JACK IN THE BOX INCJACK
JACK IN THE BOX INC Leases Disclosure
LEASES
Nature of leases — We own restaurant sites and we also lease restaurant sites from third parties. Some of these owned or leased sites are leased and/or subleased to franchisees. Initial terms of our real estate leases are generally 20 years, exclusive of options to renew, which are generally exercisable at our sole discretion for 1 to 20 years. In some instances, our leases have provisions for contingent rentals based upon a percentage of defined revenues. Many of our restaurants also have rent escalation clauses and require the payment of property taxes, insurance, and maintenance costs. Variable lease costs include contingent rent, cost-of-living index adjustments, and payments for additional rent such as real estate taxes, insurance, and common area maintenance, which are excluded from the measurement of the lease liability. We also lease certain restaurant and office equipment with initial terms generally ranging from 3 to 8 years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
As lessor, our leases and subleases primarily consist of restaurants that have been leased to franchisees subsequent to refranchising transactions. The lease descriptions, terms, variable lease payments and renewal options are generally the same as the lessee leases described above. Revenues from leasing arrangements with our franchisees are presented in “Franchise rental revenues” in the accompanying consolidated statements of earnings, and the related expenses are presented in “Franchise occupancy expenses.”
Company as lessee — Leased assets and liabilities consisted of the following as of September 28, 2025 and September 29, 2024 (in thousands):
| September 28, 2025 | September 29, 2024 | ||||||||||
| Assets: | |||||||||||
| Operating lease ROU assets | $ | 1,371,454 | $ | 1,410,083 | |||||||
| 126 | 416 | ||||||||||
| Total ROU assets | $ | 1,371,580 | $ | 1,410,499 | |||||||
| Liabilities: | |||||||||||
| Current operating lease liabilities | $ | 159,267 | $ | 162,017 | |||||||
| 208 | 602 | ||||||||||
| Long-term operating lease liabilities | 1,259,577 | 1,286,415 | |||||||||
| — | — | ||||||||||
| Total lease liabilities | $ | 1,419,052 | $ | 1,449,034 | |||||||
________________________
(1)Included in “Property and equipment, net” on our consolidated balance sheets.
(2)Included in “Current maturities of long-term debt” and “Long-term debt, net of current maturities” on our consolidated balance sheets.
The following table presents the components of our lease costs in fiscal 2025, 2024, and 2023 (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Lease costs: | |||||||||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of ROU assets (1) | $ | 453 | $ | 492 | $ | 691 | |||||||||||
| Interest on lease liabilities (2) | 22 | 68 | 55 | ||||||||||||||
| Operating lease cost (3) | 244,644 | 243,488 | 240,153 | ||||||||||||||
| Short-term lease cost (3) | 529 | 195 | 730 | ||||||||||||||
| Variable lease cost (3)(4) | 55,751 | 51,374 | 50,448 | ||||||||||||||
| $ | 301,399 | $ | 295,617 | $ | 292,077 | ||||||||||||
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(1)Included in “Depreciation and amortization” in our consolidated statements of earnings.
(2)Included in “Interest expense, net” in our consolidated statements of earnings.
(3)Operating lease, short-term and variable lease costs associated with franchisees and company-operated restaurants are included in “Franchise occupancy expenses” and “Occupancy and other,” respectively, in our consolidated statements of earnings. For our closed restaurants, these costs are included in “Other operating expense, net” and all other costs are included in “Selling, general and administrative expenses.”
(4)Includes $44.2 million, $41.0 million, and $39.9 million in 2025, 2024, and 2023, respectively, of property taxes and common area maintenance costs which are reimbursed by sub-lessees.
The following table presents supplemental information related to leases:
| September 28, 2025 | September 29, 2024 | ||||||||||
| Weighted-average remaining lease term (in years): | |||||||||||
| Finance leases | 0.2 | 0.8 | |||||||||
| Operating leases | 11.2 | 11.1 | |||||||||
| Weighted-average discount rate: | |||||||||||
| Finance leases | 5.7 | % | 7.0 | % | |||||||
| Operating leases | 6.1 | % | 5.9 | % | |||||||
The following table presents as of September 28, 2025, the annual maturities of our lease liabilities (in thousands):
| Finance Leases | Operating Leases | ||||||||||
| Fiscal year: | |||||||||||
2026 | $ | 214 | $ | 238,490 | |||||||
| 2027 | — | 239,965 | |||||||||
| 2028 | — | 197,994 | |||||||||
| 2029 | — | 160,333 | |||||||||
| 2030 | — | 151,714 | |||||||||
| Thereafter | — | 1,027,497 | |||||||||
| Total future lease payments (1) | $ | 214 | $ | 2,015,993 | |||||||
| Less: imputed interest | (6) | (597,149) | |||||||||
| Present value of lease liabilities | $ | 208 | $ | 1,418,844 | |||||||
| Less current portion | (208) | (159,267) | |||||||||
| Long-term lease obligations | $ | — | $ | 1,259,577 | |||||||
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(1)Total future lease payments include non-cancellable commitments of $0.2 million for finance leases and $1,303.7 million for operating leases.
