JACK IN THE BOX INC 10-K

ITEM 9A. CONTROLS AND PROCEDURES a. Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures Based on an evaluation of the Company’s disclosure controls and procedures (as defined in Rule 13(a)-15(e) of the Securities Exchange Act of 1934, as amended), as of the end of the Company’s fiscal year ended September 28, 2025, the Company’s Chief Executive Officer and Chief Financial Officer (its principal executive officer and principal financial officer, respectively) have concluded that the Company’s disclosure controls and procedures were effective. b. Changes in Internal Control Over Financial Reporting There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s fiscal quarter ended September 28, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. c. Management’s Report on Internal Control Over Financial Reporting Management, including our principal executive officer and principal financial officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the preparation and fair presentation of published financial statements in accordance with U.S. GAAP and includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions; (2) provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made in accordance with appropriate authorizations; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Management, under the oversight of our principal executive officer, principal financial officer, and Audit Committee, assessed the effectiveness of the Company’s internal control over financial reporting as of September 28, 2025. In making this assessment, management used the criteria set forth in 2013 by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework. Management has concluded that, as of September 28, 2025, the Company’s internal control over financial reporting was effective, at a reasonable assurance level, based on these criteria. The Company’s independent registered public accounting firm, KPMG LLP, has issued an audit report on the effectiveness of our internal control over financial reporting, which follows. 39 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Jack in the Box Inc.: Opinion on Internal Control Over Financial Reporting We have audited Jack in the Box Inc. and subsidiaries’ (the Company) internal control over financial reporting as of September 28, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 28, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of September 28, 2025 and September 29, 2024, the related consolidated statements of operations, comprehensive (loss) income, cash flows and stockholders’ deficit for each of the fifty-two week periods ended September 28, 2025, September 29, 2024 and October 1, 2023, and the related notes (collectively, the consolidated financial statements), and our report dated November 19, 2025 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP San Diego, California November 19, 2025 40 ITEM 9B. OTHER INFORMATION During the last fiscal quarter, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE That portion of our definitive Proxy Statement appearing under the captions “Election of Directors,” “Director Qualifications and Biographical Information,” and “Committees of the Board” to be filed with the Commission pursuant to Regulation 14A within 120 days after September 28, 2025 and to be used in connection with our 2026 Annual Meeting of Stockholders is hereby incorporated by reference. Information regarding our executive officers is set forth in Part I of this Report under the caption “Information about our Executive Officers.” That portion of our definitive Proxy Statement appearing under the caption “Committees of the Board - Audit Committee,” relating to the members of the Company’s Audit Committee and the members of the Audit Committee who qualify as financial experts, is also incorporated herein by reference. That portion of our definitive Proxy Statement appearing under the caption “Stockholder Recommendations and Board Nominations,” relating to the procedures by which stockholders may recommend candidates for director to the Nominating and Governance Committee of the Board of Directors, is also incorporated herein by reference. We have adopted a Code of Ethics, which applies to all Jack in the Box Inc. directors, officers, and employees, including the Chief Executive Officer, Chief Financial