Jack In The Box 2014 Annual Report Download - page 24
Download and view the complete annual report
Please find page 24 of the 2014 Jack In The Box annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14 -
15 -
16 -
17 -
18 -
19 -
20 -
21 -
22 -
23 -
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
 |
 |
•Qdoba New Unit Growth — In 2014, we opened 16 company-operated restaurants and franchisees opened 22 restaurants of which four were in
non-traditional locations such as airports and college campuses. In fiscal 2015, we expect the majority of our franchise new unit development to
be in non-traditional locations.
•Debt Refinancing — During the second quarter of fiscal 2014, we refinanced our credit facility to provide us with a more flexible, longer-term
capital structure to support our strategic plan. The new facility consists of a $600.0 million revolving credit facility and a $200.0 million term
loan, both with a five-year maturity.
•Return of Cash to Shareholders — During the year we returned cash to shareholders in the form of share repurchases and the initiation of a regular
quarterly cash dividend. We repurchased over 5.6 million shares of our common stock at an average price of $56.63 per share, totaling $319.7
million, including the cost of brokerage fees, and declared dividends of $0.40 per share totaling $15.9 million.
In the first quarter of fiscal 2014, we changed our segment disclosure to reflect updates made to our current management structure, internal reporting
method and financial information used in deciding how to allocate resources. Refer to Note 17, Segment Reporting, in the notes to our consolidated financial
statements for more information.
The consolidated statements of earnings for all periods presented have been prepared reflecting the results of operations for the 2013 Qdoba closures and
charges incurred as a result of closing these restaurants as discontinued operations. The results of operations and costs incurred to outsource our distribution
business are also reflected as discontinued operations for all periods presented. Refer to Note 2, Discontinued Operations, in the notes to our consolidated
financial statements for more information.
The following table presents certain income and expense items included in our consolidated statements of earnings as a percentage of total revenues,
unless otherwise indicated. Percentages may not add due to rounding.
Revenues:
Company restaurant sales
75.5%
76.8 %
78.4 %
Franchise revenues
24.5%
23.2 %
21.6 %
Total revenues
100.0%
100.0 %
100.0 %
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging (1)
31.9%
32.6 %
32.9 %
Payroll and employee benefits (1)
27.5%
28.0 %
28.6 %
Occupancy and other (1)
22.1%
22.3 %
22.5 %
Total company restaurant costs (1)
81.5%
82.9 %
84.0 %
Franchise costs (1)
50.4%
50.2 %
51.0 %
Selling, general and administrative expenses
13.9%
14.8 %
14.9 %
Impairment and other charges, net
1.0%
0.9 %
2.2 %
Losses (gains) on the sale of company-operated restaurants
0.2%
(0.3)%
(1.9)%
Earnings from operations
10.9%
9.3 %
8.0 %
Income tax rate (2)
35.3%
32.8 %
33.2 %
____________________________
(1) As a percentage of the related sales and/or revenues.
(2) As a percentage of earnings from continuing operations and before income taxes.
22