Assets recorded under finance leases are included in property and equipment, and consisted of the following at each fiscal year-end (in thousands):
| 2025 | 2024 | ||||||||||
| Buildings | $ | — | $ | — | |||||||
| Equipment | 5,549 | 6,003 | |||||||||
| Less accumulated amortization | (5,423) | (5,587) | |||||||||
| $ | 126 | $ | 416 | ||||||||
The following table includes supplemental cash flow and non-cash information related to our lessee leases (in thousands):
| 2025 | 2024 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows from operating leases | $ | 240,732 | $ | 218,916 | |||||||
| Operating cash flows from financing leases | $ | 22 | $ | 68 | |||||||
| Financing cash flows from financing leases | $ | 583 | $ | 617 | |||||||
| Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: | |||||||||||
| Right-of-use assets obtained in exchange for new operating lease obligations | $ | 143,795 | $ | 191,923 | |||||||
| Right-of-use assets obtained in exchange for new financing lease obligations | $ | — | $ | — | |||||||
Sale and leaseback transactions — In fiscal 2025, there were no sale and leaseback transactions.
In fiscal 2024, we sold one restaurant property in a sale and leaseback transaction for net proceeds of $1.7 million, and recorded a total loss of less than $0.1 million. The lease has been accounted for as an operating lease and contains an initial term of 20 years.
In fiscal 2023, we sold one restaurant properties in sale and leaseback transactions for net proceeds of $3.7 million, and recorded total losses of $0.1 million. The leases have been accounted for as operating leases and contain initial terms of 16 years and 20 years.
Company as lessor — The following table presents rental income (in thousands):
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Owned Properties | Leased Properties | Total | Owned Properties | Leased Properties | Total | ||||||||||||||||||||||||||||||
| Operating lease income - franchise | $ | 16,859 | $ | 245,062 | $ | 261,921 | $ | 18,301 | $ | 242,111 | $ | 260,412 | |||||||||||||||||||||||
| Variable lease income - franchise | 12,467 | 92,888 | 105,355 | 12,522 | 100,903 | 113,425 | |||||||||||||||||||||||||||||
| Amortization of sublease assets and liabilities, net | — | 1,367 | 1,367 | — | 1,591 | 1,591 | |||||||||||||||||||||||||||||
| $ | 29,326 | $ | 339,317 | $ | 368,643 | $ | 30,823 | $ | 344,605 | $ | 375,428 | ||||||||||||||||||||||||
| Operating lease income - closed restaurants and other (1) | $ | 223 | $ | 8,147 | $ | 8,370 | $ | 31 | $ | 7,662 | $ | 7,693 | |||||||||||||||||||||||
________________________
(1)Primarily relates to closed restaurant properties included in “Other operating expense, net” in our consolidated statements of earnings.
The following table presents as of September 28, 2025, future minimum rental receipts for non-cancellable leases and subleases (in thousands):
| September 28, 2025 | |||||
| Fiscal year: | |||||
2026 | $ | 260,867 | |||
| 2027 | 261,171 | ||||
| 2028 | 216,010 | ||||
| 2029 | 171,837 | ||||
| 2030 | 165,455 | ||||
| Thereafter | 1,128,479 | ||||
| Total minimum rental receipts | $ | 2,203,819 | |||
Assets held for lease and included in property and equipment consisted of the following at each fiscal year-end (in thousands):
| September 28, 2025 | September 29, 2024 | ||||||||||
| Land | $ | 66,796 | $ | 71,130 | |||||||
| Buildings | 789,797 | 763,697 | |||||||||
| Equipment | 1,727 | 716 | |||||||||
| 858,320 | 835,543 | ||||||||||
| Less accumulated depreciation | (704,564) | (669,459) | |||||||||
| $ | 153,756 | $ | 166,084 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 19, 2025 | Showing above |
| 2024 | Nov 21, 2024 | |
| 2023 | Nov 21, 2023 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.