What was the share-based compensation expense for Jack In The Box in 2023?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
The components of share-based compensation expense, included within "Selling, general, and administrative expenses" in our consolidated statements of earnings, in each fiscal year are as follows (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Nonvested restricted stock units | $ 10,128 | $ 7,598 | $ 4,544 |
| Stock options | 4 | 19 | |
| Performance share awards | 3,308 |
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 total share-based compensation expense for the company in 2023 was $11,205. This figure represents the cost recognized by Jack In The Box for stock options, restricted stock units, performance share awards, and other equity-based compensation provided to employees and directors.
Share-based compensation is a common practice among publicly traded companies like Jack In The Box. It is a way to incentivize employees and align their interests with those of the company's shareholders. The expense reflects the fair value of these equity awards, recognized over the period the employees provide service. For a franchisee, this specific expense may not directly impact their day-to-day operations. However, it is an indicator of the overall financial health and management practices of Jack In The Box.
Understanding the company's compensation structure can provide insight into how Jack In The Box attracts and retains talent, which indirectly affects the support and services available to franchisees. A stable and motivated management team can lead to better strategic decisions and a more supportive franchise system. Therefore, while the franchisee does not directly pay this expense, it is a factor that can contribute to the overall success and stability of the Jack In The Box franchise system.