SAN DIEGO--(BUSINESS WIRE)-- Jack in the Box Inc. (NASDAQ: JACK) today reported earnings from continuing operations of $32.6 million, or $0.98 per diluted share, for the fourth quarter ended October 2, 2016, compared with $23.8 million, or $0.65 per diluted share, for the fourth quarter of fiscal 2015. Fiscal 2016 earnings from continuing operations totaled $126.3 million, or $3.70 per diluted share, compared with $112.6 million, or $2.95 per diluted share in fiscal 2015.

Operating earnings per share, a non-GAAP measure which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, were $1.03 in the fourth quarter of fiscal 2016 compared with $0.62 in the prior year quarter. For fiscal year 2016, operating earnings per share were $3.86 compared with $3.00 last year.

The fourth quarter and fiscal year ended October 2, 2016, included 13 weeks and 53 weeks, respectively, as compared to 12 weeks and 52 weeks in the fourth quarter and fiscal year ended September 27, 2015, respectively. The company estimates that the extra week benefited diluted earnings per share by approximately 9 cents in both the fourth quarter and fiscal 2016.

A reconciliation of non-GAAP measurements to GAAP results is provided below, with additional information included in the attachment to this release. Figures may not add due to rounding.

		13 Weeks Ended				12 Weeks Ended				53 Weeks Ended				52 Weeks Ended
		Oct. 2,2016				Sept. 27,2015				Oct. 2,2016				Sept. 27,2015
Diluted earnings per share fromcontinuing operations – GAAP		$	0.98			$	0.65			$	3.70			$	2.95
Restructuring charges		0.05				0.00				0.19				0.00
(Gains) losses from refranchising		0.00				(0.02		)		(0.02		)		0.05
Operating earnings per share – Non-GAAP		$	1.03			$	0.62			$	3.86			$	3.00

During fiscal 2016, the company announced plans to reduce general and administrative costs. A comprehensive review of its organizational structure identified cost savings from workforce reductions, relocation and consolidation of the Qdoba® corporate support center, refranchising initiatives, and information technology synergies across both brands. As a result, restructuring charges of $2.3 million, or approximately $0.05 per diluted share, were recorded during the fourth quarter. Restructuring charges for fiscal year 2016 totaled $10.1 million, or approximately $0.19 per diluted share. Charges consist primarily of employee severance pay and facility closing costs. These charges are included in “impairment and other charges, net” in the accompanying consolidated statements of earnings.

Lenny Comma, chairman and chief executive officer, said, “Operating earnings per share for the fourth quarter exceeded our expectations, due primarily to a reduction in G&A costs resulting from our restructuring initiatives, as well as lower impairment charges and a lower tax rate. We were pleased that Jack in the Box® system same-store sales outperformed sluggish industry trends, and although sales and traffic growth at Qdoba were solid, margins were hampered by the impact of new restaurant openings.

“Operating earnings per share for the year (excluding the benefit of the 53rd week) grew more than 25 percent, the fifth consecutive year of growth in excess of 20 percent.

“We are happy with the progress we made on our key strategic initiatives during the year, as we made significant headway on reducing our G&A, increased our borrowing capacity to support our capital structure goals, and began implementing plans to increase the franchise mix at Jack in the Box to over 90 percent of the system.”

Increase in same-store sales:

			13 Weeks Ended		12 Weeks Ended		53 Weeks Ended		52 Weeks Ended
			Oct. 2,2016		Sept. 27,2015		Oct. 2,2016		Sept. 27,2015
Jack in the Box:
	Company		0.5%		4.1%		0.0%		5.1%
	Franchise		2.4%		6.9%		1.6%		7.0%
	System		2.0%		6.2%		1.2%		6.5%
Qdoba:
	Company		1.2%		6.1%		1.7%		8.3%
	Franchise		0.4%		7.2%		1.1%		10.4%
	System		0.8%		6.6%		1.4%		9.3%

Jack in the Box system same-store sales increased 2.0 percent for the quarter and exceeded the QSR sandwich segment by 1.3 percentage points for the comparable period, according to The NPD Group’s SalesTrack® Weekly for the 13-week time period ended October 2, 2016. Included in this segment are 16 of the top QSR sandwich and burger chains in the country. Company same-store sales increased 0.5 percent in the fourth quarter, with average check up 3.5 percent.

