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Table of Contents
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Overview. Jack in the Box Inc. (the “Company”), based in San Diego, California, operates and franchises more than 2,700 Jack in
the Box® quick-service restaurants (“QSR”) and Qdoba Mexican Grill® fast-casual restaurants. In fiscal 2009, we generated total
revenues from continuing operations of $2.5 billion. References to the Company throughout this Annual Report on Form 10-K are made
using the first person notations of “we,” “us” and “our.”
Jack in the Box — The first Jack in the Box restaurant, which offered only drive-thru service, opened in 1951. Jack in the Box is
one of the nation’s largest hamburger chains, and based on the number of units, is the second or third largest QSR hamburger chain in
most of our major markets. As of the end of our fiscal year on September 27, 2009, the Jack in the Box system included 2,212
restaurants in 18 states, of which 1,190 were company-operated and 1,022 were franchise-operated.
Qdoba Mexican Grill — To supplement our core growth and balance the risk associated with growing solely in the highly
competitive hamburger segment of the QSR industry, in January 2003, we acquired Qdoba Restaurant Corporation, operator and
franchisor of Qdoba Mexican Grill. As of September 27, 2009, the Qdoba system included 510 restaurants in 42 states, as well as the
District of Columbia, of which 157 were company-operated and 353 were franchise-operated. In recent years, Qdoba has emerged as a
leader in the fast-casual segment of the restaurant industry.
Discontinued Operations — We had also operated a proprietary chain of 61 convenience stores and fuel stations called Quick
Stuff®, which were each adjacent to a Jack in the Box restaurant. In the fourth quarter of 2008, our Board of Directors approved a plan to
sell Quick Stuff and we completed the disposition in the fourth quarter of 2009. Refer to Note 2, Discontinued Operations, in the notes
to the consolidated financial statements for more information.
Strategic Plan. Our Company vision of being a national restaurant company is supported by four key strategic initiatives:
(i) reinvent the Jack in the Box brand, (ii) expand franchising operations, (iii) improve the business model, and (iv) grow Jack in the Box
and Qdoba Mexican Grill.
Strategic Plan — Brand Reinvention. We believe that reinventing the Jack in the Box brand by focusing on the following three
initiatives will differentiate us from our competition by offering our guests a better restaurant experience than typically found in the QSR
segment:
• Menu Innovation. We believe that menu innovation and our use of high-quality ingredients will further differentiate Jack in the
Box from competitors, strengthen our brand and appeal to a broader base of consumers. In recent years, we have successfully
leveraged premium ingredients like sirloin and artisan breads in launching new products unique to our segment of the restaurant
industry. In fiscal 2009, we introduced several new menu items and new product platforms, including our chicken and beef
Teriyaki Bowls, Mini Sirloin Burgers and Mini Buffalo Ranch Chicken Sandwiches, Flavored Teas and two new varieties of
our Real Fruit Smoothies. We also introduced two products featuring a homestyle chicken fillet: a Homestyle Ranch Chicken
Club and Breakfast Homestyle Chicken Biscuit. We further enhanced our line of breakfast products with a Chorizo Sausage
Burrito and added two new side items, Mini Churros and Taco Nachos. Looking ahead, we have numerous products in various
stages of development and test as we continue to innovate and enhance our menu as a means to further differentiate Jack in the
Box from other QSR chains.
• Service. A second major initiative of brand reinvention is to improve the level and consistency of guest service at our restaurants.
Our investment in employee training to reinforce six key tenets of guest service (quality food, a clean environment, friendly
employees, order accuracy, a hassle-free experience and speed of service) has resulted in significant improvement in guest-
satisfaction scores, which increased steadily throughout the year to a substantially higher level than fiscal 2008. We believe that
our all-time low levels of
2