Jack In The Box 2005 Annual Report Download - page 29

ITEM 2. PROPERTIES
Of our 2,049 JACK IN THE BOX and 250 Qdoba restaurants, we owned 776 restaurant buildings, including 560 located
on leased land. In addition, we leased both the land and building for 1,240 restaurants, including 258 restaurants operated by
franchisees. At October 2, 2005, franchisees directly owned or leased 283 restaurants.
Number of restaurants at October 2, 2005
Company-
operated Franchised Total
Company-owned restaurant buildings:
On Company-owned land.......................................................................... 154 62 216
On leased land ........................................................................................... 455 105 560
Subtotal...................................................................................................... 609 167 776
Company-leased restaurant buildings on leased land..................................... 982 258 1,240
Franchise directly-owned or directly-leased
restaurant buildings.................................................................................... − 283 283
Total restaurant buildings .......................................................................... 1.591 708 2,299
Our leases generally provide for fixed rental payments (with cost-of-living index adjustments) plus real estate taxes,
insurance and other expenses. In addition, many of the leases provide for contingent rental payments of between 2% and 10% of
the restaurant’ s gross sales once certain thresholds are met. We have generally been able to renew our restaurant leases as they
expire at then-current market rates. The remaining terms of ground leases range from approximately one year to 49 years,
including optional renewal periods. The remaining lease terms of our other leases range from approximately one-year to 42
years, including optional renewal periods. At October 2, 2005, our leases had initial terms expiring as follows:
Number of restaurants
Ground
leases
Land and
building leases
2006 – 2010........................................................................................................................... 29 56
2011 – 2015........................................................................................................................... 189 365
2016 – 2020........................................................................................................................... 56 243
2021 and later........................................................................................................................ 286 576
Our principal executive offices are located in San Diego, California in an owned facility of approximately 150,000
square feet. We also own our 70,000 square foot Innovation Center and approximately 4 acres of undeveloped land directly next
to it. Qdoba’ s corporate support center is located in a leased facility in Wheat Ridge, Colorado. We also own one distribution
center and lease six centers, with remaining terms ranging from one to 19 years, including optional renewal periods.
Certain of our real and personal property are pledged as collateral for various components of our long-term debt.
ITEM 3. LEGAL PROCEEDINGS
The Company is subject to normal and routine litigation. In the opinion of management, based in part on the advice of
legal counsel, the ultimate liability from all pending legal proceedings, asserted legal claims and known potential legal claims
should not materially affect our operating results, financial position and liquidity.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the fourth fiscal quarter ended October 2, 2005.
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