Qdoba same-store sales increased 0.8 percent system-wide and 1.2 percent for company restaurants in the fourth quarter. Company same-store sales reflected a 0.7 percent increase in transactions as well as growth in catering sales.

Consolidated restaurant operating margin decreased by 30 basis points to 19.7 percent of sales in the fourth quarter of 2016, compared with 20.0 percent of sales in the year-ago quarter. Restaurant operating margin for Jack in the Box company restaurants increased 70 basis points to 21.0 percent of sales. The increase was due primarily to favorable food and packaging costs, which were partially offset by higher costs related to equipment upgrades, maintenance and repair expenses, and minimum wage increases in California that went into effect in January 2016. The decrease in food and packaging costs as a percentage of sales resulted from the benefit of commodity deflation of approximately 4.0 percent in the quarter, favorable product mix changes and menu price increases. Restaurant operating margin for Qdoba company restaurants decreased 220 basis points to 17.3 percent of sales. The decrease was due primarily to costs associated with a greater number of new restaurant openings, increased promotional activity, and higher costs related to technology upgrades which more than offset the sales growth and benefits from commodity deflation of approximately 3.4 percent in the quarter.

Franchise margin as a percentage of total franchise revenues improved to 53.7 percent in the fourth quarter from 51.4 percent in the prior year quarter. The improvement was due primarily to higher royalty revenue for both brands and higher rental income from Jack in the Box franchised restaurants resulting from increases in franchise average unit volumes.

SG&A expense for the fourth quarter decreased by $6.3 million and was 12.1 percent of revenues as compared to 15.4 percent in the prior year quarter. Key items contributing to the decrease were lower advertising costs at Qdoba due to the timing of promotional activities and a $1.2 million decrease in pension and postretirement benefits related to the sunsetting of the company's qualified pension plan on December 31, 2015. In addition, mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $0.2 million in the fourth quarter of 2016 as compared to a negative impact of $1.1 million in the fourth quarter of 2015, resulting in a year-over-year decrease in SG&A of $1.3 million. These decreases were partially offset by the impact of the 53rd week.

Interest expense, net, increased by $3.5 million in the fourth quarter due to increased leverage and a higher effective interest rate for 2016.

Capital Allocation

The company repurchased approximately 425,000 shares of its common stock in the fourth quarter of 2016 at an average price of $98.42 per share for an aggregate cost of $41.9 million. During fiscal year 2016, the company repurchased approximately 3,876,000 shares at an average price of $75.29 per share, for an aggregate cost of $291.9 million. As of the end of fiscal year 2016, the company had $408.2 million remaining under stock-buyback programs authorized by its Board of Directors, of which $108.2 million expires in November 2017 and $300.0 million expires in November 2018.

As previously disclosed, the company made an accelerated pension contribution of $80 million during the fourth quarter of 2016. This tax-deductible contribution will decrease the company's future G&A costs, as well as reduce, if not fully eliminate, pension contributions over the next several years.

In addition, the company acquired 14 franchised Qdoba restaurants in one market during the fourth quarter of 2016 for approximately $20 million.

The company also announced today that on November 17, 2016, its Board of Directors declared a quarterly cash dividend of $0.40 per share on the company’s common stock, representing a 33 percent increase from the previous quarterly dividend of $0.30 per share. The dividend is payable on December 16, 2016, to shareholders of record at the close of business on December 5, 2016.

Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the first quarter and fiscal year ending October 1, 2017. Fiscal 2017 is a 52-week year, with 16 weeks in the first quarter, 12 weeks in each of the second, third and fourth quarters. Fiscal 2016 was a 53-week year, with the additional week occurring in the fourth quarter.

First quarter fiscal year 2017 guidance

• Same-store sales increase of approximately 2.0 to 4.0 percent at Jack in the Box system restaurants versus a 1.4 percent increase in the year-ago quarter.
• Same-store sales of approximately flat to up 1.0 percent at Qdoba company restaurants versus a 1.5 percent increase in the year-ago quarter.

Fiscal year 2017 guidance

• Same-store sales increase of approximately 2.0 to 3.0 percent at Jack in the Box system restaurants.
• Same-store sales increase of approximately 2.0 to 3.0 percent at Qdoba company restaurants.
• Commodity deflation of approximately flat to down 1 percent for both Jack in the Box and Qdoba.
• Consolidated restaurant operating margin of approximately 20.0 to 21.0 percent.
• SG&A as a percentage of revenues of approximately 11.0 to 11.5 percent as compared to 12.7 percent in fiscal 2016.
• Impairment and other charges as a percentage of revenues of approximately 70 basis points, excluding restructuring charges.
• Approximately 20 to 25 new Jack in the Box restaurants opening system-wide, the majority of which will be franchise locations.
• Approximately 60 to 70 new Qdoba restaurants, of which approximately 40 are expected to be company locations.
• Capital expenditures of $105 to $115 million.
• Tax rate of approximately 38 percent.
• Operating earnings per share, which the company defines as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising, ranging from $4.55 to $4.75. This guidance assumes share repurchases of approximately $408 million during the year, representing the amount remaining under current Board authorizations.

Conference call

The company will host a conference call for financial analysts and investors on Tuesday, November 22, 2016, beginning at 8:30 a.m. PT (11:30 a.m. ET). The conference call will be broadcast live over the Internet via the Jack in the Box Inc. corporate website. To access the live call through the Internet, log onto the Investors section of the Jack in the Box Inc. website at http://investors.jackinthebox.com at least 15 minutes prior to the event in order to download and install any necessary audio software. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days, beginning at approximately 11:30 a.m. PT on November 22.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Eats®, a leader in fast-casual dining, with approximately 700 restaurants in 47 states, the District of Columbia and Canada. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.

Safe harbor statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Such statements are subject to substantial risks and uncertainties. A variety of factors could cause the company’s actual results to differ materially from those expressed in the forward-looking statements, including the following: the success of new products and marketing initiatives; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company's ability to reduce G&A; the company's ability to execute its refranchising strategy; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, and risks relating to expansion into new markets; litigation risks; food safety incidents or negative publicity impacting the reputations of the company's brands; and stock market volatility. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

JACK IN THE BOX INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS(Unaudited)

Operating earnings per share, a non-GAAP measure, is defined by the company as diluted earnings per share from continuing operations on a GAAP basis excluding restructuring charges and gains or losses from refranchising. Management believes this non-GAAP financial measure provides important supplemental information to assist investors in analyzing the performance of the company’s core business. In addition, the company uses operating earnings per share in establishing performance goals for purposes of executive compensation. The company encourages investors to rely upon its GAAP numbers but includes this non-GAAP financial measure as a supplemental metric to assist investors. This non-GAAP financial measure should not be considered as a substitute for, or superior to, financial measures calculated in accordance with GAAP. In addition, this non-GAAP financial measure used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Below is a reconciliation of non-GAAP operating earnings per share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations. Figures may not add due to rounding.

