Jack In The Box 2009 Annual Report Download - page 23
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Table of Contents
• New Restaurant Growth. Unit expansion was strong during the year, with the opening of 126 new Jack in the Box and Qdoba
company-operated and franchised restaurants. Both brands opened restaurants in new markets during the year, with sales
volumes above system averages.
• Re-Image Program. We continued to execute our strategic initiative to reinvent the Jack in the Box brand, which includes
comprehensive enhancements to our restaurant facilities. As of September 27, 2009, approximately 46% of all Jack in the Box
restaurants were fully re-imaged and 96% of the Jack in the Box system featured the exterior elements of the program.
• Franchising Program. We continued on pace with our strategic initiative to expand franchising (through sales of company-
operated restaurants to franchisees and new restaurant development), despite tight credit markets. We refranchised 194 Jack in
the Box restaurants, and Qdoba and Jack in the Box franchisees opened 59 restaurants in 2009. We also have signed
development agreements with franchisees representing commitments to open a total of 78 and 201 new Jack in the Box and
Qdoba restaurants, respectively, over the next five years.
• Discontinued Operations. In September 2008, the Board of Directors approved plans to sell our Quick Stuff convenience
stores to maximize the potential of the Jack in the Box and Qdoba Brands. In the fourth quarter of fiscal 2009, we successfully
completed the sale of all 61 locations.
The results of operations and cash flows for Quick Stuff are reflected as discontinued operations for all periods presented. Refer to
Note 2, Discontinued Operations, in the notes to our consolidated financial statements for more information.
In 2009, restaurant operating costs have been separated into two components: “Payroll and employee benefits” and “Occupancy and
other.” Prior year amounts have been adjusted to conform to this new method of presentation.
The following table sets forth, unless otherwise indicated, the percentage relationship to total revenues of certain items included in
our consolidated statements of earnings. This information is derived from the consolidated statements of earnings found elsewhere in this
report.
Revenues:
Restaurant sales 80.0% 82.8% 85.6%
Distribution sales 12.2% 10.8% 8.9%
Franchised restaurant revenues 7.8% 6.4% 5.5%
Total revenues 100.0% 100.0% 100.0%
Operating costs and expenses:
Food and packaging costs(1) 32.4% 33.4% 31.9%
Payroll and employee benefits(1) 29.7% 29.7% 30.0%
Occupancy and other(1) 21.7% 20.9% 20.3%
Company restaurant costs(1) 83.8% 83.9% 82.1%
Distribution costs of sales(1) 99.6% 99.3% 99.0%
Franchised restaurant costs(1) 40.6% 39.9% 40.4%
Selling, general and administrative expenses 11.4% 11.3% 11.6%
Gains on the sale of company-operated restaurants (3.2)% (2.6)% (1.5)%
Earnings from operations 9.4% 8.5% 8.6%
Income tax rate(2) 37.7% 37.3% 35.6%
(1) As a percentage of the related sales and/or revenues.
(2) As a percentage of earnings from continuing operations and before income taxes.
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