Jack In The Box 2008 Annual Report Download - page 24

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ITEM 2. PROPERTIES
The following table sets forth information regarding our JACK IN THE BOX and Qdoba restaurant properties as of
September 28, 2008.
Company-
Operated Franchised Total
Company-owned restaurant buildings:
On company-owned land .............................. 154 87 241
On leased land ..................................... 439 177 616
Subtotal ........................................... 593 264 857
Company-leased restaurant buildings on leased land ............ 864 425 1,289
Franchise directly-owned or directly-leased restaurant buildings . . . — 466 466
Total restaurant buildings ............................. 1,457 1,155 2,612
Our leases generally provide for fixed rental payments (with cost-of-living index adjustments) plus real estate
taxes, insurance and other expenses. In addition, less than 20% of the leases provide for contingent rental payments
between 1% and 13% 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 46 years, including optional renewal periods. The remaining lease terms of our
other leases range from approximately one year to 49 years, including optional renewal periods. At September 28,
2008, our leases had initial terms expiring as follows:
Fiscal Year Ground
Leases
Land and
Building
Leases
Number of Restaurants
2009 - 2013................................................ 178 317
2014 - 2018 ............................................... 105 470
2019 - 2023 ............................................... 200 421
2024 and later ............................................. 133 81
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 four acres of
undeveloped land directly adjacent to it. Qdoba’s corporate support center is located in a leased facility in Wheat
Ridge, Colorado. We also lease seven distribution centers, with remaining terms ranging from three to 17 years,
including optional renewal periods.
Certain of our personal property is pledged as collateral under our credit agreement and certain of our real
property may be pledged as collateral in the event of a ratings downgrade as defined in the credit agreement.
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 or liquidity.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company did not submit any matter during the fourth quarter of fiscal 2008 to a vote of its stockholders,
through the solicitation of proxies or otherwise.
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