		13 Weeks Ended				12 Weeks Ended				53 Weeks Ended				52 Weeks Ended
		Oct. 2,2016				Sept. 27,2015				Oct. 2,2016				Sept. 27,2015
Diluted earnings per share fromcontinuing operations – GAAP		$	0.98			$	0.65			$	3.70			$	2.95
Restructuring charges		0.05				0.00				0.19				0.00
(Gains) losses from refranchising		0.00				(0.02		)		(0.02		)		0.05
Operating earnings per share – Non-GAAP		$	1.03			$	0.62			$	3.86			$	3.00

JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per share data) (Unaudited)
		13 WeeksEnded				12 WeeksEnded				53 WeeksEnded				52 WeeksEnded
		October 2, 2016				September 27, 2015				October 2, 2016				September 27, 2015
Revenues:
Company restaurant sales		$	300,693			$	265,408			$	1,204,535			$	1,156,863
Franchise rental revenues		57,689				52,666				232,907				226,702
Franchise royalties and other		40,037				35,994				161,889				156,752
		398,419				354,068				1,599,331				1,540,317
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging		90,200				82,198				363,002				361,988
Payroll and employee benefits		83,516				71,654				334,470				313,302
Occupancy and other		67,814				58,421				264,158				246,023
Total company restaurant costs		241,530				212,273				961,630				921,313
Franchise occupancy expenses		41,677				39,281				170,152				170,102
Franchise support and other costs		3,568				3,773				15,991				15,688
Selling, general and administrative expenses		48,281				54,592				203,816				221,145
Impairment and other charges, net		4,459				3,689				19,057				11,757
(Gains) losses on the sale of company-operated restaurants		(6		)		(1,214		)		(1,230		)		3,139
		339,509				312,394				1,369,416				1,343,144
Earnings from operations		58,910				41,674				229,915				197,173
Interest expense, net		8,382				4,866				31,081				18,803
Earnings from continuing operations and before income taxes		50,528				36,808				198,834				178,370
Income taxes		17,967				13,030				72,564				65,769
Earnings from continuing operations		32,561				23,778				126,270				112,601
Losses from discontinued operations, net of income tax benefit		(580		)		(637		)		(2,197		)		(3,789		)
Net earnings		$	31,981			$	23,141			$	124,073			$	108,812
Net earnings per share - basic:
Earnings from continuing operations		$	1.00			$	0.66			$	3.74			$	3.00
Losses from discontinued operations		(0.02		)		(0.02		)		(0.07		)		(0.10		)
Net earnings per share (1)		$	0.98			$	0.64			$	3.68			$	2.89
Net earnings per share - diluted:
Earnings from continuing operations		$	0.98			$	0.65			$	3.70			$	2.95
Losses from discontinued operations		(0.02		)		(0.02		)		(0.06		)		(0.10		)
Net earnings per share (1)		$	0.97			$	0.63			$	3.63			$	2.85
Weighted-average shares outstanding:
Basic		32,694				36,276				33,735				37,587
Diluted		33,085				36,822				34,146				38,215
Cash dividends declared per common share		$	0.30			$	0.30			$	1.20			$	1.00

____________________________
(1)			Earnings per share may not add due to rounding.

JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited)
		October 2, 2016				September 27, 2015
ASSETS
Current assets:
Cash		$	17,030			$	17,743
Accounts and other receivables, net		73,360				47,975
Inventories		8,229				7,376
Prepaid expenses		40,398				16,240
Assets held for sale		14,259				15,516
Other current assets		2,129				3,106
Total current assets		155,405				107,956
Property and equipment, at cost:
Land		117,166				112,991
Buildings		1,116,244				1,091,237
Restaurant and other equipment		331,644				315,235
Construction in progress		40,522				43,914
		1,605,576				1,563,377
Less accumulated depreciation and amortization		(886,526		)		(835,114		)
Property and equipment, net		719,050				728,263
Intangible assets, net		14,042				14,765
Goodwill		166,046				149,027
Other assets, net		294,248				303,968
		$	1,348,791			$	1,303,979
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt		$	57,574			$	26,677
Accounts payable		40,736				32,137
Accrued liabilities		181,250				170,575
Total current liabilities		279,560				229,389
Long-term debt, net of current maturities		937,512				688,579
Other long-term liabilities		348,925				370,058
Stockholders’ (deficit) equity:
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued		—				—
Common stock $0.01 par value, 175,000,000 shares authorized, 81,598,524 and 81,096,156 issued, respectively		816				811
Capital in excess of par value		432,564				402,986
Retained earnings		1,399,721				1,316,119
Accumulated other comprehensive loss		(187,021		)		(132,530		)
Treasury stock, at cost, 49,190,992 and 45,314,529 shares, respectively		(1,863,286		)		(1,571,433		)
Total stockholders’ (deficit) equity		(217,206		)		15,953
		$	1,348,791			$	1,303,979

JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
		53 WeeksEnded				52 WeeksEnded
		October 2, 2016				September 27, 2015
Cash flows from operating activities:
Net earnings		$	124,073			$	108,812
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		92,844				89,468
Deferred finance cost amortization		2,736				2,309
Excess tax benefits from share-based compensation arrangements		(7,461		)		(18,602		)
Deferred income taxes		34,973				(3,191		)
Share-based compensation expense		11,455				12,420
Pension and postretirement expense		13,484				18,749
Gains on cash surrender value of company-owned life insurance		(5,365		)		1,240
(Gains) losses on the sale of company-operated restaurants		(1,230		)		3,139
Losses on the disposition of property and equipment		2,654				1,847
Impairment charges and other		4,759				6,815
Changes in assets and liabilities:
Accounts and other receivables		(28,181		)		(82		)
Inventories		(713		)		105
Prepaid expenses and other current assets		(15,367		)		35,255
Accounts payable		2,225				2,281
Accrued liabilities		8,662				798
Pension and postretirement contributions		(101,052		)		(25,374		)
Other		(4,314		)		(9,114		)
Cash flows provided by operating activities		134,182				226,875
Cash flows from investing activities:
Purchases of property and equipment		(96,615		)		(86,226		)
Purchases of assets intended for sale and leaseback		(9,785		)		(10,396		)
Proceeds from the sale and leaseback of assets		17,123				—
Proceeds from the sale of company-operated restaurants		1,439				3,951
Collections on notes receivable		3,555				5,917
Acquisition of franchise-operated restaurants		(19,816		)		—
Other		(299		)		2,281
Cash flows used in investing activities		(104,398		)		(84,473		)
Cash flows from financing activities:
Borrowings on revolving credit facilities		705,000				857,000
Repayments of borrowings on revolving credit facilities		(817,578		)		(768,000		)
Proceeds from issuance of debt		417,578				300,000
Principal repayments on debt		(26,154		)		(198,397		)
Debt issuance costs		(2,385		)		(2,030		)
Dividends paid on common stock		(40,295		)		(37,390		)
Proceeds from issuance of common stock		10,564				15,170
Repurchases of common stock		(284,645		)		(320,163		)
Excess tax benefits from share-based compensation arrangements		7,461				18,602
Cash flows used in financing activities		(30,454		)		(135,208		)
Effect of exchange rate changes on cash		(43		)		(29		)
Net (decrease) increase in cash		(713		)		7,165
Cash at beginning of period		17,743				10,578
Cash at end of period		$	17,030			$	17,743

JACK IN THE BOX INC. AND SUBSIDIARIESSUPPLEMENTAL INFORMATION

The following table presents certain income and expense items included in our consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