Officer, Controller, and all of the financial team. The Code of Ethics is posted on the Company’s corporate website, www.jackintheboxinc.com (under the “Investors — Governance — Governance Documents — Code of Conduct” caption) and is available in print free of charge to any stockholder upon request. We intend to satisfy the disclosure requirement regarding any amendment to, or waiver of, a provision of the Code of Ethics for the Chief Executive Officer, Chief Financial Officer, and Controller or persons performing similar functions, by posting such information on our corporate website. No such waivers have been issued during fiscal 2025. We have also adopted a set of Corporate Governance Principles and Practices for our Board of Directors and charters for all of our Board Committees, including the Audit, Compensation, and Nominating and Governance Committees. The Corporate Governance Principles and Practices and committee charters are available on our corporate website at www.jackintheboxinc.com and in print free of charge to any shareholder who requests them. Written requests for our Code of Business Conduct and Ethics, Corporate Governance Principles and Practices and committee charters should be addressed to Jack in the Box Inc., 9357 Spectrum Center Blvd., San Diego, California 92123, Attention: Corporate Secretary. ITEM 11. EXECUTIVE COMPENSATION That portion of our definitive Proxy Statement appearing under the caption “Executive Compensation,” “Director Compensation and Stock Ownership Requirements,” “Compensation Committee Interlocks and Insider Participation,” and “Compensation Committee Report” to be filed with the Commission pursuant to Regulation 14A within 120 days after September 28, 2025 and to be used in connection with our 2026 Annual Meeting of Stockholders is hereby incorporated by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS That portion of our definitive Proxy Statement appearing under the caption “Security Ownership of Certain Beneficial Owners and Management” to be filed with the Commission pursuant to Regulation 14A within 120 days after September 28, 2025 and to be used in connection with our 2026 Annual Meeting of Stockholders is hereby incorporated by reference. Information regarding equity compensation plans under which Company common stock may be issued as of September 28, 2025 is set forth in Item 5 of this Report. 41 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE That portion of our definitive Proxy Statement appearing under the caption “Certain Relationships and Related Transactions” and “Directors’ Independence,” if any, to be filed with the Commission pursuant to Regulation 14A within 120 days after September 28, 2025 and to be used in connection with our 2026 Annual Meeting of Stockholders is hereby incorporated by reference. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES That portion of our definitive Proxy Statement appearing under the caption “Independent Registered Public Accountants Fees and Services” to be filed with the Commission pursuant to Regulation 14A within 120 days after September 28, 2025 and to be used in connection with our 2026 Annual Meeting of Stockholders is hereby incorporated by reference. PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES ITEM 15(a) (1) Financial Statements. See Index to Consolidated Financial Statements on page F-1 of this Report. ITEM 15(a) (2) Financial Statement Schedules. None. ITEM 15(a) (3) Exhibits . Number Description Form Filed with SEC 2.1 Agreement and Plan of Merger, dated as of December 5, 2021, by and among Jack in the Box Inc, Epic Merger Sub Inc., and Del Taco Restaurants, Inc. 1 8-K 12/6/2021 2.2 Stock Purchase Agreement, dated as of October 15, 2025, by and between Jack in the Box Inc., Yadav Enterprises, Inc. and Anil Yadav 8-K 10/16/2025 3.1 Certificate of Amendment of Restated Certificate of Incorporation dated September 21, 2007 8-K 9/24/2007 3.1.1 Restated Certificate of Incorporation, dated March 6, 1992 10-Q 5/14/2020 3.2 Amended and Restated Bylaws of Jack in the Box Inc., effective as of November 14, 2024 8-K 11/20/2024 4.1 Base Indenture, dated as of July 8, 2019, by and between Jack in the Box Funding, LLC, as Master Issuer, and Citibank, N.A., as Trustee and Securities Intermediary. 