Jack In The Box 2011 Annual Report Download - page 22

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Table of Contents
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

For an understanding of the significant factors that influenced our performance during the past three fiscal years, we believe our Management’s Discussion
and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the Consolidated Financial Statements and
related Notes included in this Annual Report as indexed on page F-1.
Comparisons under this heading refer to the 52-week periods ended October 2, 2011 and September 27, 2009 for 2011 and 2009, and the 53-week period
ended October 3, 2010 for 2010, unless otherwise indicated.
Our MD&A consists of the following sections:
• Overview — a general description of our business and fiscal 2011 highlights.
• Financial reporting — a discussion of changes in presentation.
• Results of operations — an analysis of our consolidated statements of earnings for the three years presented in our consolidated financial
statements.
• Liquidity and capital resources — an analysis of cash flows including capital expenditures, aggregate contractual obligations, share repurchase
activity, known trends that may impact liquidity, and the impact of inflation.
• Discussion of critical accounting estimates — a discussion of accounting policies that require critical judgments and estimates.
• New accounting pronouncements — a discussion of new accounting pronouncements, dates of implementation and impact on our
consolidated financial position or results of operations, if any.

As of October 2, 2011, we operated and franchised 2,221 Jack in the Box restaurants, primarily in the western and southern United States, and 583
Qdoba restaurants throughout the United States.
Our primary source of revenue is from retail sales at Jack in the Box and Qdoba company-operated restaurants. We also derive revenue from Jack in the
Box and Qdoba franchise restaurants, including royalties (based upon a percent of sales), rents, franchise fees and distribution sales of food and packaging
commodities. In addition, we recognize gains from the sale of company-operated restaurants to franchisees, which are presented as a reduction of operating
costs and expenses, net in the accompanying consolidated statements of earnings.
The following summarizes the most significant events occurring in fiscal 2011 and certain trends compared to prior years:
• Restaurant Sales. System sales at Jack in the Box and Qdoba restaurants open more than one year (“same-store sales”) changed as follows:
  

Company 3.1% (8.6)% (1.2)%
Franchise 1.3% (7.8)% (1.3)%
System 1.8% (8.2)% (1.3)%

Company 5.1% 0.8% (5.0)%
Franchise 5.4% 3.6% (1.3)%
System 5.3% 2.8% (2.3)%
21