CONSOLIDATED STATEMENTS OF EARNINGS DATA (Unaudited)
		13 WeeksEnded			12 WeeksEnded			53 WeeksEnded			52 WeeksEnded
		October 2, 2016			September 27, 2015			October 2, 2016			September 27, 2015
Revenues:
Company restaurant sales		75.5	%		75.0	%		75.3	%		75.1	%
Franchise rental revenues		14.5	%		14.9	%		14.6	%		14.7	%
Franchise royalties and other		10.0	%		10.2	%		10.1	%		10.2	%
Total revenues		100.0	%		100.0	%		100.0	%		100.0	%
Operating costs and expenses, net:
Company restaurant costs:
Food and packaging (1)		30.0	%		31.0	%		30.1	%		31.3	%
Payroll and employee benefits (1)		27.8	%		27.0	%		27.8	%		27.1	%
Occupancy and other (1)		22.6	%		22.0	%		21.9	%		21.3	%
Total company restaurant costs (1)		80.3	%		80.0	%		79.8	%		79.6	%
Franchise occupancy expenses (2)		72.2	%		74.6	%		73.1	%		75.0	%
Franchise support and other costs (3)		8.9	%		10.5	%		9.9	%		10.0	%
Selling, general and administrative expenses		12.1	%		15.4	%		12.7	%		14.4	%
Impairment and other charges, net		1.1	%		1.0	%		1.2	%		0.8	%
(Gains) losses on the sale of company-operated restaurants		0.0	%		(0.3	)%		(0.1	)%		0.2	%
Earnings from operations		14.8	%		11.8	%		14.4	%		12.8	%
Income tax rate (4)		35.6	%		35.4	%		36.5	%		36.9	%

____________________________
(1)			As a percentage of company restaurant sales.
(2)			As a percentage of franchise rental revenues.
(3)			As a percentage of franchise royalties and other.
(4)			As a percentage of earnings from continuing operations and before income taxes.

The following table presents Jack in the Box and Qdoba company restaurant sales, costs and margin, and restaurant costs and margin as a percentage of the related sales. Percentages may not add due to rounding.

SUPPLEMENTAL COMPANY RESTAURANT OPERATIONS DATA (Dollars in thousands) (Unaudited)
		13 Weeks Ended							12 Weeks Ended							53 Weeks Ended							52 Weeks Ended
		October 2, 2016							September 27, 2015							October 2, 2016							September 27, 2015
Jack in the Box:
Company restaurant sales		$	193,639						$	176,739						$	789,040						$	782,525
Company restaurant costs:
Food and packaging		56,396				29.1	%		55,025				31.1	%		235,538				29.9	%		247,931				31.7	%
Payroll and employee benefits		55,275				28.5	%		48,371				27.4	%		223,019				28.3	%		215,598				27.6	%
Occupancy and other		41,347				21.4	%		37,484				21.2	%		162,869				20.6	%		157,281				20.1	%
Total company restaurant costs		153,018				79.0	%		140,880				79.7	%		621,426				78.8	%		620,810				79.3	%
Restaurant margin		$	40,621			21.0	%		$	35,859			20.3	%		$	167,614			21.2	%		$	161,715			20.7	%
Qdoba:
Company restaurant sales		$	107,054						$	88,669						$	415,495						$	374,338
Company restaurant costs:
Food and packaging		33,804				31.6	%		27,173				30.6	%		127,464				30.7	%		114,057				30.5	%
Payroll and employee benefits		28,241				26.4	%		23,283				26.3	%		111,451				26.8	%		97,704				26.1	%
Occupancy and other		26,467				24.7	%		20,937				23.6	%		101,289				24.4	%		88,742				23.7	%
Total company restaurant costs		88,512				82.7	%		71,393				80.5	%		340,204				81.9	%		300,503				80.3	%
Restaurant margin		$	18,542			17.3	%		$	17,276			19.5	%		$	75,291			18.1	%		$	73,835			19.7	%

The following table presents franchise revenues, costs and margin in each period:

