Jack In The Box 2012 Annual Report Download - page 21
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•Franchising Program. We refranchised 97 Jack in the Box restaurants, while Jack in the Box franchisees opened a total of 18 restaurants in
2012. Our Jack in the Box system was approximately 76% franchised at the end of fiscal 2012, and we plan to ultimately increase franchise
ownership to approximately 80%. During fiscal 2012, we acquired 46 Qdoba franchised restaurants and Qdoba franchisees opened a total of 32
restaurants.
•Restructuring Costs. During fiscal 2012, we engaged in a comprehensive review of our organization structure, including evaluating
opportunities for outsourcing, restructuring of certain functions and workforce reductions. As a result, restructuring charges of $15.5 million
were recorded during fiscal 2012.
•Distribution Outsourcing During the fourth quarter of 2012, we began outsourcing our Jack in the Box distribution business. As a result, we
recorded after-tax charges totaling $5.3 million, or $0.12 per diluted share, in the fourth quarter of fiscal 2012.
•Share Repurchases. Pursuant to share repurchase programs authorized by our Board of Directors, in 2012, we repurchased 1.2 million shares
of our common stock at an average price of $ 24.36 per share, including the cost of brokerage fees.
The losses for our distribution business 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.
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.
Revenues:
Company restaurant sales
78.9 %
83.0 %
87.8 %
Franchise revenues
21.1 %
17.0 %
12.2 %
Total revenues
100.0 %
100.0 %
100.0 %
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging (1)
32.8 %
33.4 %
31.8 %
Payroll and employee benefits (1)
29.0 %
30.0 %
30.3 %
Occupancy and other (1)
23.1 %
23.9 %
23.9 %
Total company restaurant costs (1)
84.9 %
87.3 %
85.9 %
Franchise costs (1)
51.0 %
48.3 %
45.4 %
Selling, general and administrative expenses
14.7 %
13.5 %
12.8 %
Impairment and other charges, net
2.1 %
0.8 %
2.6 %
Gains on the sale of company-operated restaurants
(1.9)%
(3.7)%
(2.9)%
Earnings from operations
7.3 %
8.7 %
6.5 %
Income tax rate (2)
32.7 %
36.3 %
34.0 %
____________________________
(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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