What was the depreciation and amortization expense 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 depreciation and amortization expense for the company in 2023 was $62,287. This figure represents the expense recognized for the wearing out or consumption of the company's assets (depreciation) and the amortization of intangible assets over their useful lives.
For a prospective Jack In The Box franchisee, understanding depreciation and amortization is crucial because it reflects the capital investments made by the company and how these investments are being accounted for over time. While franchisees do not directly bear this expense on the franchisor's balance sheet, it provides insight into the financial management and capital expenditure strategies of Jack In The Box. Higher depreciation and amortization expenses might indicate significant investments in assets, which could translate to better infrastructure or resources available to support franchisees.
It's important to note that depreciation and amortization are non-cash expenses, meaning they do not represent actual cash outflows. Instead, they are accounting adjustments that allocate the cost of assets over their useful lives. Monitoring these expenses can help franchisees assess the financial health and investment patterns of Jack In The Box, which indirectly impacts the support and resources available to them.
The depreciation and amortization expense can fluctuate year to year based on the company's investment strategy. For example, in 2024, the depreciation and amortization expense was $59,776, while in 2022, it was $56,100. These fluctuations can be due to new investments, disposal of old assets, or changes in accounting estimates. Understanding these trends can provide a more comprehensive view of the company's financial management and long-term strategy.