What was the pre-tax income (loss) for Jack In The Box in 2024?
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 | |||
|---|---|---|---|---|---|---|
| Pre-tax income (loss) | $ (4,323) | $ 189,340 | $ 161,892 | |||
| Income tax at federal statutory rate | (908) | 21.0 % | 39,821 | 21.0 % | 33,964 | 21.0 % |
| State income taxes, net of federal benefit | (233) | 5.4 % | 10,587 | 5.6 % | 8,437 | 5.2 % |
| Stock-based compensation expense | 51 | (1.2)% | 71 | — % | 122 | 0.1 % |
| Tax credits, net of valuation allowance | (340) | 7.9 % | (818) | (0.4)% | (906) | (0.6)% |
| Nondeductible goodwill related to impairment | 35,075 | (811.5)% | _ | — % | _ | — % |
| Nondeductible goodwill related to the sale of company-operated restaurants | 1,787 | (41.3)% | 9,280 | 4.9 % | _ | — % |
| Nondeductible transaction costs | _ | — % | _ | — % | 940 | 0.6 % |
| Expense (benefit) related to COLIs | (4,703) | 108.8 % | (1,947) | (1.0)% | 3,319 | 2.1 % |
| Officers' compensation li |
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 is important to note that this pre-tax income (loss) is before considering income tax effects and other adjustments. The document further breaks down the various factors contributing to the effective tax rate, such as income tax at the federal statutory rate, state income taxes, stock-based compensation expense, tax credits, and other items. These adjustments ultimately lead to an effective tax rate of (748.9)%, resulting in a net income (loss) after taxes.
For a prospective franchisee, this information provides insight into the overall financial performance of Jack In The Box. While a pre-tax loss might raise concerns, understanding the components that contribute to the final tax rate and net income is crucial. Franchisees should further investigate the reasons behind the loss and the strategies Jack In The Box is implementing to improve profitability. Reviewing financial performance over several years, as presented in the table, can also provide a more comprehensive understanding of the company's financial trends.