What was the value of Jack In The Box's goodwill in October 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 goodwill impairment was not specified for October 1, 2023. However, the document does show a goodwill impairment of $162,624 for 2024.
Goodwill, in accounting terms, represents the intangible assets acquired in a business combination, such as brand reputation, customer relationships, and intellectual property. Goodwill impairment occurs when the fair value of an acquired company or asset falls below its carrying value on the balance sheet. This can happen due to various factors, such as declining financial performance, changes in market conditions, or adverse events.
For a prospective Jack In The Box franchisee, understanding goodwill and its potential impairment is crucial because it can affect the overall financial health and stability of the company. A significant goodwill impairment, such as the $162,624 noted in 2024, may indicate underlying issues within the business, such as underperforming assets or a decline in brand value. While the FDD does not specify the exact reasons for the impairment, it is essential for potential franchisees to investigate further and assess the potential risks associated with investing in the franchise.
Given that the specific goodwill value for October 2023 is not provided, it would be prudent for a prospective franchisee to directly inquire with Jack In The Box about the details of the goodwill impairment, its causes, and its potential impact on the franchise system. This information can help in making a more informed decision about whether to invest in a Jack In The Box franchise.