Jack In The Box 2011 Annual Report Download - page 11

Table of Contents
cases, forward-looking statements can be identified by words such as “anticipate,” “assume,” “believe,” “estimate,” “expect,” “forecast,” “goals,”
“guidance,” “intend,” “plan,” “project,” “may,” “will,” “would,” and similar expressions. Certain forward-looking statements are included in this Form 10-
K, principally in the sections captioned “Business,” “Legal Proceedings,” “Consolidated Financial Statements” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations,” including statements regarding our strategic plans and operating strategies. Although we believe that the
expectations reflected in our forward-looking statements are based on reasonable assumptions, such expectations and forward-looking statements may prove to
be materially incorrect due to known and unknown risks and uncertainties.
In some cases, information regarding certain important factors that could cause actual results to differ materially from any forward-looking statement
appears together with such statement. In addition, the factors described under “Risk Factors” and “Critical Accounting Estimates” in this Form 10-K, as well
as other possible factors not listed, could cause actual results, economic performance, financial condition or achievements to differ materially from those
expressed in any forward-looking statements. As a result, investors should not place undue reliance on such forward-looking statements, which speak only as
of the date of this report. The Company is under no obligation to update forward-looking statements, whether as a result of new information or otherwise.
ITEM 1A. RISK FACTORS
We caution you that our business and operations are subject to a number of risks and uncertainties. The factors listed below are important factors that
could cause our actual results to differ materially from our historical results and from projections in forward-looking statements contained in this report, in
our other filings with the Securities and Exchange Commission (“SEC”), in our news releases and in oral statements by our representatives. However, other
factors that we do not anticipate or that we do not consider significant based on currently available information may also have an adverse effect on our results.
Risks Related to the Food Service Industry. Food service businesses such as ours may be materially and adversely affected by changes in consumer
tastes, national and regional economic, political and socioeconomic conditions and changes in consumer eating habits, whether based on new information
regarding diet, nutrition and health, or otherwise. Adverse economic conditions, including higher levels of unemployment, lower levels of consumer confidence
and decreased consumer spending have and may continue to reduce restaurant traffic and sales and impose practical limits on pricing. If adverse economic
conditions persist for an extended period of time, consumers may make long-lasting changes to their spending behavior. The impact of these factors may be
exacerbated by the geographic distribution of our business. Given that approximately 70% of the restaurants in our Jack in the Box system are located in the
states of California and Texas, the economic conditions, state and local laws, government regulations, weather conditions and natural disasters affecting those
states may have a material impact upon our results.
The performance of our business may also be adversely affected by factors such as:
• seasonal sales fluctuations;
• severe weather and other natural disasters;
• unfavorable trends or developments concerning operating costs such as inflation, increased cost of food, labor, fuel, utilities, technology,
insurance and employee benefits (including increases in hourly wages, workers’ compensation and other insurance costs and premiums);
• the impact of initiatives by competitors and increased competition generally;
• lack of customer acceptance of new menu items or potential price increases necessary to cover higher input costs;
• customers trading down to lower priced items and/or shifting to competitors with lower priced products;
• the availability of qualified, experienced management and hourly employees; and
• unsuccessful marketing programs.
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