What were the 'Acquisition, integration and strategic initiatives' expenses for Jack In The Box in 2023?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The following table provides information related to our operating segments in each period (in thousands):
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues by segment: | ||||
| Jack in the Box restaurant operations | $ | 1,197,420 | $ 1,195,311 | $ 1,151,188 |
| Del Taco restaurant operations | 373,886 | 496,995 | 316,895 | |
| Consolidated revenues | $ | 1,571,306 | $ 1,692,306 | $ 1,468,083 |
| Segment profit reconciliation: | _ | |||
| Jack in the Box segment profit | $ | 362,377 | $ 381,171 | $ 383,794 |
| Del Taco segment profit | 28,968 | 45,730 | 62,353 | |
| Shared services | (77,138) | (87,862) | (107,730) | |
| $ | 314,207 | $ 339,039 | $ 338,417 | |
| Depreciation and amortization | 59,776 | 62,287 | 56,100 | |
| Acquisition, integration and strategic initiatives | 15,631 | 9,112 | 20,081 | |
| Share-based compensation | 13,471 | 11,205 | 7,122 | |
| Net COLI (gains) losses | (14,390) | (5,953) | 9,911 | |
| Goodwill impairment | 162,624 | _ | ||
| Gains on the sale of company-operated restaurants | (3,255) | (17,998) | (3,878) | |
| Gains on acquisition of |
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 company's expenses for 'Acquisition, integration and strategic initiatives' totaled $9,112 in 2023. This figure reflects costs associated with the company's efforts to acquire, integrate, and strategically develop its business. These initiatives can include mergers, acquisitions, and other strategic projects aimed at growing the Jack In The Box brand.
For a prospective franchisee, understanding these expenses can provide insight into the company's strategic direction and investment areas. While franchisees may not directly bear these costs, they can benefit from the company's strategic initiatives through enhanced brand recognition, improved operational efficiencies, and expanded market presence. These investments can lead to increased customer traffic and sales for individual franchise locations.
It's important to note that these expenses can fluctuate from year to year based on the company's strategic priorities and market conditions. For example, in 2024, these expenses increased to $15,631, while in 2022, they were $20,081. Reviewing these trends over several years can offer a more comprehensive understanding of Jack In The Box's long-term strategic investments. Franchisees should consider these figures as part of their overall assessment of the company's financial health and strategic vision.