For Jack In The Box in 2024, what was the dollar amount of the pre-tax income (loss)?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
t) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to pretax income (loss). The sources and tax effects of the differences are as follows (in thousands):
| | 2024 | ļ | 2023 | | 2022 | | |----------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the pre-tax income (loss) for 2024 was a loss of $(4,323). This figure is derived from the consolidated financial statements of Jack in the Box Inc. and its subsidiaries. It's important to note that this pre-tax income (loss) reflects the overall financial performance of the entire Jack In The Box organization, not just the franchised locations.
For a prospective franchisee, this pre-tax loss in 2024, compared to pre-tax incomes of $189,340 in 2023 and $161,892 in 2022, may raise concerns. While the financial performance of the overall company doesn't directly dictate the profitability of an individual franchise, it can reflect on the brand's strength and stability. A potential franchisee should investigate the reasons behind this loss and assess whether it is a temporary setback or a sign of deeper issues.
It is also important to consider the various factors that influenced the income tax amounts. For example, in 2024, nondeductible goodwill related to impairment was $35,075, and nondeductible goodwill related to the sale of company-operated restaurants was $1,787. Additionally, there was an expense (benefit) related to COLIs of $(4,703). These items can significantly impact the overall tax liability and should be understood in the context of the company's financial strategy.
Therefore, a prospective franchisee should carefully review the complete financial statements and consult with a financial advisor to understand the implications of these figures on their potential investment. Understanding the reasons behind the pre-tax loss and the factors influencing the effective tax rate is crucial for making an informed decision about investing in a Jack In The Box franchise.