Jack In The Box 2011 Annual Report Download - page 24

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Table of Contents


  
Revenues:
Company restaurant sales 62.9% 72.6% 80.0%
Distribution sales 24.2% 17.3% 12.2%
Franchise revenues 12.9% 10.1% 7.8%
Total revenues 100.0% 100.0% 100.0%
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging (1) 33.4% 31.8% 32.4%
Payroll and employee benefits (1) 30.0% 30.3% 29.7%
Occupancy and other (1) 23.9% 23.9% 21.7%
Total company restaurant costs (1) 87.3% 85.9% 83.8%
Distribution costs (1) 100.5% 100.4% 99.6%
Franchise costs (1) 48.3% 45.4% 40.6%
Selling, general and administrative expenses 10.2% 10.6% 10.5%
Impairment and other charges, net 0.6% 2.1% 0.9%
Gains on the sale of company-operated restaurants, net (2.8)% (2.4)% (3.2)%
Earnings from operations 6.5% 5.3% 9.4%
Income tax rate (2) 35.9% 33.8% 37.7%
(1) As a percentage of the related sales and/or revenues.
(2) As a percentage of earnings from continuing operations and before income taxes.
The following table presents Jack in the Box and Qdoba company restaurant sales, costs and costs as a percentage of the related sales. Percentages may not
add due to rounding.

(dollars in thousands)

  

Company restaurant sales $ 1,181,961 $ 1,518,434 $ 1,850,442
Company restaurant costs:
Food and packaging 403,209 34.1% 488,179 32.2% 602,581 32.6%
Payroll and employee benefits 358,917 30.4% 463,625 30.5% 552,001 29.8%
Occupancy and other 271,432 23.0% 353,056 23.3% 392,780 21.2%
Total company restaurant costs $ 1,033,558 87.4% $ 1,304,860 85.9% $ 1,547,362 83.6%

Company restaurant sales $ 198,312 $ 150,093 $ 125,400
Company restaurant costs:
Food and packaging 57,581 29.0% 42,434 28.3% 37,335 29.8%
Payroll and employee benefits 55,546 28.0% 41,513 27.7% 35,550 28.3%
Occupancy and other 58,334 29.4% 45,010 30.0% 36,199 28.9%
Total company restaurant costs $ 171,461 86.5% $ 128,957 85.9% $ 109,084 87.0%

As we execute our refranchising strategy, which includes the sale of restaurants to franchisees, we expect the number of company-operated restaurants and
the related sales to decrease while revenues from franchise restaurants increase. As such, company restaurant sales decreased $288.3 million in 2011 and
$307.3 million in 2010 as compared with the prior year. The decrease in restaurant sales in both years is due primarily to decreases
23