------------
Net earnings - GAAP                                                                             $  45,858                        $         38,934  
                                                                                18,787               13,276  
    Income taxes
                                                                                19,704               16,338  
    Interest expense, net
                                                                                (2,218 )                                (1,124 )
    Gains on the sale of company-operated restaurants
                                                                               (21,450 )                                (5,080 )
    Other operating income, net
                                                                                15,346               10,844  
    Depreciation and amortization
                                                                                   435       --  
    Amortization of favorable and unfavorable leases and subleases, net
                                                                                 1,400                1,120  
    Amortization of franchise tenant improvement allowances and incentives
                                                                                                -------------------- ------- --------------------                      -------------------- -------------- --------------------
Adjusted EBITDA - non-GAAP                                                         $  77,862                        $         74,308  
                                                                                                ==================== ======= ====================                      ==================== ============== ====================

Restaurant-Level Margin

Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy 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, pre-opening costs, other operating expenses (income), 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-operated restaurants.

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

                                                                                                   Jack in the Box                                                                                                                      Del Taco
                                                                                    ------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------
                                                                  October 2,                                          October 3,                                             October 2,                                                 October 3,
                                                                                                           2022                                                                   2021                                                                      2022                                                                          2021
                                                                                    -----------------------------------------------                        -----------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------
Earnings from operations - GAAP                                                     $  82,563                        $  68,751                        $          1,856                        $ --  
                                                                   (78,868 )                        (84,386 )                                (1,801 )                        --  
    Franchise rental revenues
                                                                   (51,395 )                        (49,264 )                                (5,511 )                        --  
    Franchise royalties and other
                                                                   (45,882 )                        (49,170 )                                (4,843 )                        --  
    Franchise contributions for advertising and other services
                                                                    49,658        52,016                1,753       --  
    Franchise occupancy expenses
                                                                     3,461         3,716                  336       --  
    Franchise support and other costs
                                                                    48,412        51,361                4,896       --  
    Franchise advertising and other services expenses
                                                                    24,238        21,128               13,311       --  
    Selling, general and administrative expenses
                                                                   (23,280 )                         (5,080 )                                 1,829       --  
    Other operating expense (income), net
                                                                    (2,218 )                         (1,124 )                        --       --  
    Gains on the sale of company-operated restaurants
                                                                     8,858        10,844                6,488       --  
    Depreciation and amortization
                                                                       477           450                    3       --  
    Pre-opening costs
                                                                                    -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Restaurant-Level Margin- Non-GAAP                                                   $  16,024                        $  19,242                        $         18,317                        $ --  
                                                                                    ==================== ======= ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                         
Company restaurant sales                                                            $  99,020                        $  95,634                        $        115,454                        $ --  
                                                                                                                                                         
Restaurant-Level Margin % - Non-GAAP                                  16.2 %                           20.1 %                                  15.9 %                        -- %

Franchise-Level Margin

Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) 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, other operating expenses (income), net, 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):

                                                                                          Jack in the Box                                                                                                                      Del Taco
                                                                           ------------------------------------------------------------------------------------------------------------------       -------------------- --------------------------------------------------------------------------------------------------------------------------------
                                                         October 2,                                          October 3,                                             October 2,                                                 October 3,
                                                                                                  2022                                                                   2021                                                                      2022                                                                          2021
                                                                           -----------------------------------------------                        -----------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------
Earnings from operations - GAAP                                            $  82,563                        $  68,751                        $          1,856                        $ --  
                                                          (99,020 )                        (95,634 )                              (115,454 )                        --  
    Company restaurant sales
                                                           32,271        29,630               33,912       --  
    Food and packaging
                                                           32,608        30,306               37,642       --  
    Payroll and employee benefits
                                                           18,117        16,456               25,583       --  
    Occupancy and other
                                                           24,238        21,128               13,311       --  
    Selling, general and administrative expenses
                                                          (23,280 )                         (5,080 )                                 1,829       --  
    Other operating expense (income), net
                                                           (2,218 )                         (1,124 )                        --       --  
    Gains on the sale of company-operated restaurants
                                                            8,858        10,844                6,488       --  
    Depreciation and amortization
                                                              477           450                    3       --  
    Pre-opening costs
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Franchise-Level Margin - Non-GAAP                                          $  74,614                        $  75,727                        $          5,170                        $ --  
                                                                           ==================== ======= ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                
Franchise rental revenues                                                  $  78,868                        $  84,386                        $          1,801                        $ --  
Franchise royalties and other                              51,395        49,264                5,511       --  
Franchise contributions for                                45,882        49,170                4,843       --  
advertising and other services
                                                                           -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total franchise revenues                                                   $ 176,145                        $ 182,820                        $         12,155                        $ --  
                                                                           ==================== ======= ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                

View source version on businesswire.com: https://www.businesswire.com/news/home/20221122005295/en/

SOURCE: Jack in the Box Inc.

Chris Brandon
Vice President of Investor Relations
619.902.0269
comtex tracking

COMTEX_419479942/1006/2022-11-22T08:30:07

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