SUPPLEMENTAL FRANCHISE OPERATIONS DATA (Dollars in thousands) (Unaudited)
		13 WeeksEnded				12 WeeksEnded				53 WeeksEnded				52 WeeksEnded
		October 2, 2016				September 27, 2015				October 2, 2016				September 27, 2015
Franchise rental revenues		$	57,689			$	52,666			$	232,907			$	226,702
Royalties		39,176				35,100				158,514				152,759
Franchise fees and other		861				894				3,375				3,993
Franchise royalties and other		40,037				35,994				161,889				156,752
Total franchise revenues		97,726				88,660				394,796				383,454
Rental expense		34,025				31,638				137,808				136,974
Depreciation and amortization		7,652				7,643				32,344				33,128
Franchise occupancy expenses		41,677				39,281				170,152				170,102
Franchise support and other costs		3,568				3,773				15,991				15,688
Total franchise costs		45,245				43,054				186,143				185,790
Franchise margin		$	52,481			$	45,606			$	208,653			$	197,664
Franchise margin as a % of franchise revenues		53.7		%		51.4		%		52.9		%		51.5		%

The following table provides information related to our operating segments in each period:

SUPPLEMENTAL SEGMENT REPORTING INFORMATION (In thousands) (Unaudited)
		13 WeeksEnded				12 WeeksEnded				53 WeeksEnded				52 WeeksEnded
		October 2, 2016				September 27, 2015				October 2, 2016				September 27, 2015
Revenues by segment:
Jack in the Box restaurant operations		$	286,120			$	260,442			$	1,162,258			$	1,145,176
Qdoba restaurant operations		112,299				93,626				437,073				395,141
Consolidated revenues		$	398,419			$	354,068			$	1,599,331			$	1,540,317
Earnings from operations by segment:
Jack in the Box restaurant operations		$	71,982			$	57,707			$	290,346			$	265,230
Qdoba restaurant operations		13,718				9,999				47,250				47,264
Shared services and unallocated costs		(26,796		)		(27,246		)		(108,911		)		(112,182		)
Gains (losses) on the sale of company-operated restaurants		6				1,214				1,230				(3,139		)
Consolidated earnings from operations		58,910				41,674				229,915				197,173
Interest expense, net		8,382				4,866				31,081				18,803
Consolidated earnings from continuing operations and before income taxes		$	50,528			$	36,808			$	198,834			$	178,370
Total depreciation expense by segment:
Jack in the Box restaurant operations		$	15,878			$	15,546			$	66,287			$	64,597
Qdoba restaurant operations		4,903				3,924				19,306				17,103
Shared services and unallocated costs		1,553				1,633				6,489				7,078
Consolidated depreciation expense		$	22,334			$	21,103			$	92,082			$	88,778

The following table summarizes the changes in the number and mix of Jack in the Box ("JIB") and Qdoba company and franchise restaurants in each fiscal year:

SUPPLEMENTAL RESTAURANT ACTIVITY INFORMATION (Unaudited)
		2016									2015
		Company			Franchise			Total			Company			Franchise			Total
Jack in the Box:
Beginning of year		413			1,836			2,249			431			1,819			2,250
New		4			12			16			2			16			18
Refranchised		(1	)		1			—			(21	)		21			—
Acquired from franchisees		1			(1	)		—			7			(7	)		—
Closed		—			(10	)		(10	)		(6	)		(13	)		(19	)
End of period		417			1,838			2,255			413			1,836			2,249
% of JIB system		18	%		82	%		100	%		18	%		82	%		100	%
Qdoba:
Beginning of year		322			339			661			310			328			638
New		35			18			53			17			22			39
Acquired from franchisees		14			(14	)		—			—			—			—
Closed		(4	)		(11	)		(15	)		(5	)		(11	)		(16	)
End of period		367			332			699			322			339			661
% of Qdoba system		53	%		47	%		100	%		49	%		51	%		100	%
Consolidated:
Total system end of period		784			2,170			2,954			735			2,175			2,910
% of consolidated system		27	%		73	%		100	%		25	%		75	%		100	%

View source version on businesswire.com: http://www.businesswire.com/news/home/20161121006089/en/

Jack in the Box Inc.

Investor Contact:

Carol DiRaimo, (858) 571-2407

or

Media Contact:

Brian Luscomb, (858) 571-2291

Source: Jack in the Box Inc.

Press Releases

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