What was the total amount of pre-opening costs for Jack In The Box in 2022 (in thousands)?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
it | | (851,798) | | (718,327) | | | $ | 2,735,629 | $ | 3,001,092 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Fiscal Year
| _ | 2024 | 2023 | 2022 | ||
|---|---|---|---|---|---|
| Revenues: | |||||
| Company restaurant sales | $ | 709,035 | $ | 846,278 | $ 701,070 |
| Franchise rental revenues | 375,428 | 364,591 | 340,391 | ||
| Franchise royalties and other | 238,170 | 240,515 | 216,821 | ||
| Franchise contributions for advertising and other services | 248,673 1,571,306 | 240,922 1,692,306 | 209,801 1,468,083 | ||
| Operating costs and expenses, net: | |||||
| Food and packaging | 199,271 | 250,836 | 216,345 | ||
| Payroll and employee benefits | 238,047 | 274,598 | 232,250 | ||
| Occupancy and other | 139,305 | 163,273 | 135,803 | ||
| Franchise occupancy expenses | 245,379 | 229,602 | 215,609 | ||
| Franchise support and other costs | 17,281 | 12,328 | 16,490 | ||
| Franchise advertising and other services expenses | 259,131 | 253,533 | 218,272 | ||
| Selling, general, and administrative expenses | 143,233 | 172,872 | 130,823 | ||
| Depreciation and amortization | 59,776 | 62,287 | 56,100 | ||
| Pre-opening costs | 3,182 | 1,385 | 1,110 | ||
| Goodwill impairment | 162,624 | _ | _ | ||
| Other operating expense, net | 24,796 | 10,837 | 889 | ||
| Gains on the sale of company-operated restaurants | (3,255) 1,488,770 | (17,998) 1,413,553 | (3,878) 1,219,813 | ||
| Earnings from operations | 82,536 | 278,753 | 248,270 | ||
| Other pension and post-retirement expenses, net | 6,843 | 6,967 | 303 | ||
| Interest expense, net | 80,016 | 82,446 | 86,075 | ||
| Earnings from continuing operations and before income taxes | (4,323) | 189,340 | 161,892 | ||
| Income taxes | 32,372 | 58,514 | 46,111 | ||
| Net (loss) earnings | $ | (36,695) | $ | 130,826 | $ 115,781 |
| Net (loss) earnings per share — basic | $ | (1.87) | $ | 6.35 | $ 5.46 |
| Ne |
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 pre-opening costs for the company-operated restaurants in 2022 were $1.110 million. This figure reflects the expenses Jack In The Box incurred before opening new company-owned locations, not franchisee-owned locations. These costs are a standard part of establishing a new restaurant and are distinct from ongoing operational expenses.
For a prospective franchisee, understanding these pre-opening costs is crucial because while this particular figure applies to company-operated restaurants, franchisees will also face their own set of pre-opening expenses. These typically include costs associated with site selection, construction or leasehold improvements, training, initial inventory, and marketing. While the FDD provides an estimate of these costs in Item 7, this figure from the financial statements gives franchisees insight into the types of expenses Jack In The Box considers as pre-opening.
It's important to note that the pre-opening costs reported in the financial statements can fluctuate from year to year based on the number of new restaurants opened and the specific circumstances of each location. Factors such as construction delays, permitting issues, or unforeseen expenses can all impact the final pre-opening costs. Therefore, franchisees should carefully review Item 7 of the FDD and conduct their own due diligence to develop a realistic budget for their specific location.