Jack In The Box 2014 Annual Report Download - page 26
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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
$ 782,461
$ 850,512
$ 943,990
Company restaurant costs:
Food and packaging
254,891
32.6%
284,221
33.4%
319,415
33.8%
Payroll and employee benefits
218,000
27.9%
241,149
28.4%
275,678
29.2%
Occupancy and other
164,433
21.0%
182,493
21.5%
207,920
22.0%
Total company restaurant costs
$ 637,324
81.5%
$ 707,863
83.2%
$ 803,013
85.1%
Company restaurant sales
$ 338,451
$ 293,268
$ 239,493
Company restaurant costs:
Food and packaging
102,447
30.3%
88,464
30.2%
69,820
29.2%
Payroll and employee benefits
90,494
26.7%
79,235
27.0%
62,532
26.1%
Occupancy and other
83,428
24.6%
73,093
24.9%
58,520
24.4%
Total company restaurant costs
$ 276,369
81.7%
$ 240,792
82.1%
$ 190,872
79.7%
As we have executed our Jack in the Box refranchising strategy, which includes the sale of restaurants to franchisees, we expected the number of company-
operated restaurants and the related sales to decrease while revenues from franchise restaurants increase. As such, company restaurant sales decreased $22.9
million in 2014 and $39.7 million in 2013 as compared with the respective prior year. The decrease in restaurant sales in both years is due primarily to
decreases in the average number of Jack in the Box company-operated restaurants, partially offset by an increase in the number of Qdoba company-operated
restaurants and increases in average unit volumes (“AUVs”) at our Jack in the Box and Qdoba restaurants. The following table presents the approximate
impact of these increases (decreases) on company restaurant sales (in millions):
Decrease in the average number of Jack in the Box restaurants
$ (122.1)
$ (123.0)
Jack in the Box AUV increase
54.0
29.5
Increase in the average number of Qdoba restaurants
36.0
49.3
Qdoba AUV increase
9.2
4.5
Total decrease in company restaurant sales
$ (22.9)
$ (39.7)
Same-store sales at Jack in the Box company-operated restaurants increased 2.0% in 2014 and 1.0% in 2013, primarily driven by price increases in both
years, and in 2014 favorable product mix changes, partially offset by a decrease in transactions. Same-store sales at Qdoba company-operated restaurants
increased 5.7% in 2014 and 0.5% in 2013 primarily driven by price increases, higher catering sales, and in 2014 favorable product mix, transaction growth
and lower discounting. The following table summarizes the change in company-operated same-store sales.
Transactions
(1.6)%
(0.9)%
Average Check (1)
3.6 %
1.9 %
Change in same-store sales
2.0 %
1.0 %
Transactions
1.3 %
(0.7)%
Average Check (2)
3.6 %
0.6 %
Catering
0.8 %
0.6 %
Change in same-store sales
5.7 %
0.5 %
____________________________
(1) Includes price increases of approximately 2.7% and 2.5% in 2014 and 2013, respectively.
(2) Includes price increases of approximately 1.0% in both years.
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