What were the total restaurant impairment charges for Jack In The Box in 2022?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
,768 |
9. OTHER OPERATING EXPENSE, NET
Other operating expense, net, in the accompanying consolidated statements of earnings is comprised of the following in each fiscal year (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Acquisition, integration and strategic initiatives | $ 15,631 | $ 9,112 | $ 20,081 |
| Costs of closed restaurants and other | 2,975 | 4,786 | 4,599 |
| Restaurant impairment charges | 8,008 | 4,569 | 5,927 |
| Accelerated depreciation | 699 | 541 | 1,124 |
| Gains on acquisiti |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, the restaurant impairment charges for 2022 were $5,927. Restaurant impairment charges reflect the reduction in the book value of restaurant assets when their fair value falls below their carrying value. This can occur due to various factors, such as declining performance, changing market conditions, or physical damage to the property.
For a prospective franchisee, understanding impairment charges is crucial because they can indicate underlying issues with restaurant profitability and asset values. While these charges are not direct out-of-pocket expenses, they reflect a decline in the value of existing assets, which could impact the overall financial health of the franchise system. High impairment charges across the Jack In The Box system might suggest broader challenges that could affect individual franchise performance.
It's important to note that impairment charges can fluctuate from year to year based on specific circumstances affecting the restaurants. In 2023, these charges were $4,569, and in 2024, they increased to $8,008. Monitoring these trends over several years can provide a more comprehensive view of the financial stability and asset management practices within the Jack In The Box franchise system.
Prospective franchisees should consider these figures as part of their due diligence, investigating the reasons behind any significant impairment charges and assessing the potential impact on their investment. Consulting with a financial advisor can help in interpreting these financial statements and understanding the associated risks and opportunities.