Jack In The Box 2008 Annual Report Download - page 31

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The following table summarizes the number of system-wide restaurants:
SYSTEMWIDE RESTAURANT UNITS
Sept. 28, 2008 Sept. 30, 2007 Oct. 1, 2006
Jack in the Box:
Company-operated ........................... 1,346 1,436 1,475
Franchised ................................. 812 696 604
Total system ................................ 2,158 2,132 2,079
Qdoba:
Company-operated ........................... 111 90 70
Franchised ................................. 343 305 248
Total system ................................ 454 395 318
Consolidated:
Company-operated ........................... 1,457 1,526 1,545
Franchised ................................. 1,155 1,001 852
Total system ................................ 2,612 2,527 2,397
In 2008 and 2007, we opened 23 and 42 company-operated JACK IN THE BOX restaurants and franchisees opened
15 and 16 restaurants, respectively. In addition, we sold 109 and 76 JACK IN THE BOX company-operated restaurants
to franchisees, respectively. Qdoba opened 77 and 87 company and franchise-operated restaurants during 2008 and
2007, respectively.
Revenues
Company-operated restaurant sales were $2,101.6 million, $2,151.0 million, and $2,101.0 million, in 2008,
2007, and 2006, respectively. The decrease in restaurant sales in 2008 compared with a year ago primarily reflects
the sale of JACK IN THE BOX company-operated restaurants to franchisees. Restaurant sales also include the loss of
approximately 1,300 restaurant operating days due to the impact of Hurricane Ike. These decreases were partially
offset by an increase in the number of Qdoba company-operated restaurants and modest increases in per store
average (“PSA”) sales at JACK IN THE BOX and Qdoba company-operated restaurants. Same-store sales at JACK IN THE
BOX company-operated restaurants increased 0.2% in 2008 on top of 6.1% in 2007 and 4.8% in 2006, which
reflected price increases of approximately 2.2% in 2008. The sales growth in 2007 compared with 2006 primarily
reflects an increase in PSA sales at JACK IN THE BOX and Qdoba company-operated restaurants and an increase in the
number of Qdoba company-operated restaurants, offset in part by a decrease in the number of JACK IN THE BOX
company-operated restaurants reflecting our Franchising Strategy.
Distribution sales, representing distribution sales to JACK IN THE BOX and Qdoba franchisees, grew to
$275.2 million in 2008 from $222.6 million in 2007 and $170.5 million in 2006. The increase in distribution
sales in 2008 and 2007 primarily relates to an increase in the number of JACK IN THE BOX and Qdoba franchised
restaurants serviced by our distribution centers and higher food costs.
Franchised restaurant revenues, which include rents, royalties and fees from restaurants operated by fran-
chisees, increased to $162.8 million in 2008 from $139.9 million in 2007 and $109.7 million in 2006, primarily
reflecting an increase in the number of franchised restaurants. The number of franchised restaurants increased to
1,155 at the end of the fiscal year from 1,001 in 2007 and 852 in 2006, reflecting the franchising of JACK IN THE BOX
company-operated restaurants and new restaurant development by Qdoba and JACK IN THE BOX franchisees.
Operating Costs and Expenses
Restaurant costs of sales, which include food and packaging costs, increased to $701.1 million in 2008 from
$685.2 million in 2007, and $656.0 million in 2006. As a percentage of restaurant sales, restaurant costs of sales
23