Jack In The Box 2015 Annual Report Download - page 33

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. Cash flows used in investing activities increased $41.5 million in 2015 compared with 2014 due primarily to an increase in capital
expenditures, cash used to acquire assets held for sale and leaseback, and a decrease in proceeds from assets held for sale and leaseback and the sale of
company-operated restaurants. In 2014, cash flows used in investing activities increased $9.0 million compared with 2013 due primarily to decreases in
proceeds from assets held for sale and leaseback and the sale of company-operated restaurants, partially offset by decreases in capital expenditures, cash used
to acquire assets held for sale and leaseback, and acquisitions of franchise-operated restaurants.
Capital Expenditures — The composition of capital expenditures in each fiscal year is summarized in the table below (in thousands):



Jack in the Box:
New restaurants
$ 2,402
$ 3,533
$ 5,887
Restaurant facility expenditures
36,062
22,680
40,670
Other, including information technology
3,464
4,645
3,716
$ 41,928
$ 30,858
$ 50,273
Qdoba:
New restaurants
$ 26,686
$ 13,189
$ 22,672
Restaurant facility expenditures
3,762
4,477
4,722
Other, including information technology
3,623
301
149
$ 34,071
$ 17,967
$ 27,543
Shared Services:
Information technology
$ 7,315
$ 5,786
$ 4,162
Other, including facility improvements
2,912
5,914
2,712
$ 10,227
$ 11,700
$ 6,874
Consolidated capital expenditures
$ 86,226
$ 60,525
$ 84,690
Our capital expenditure program includes, among other things, investments in new locations and equipment, restaurant remodeling, and information
technology enhancements. In 2015, capital expenditures increased $25.7 million due primarily to an increase in spending related to building new Qdoba
restaurants, exterior lighting enhancements at our Jack in the Box restaurants, and information technology infrastructure at both brands, partially offset by a
decrease in spending related to Qdoba’s corporate support center. In 2014, capital expenditures decreased $24.2 million compared with 2013 due primarily to
a decrease in spending related to the exteriors of Jack in the Box restaurants and new Qdoba restaurants, partially offset by an increase in spending for
leasehold improvements related to Qdoba’s new corporate support center.
In fiscal 2016, capital expenditures are expected to be approximately $100-$120 million. Increased spending in fiscal 2016 is primarily related to
remodels at Qdoba company-operated restaurants, as well as increases in spending for information technology upgrades to support both brands. We plan to
open 4 new Jack in the Box and approximately 25-30 new Qdoba company-operated restaurants in fiscal 2016.
Sale of Company-Operated Restaurants — We have continued to expand franchise ownership in the Jack in the Box system primarily through the sale of
company-operated restaurants to franchisees. The following table details proceeds received in connection with our refranchising activities in each fiscal year
(dollars in thousands):



Number of restaurants sold to franchisees
21
37
81
Total proceeds
$ 3,951
$ 10,536
$ 30,619
We expect total proceeds from the sale of Jack in the Box restaurants in 2016 to be minimal.
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