8-K 7/8/2019 4.2 Series 2019-1 Supplement to Base Indenture, dated as of July 8, 2019, by and between Jack in the Box Funding, LLC, as Master Issuer of the Series 2019-1 fixed rate senior secured notes, Class A-2, and Series 2019-1 variable funding senior notes, Class A-1, and Citibank, N.A., as Trustee and Series 2019-1 Securities Intermediary. 8-K 7/8/2019 4.3 Series 2022-1 Supplement to Base Indenture, dated as of February 11, 2022, by and between Jack in the Box Funding, LLC, as Master Issuer of the Series 2022-1 fixed rate senior secured notes, Class A-2, and Series 2022-1 variable funding senior notes, Class A-1, and Citibank, N.A., as Trustee and Series 2022-1 Securities Intermediary. 8-K 2/15/2022 4.4 First Supplement to the Base Indenture, dated as of February 11, 2022, by and between Jack in the Box Funding, LLC, as Master Issuer, and Citibank, N.A., as Trustee and Securities Intermediary. 8-K 2/15/2022 4.5 Stockholder Protection Rights Agreement, dated as of July 1, 2025, between the Company and Computershare Trust Company, N.A., as Rights Agent, including as Exhibit A the forms of Rights Certificate and of Election to Exercise and as Exhibit B the form of Certificate of Designation and Terms of the Participating Preferred Stock of the Company 8-K 7/1/2025 4.6 Amendment No. 1 to Stockholder Protection Rights Agreement, dated as of September 8, 2025, between the Company and Computershare Trust Company, N.A., as Rights Agent 8-K 9/8/2025 42 Number Description Form Filed with SEC 10.1.20 Class A-1 Note Purchase Agreement, dated as of July 8, 2019, by and among Jack in the Box Funding, LLC, as Master Issuer, each of Different Rules, LLC, Jack in the Box Properties, LLC and Jack in the Box SPV Guarantor, LLC, as Guarantors, Jack in the Box Inc. as Manager, the conduit investors party thereto, the financial institutions party thereto, certain funding agents, and Coöperatieve Rabobank, U.A., New York Branch, as L/C Provider, Swingline Lender and Administrative Agent 8-K 7/8/2019 10.1.21 The Guarantee and Collateral Agreement, dated July 8, 2019, by and among Jack in the Box SPV Guarantor, LLC, Different Rules, LLC, and Jack in the Box Properties, LLC, each as a Guarantor and Citibank, N.A., as Trustee. 8-K 7/8/2019 10.1.22 Management Agreement, dated as of July 8, 2019, by and among Jack in the Box Funding, LLC, as Master Issuer, certain subsidiaries of Jack in the Box Funding, LLC party thereto, Jack in the Box Inc., as Manager, and Citibank, N.A., as Trustee. 8-K 7/8/2019 10.1.23 Voting Agreement, dated as of December 5, 2021, by and among Jack in the Box Inc., Belfer Investment Partners LP and Lime Partners LLC 8-K 12/6/2021 10.1.24 Voting Agreement, dated as of December 5, 2021, by and among Jack in the Box Inc., Levy Family Partners LLC, Lawrence F. Levy, Ari Levy and certain other Del Taco stockholders party thereto 8-K 12/6/2021 10.1.25 2022-1 Class A-2 Note Purchase Agreement, dated as of February 2, 2022, by and among Jack in the Box Inc., the subsidiaries of Jack in the Box Inc. party thereto and Guggenheim Securities, LLC acting on behalf of itself and as the representative of the initial purchasers. 8-K 2/3/2022 10.1.26 Class A-1 Note Purchase Agreement, dated as of February 11, 2022, by and among Jack in the Box Funding, LLC, as Master Issuer, each of Different Rules, LLC, Jack in the Box Properties, LLC and Jack in the Box SPV Guarantor, LLC, as Guarantors, Jack in the Box Inc. as Manager, the conduit investors party thereto, the financial institutions party thereto, certain funding agents, and Coöperatieve Rabobank U.A., New York Branch, as L/C Provider, Swingline Lender and Administrative Agent. 8-K 2/15/2022 10.1.27 First Amendment to the Management Agreement, dated as of February 11, 2022, by and among Jack in the Box Funding, LLC, as Master Issuer, certain subsidiaries of Jack in the Box Funding, LLC party thereto, Jack in the Box Inc., as Manager, and Citibank, N.A., as Trustee. 8-K 2/15/2022 10.1.28 Nomination and Cooperation Agreement, dated as of November 3, 2025, by and among the Company, GreenWood Investors, LLC and the entities listed on Schedule A thereto. 8-K 11/7/2025 10.2* Form of Compensation and Benefits Assurance Agreement for Executives 10-Q 2/20/2008 10.2.1* Form of Revised Compensation and Benefits Assurance Agreement for certain officers 10-Q 5/17/2012 10.2.2* Form of Revised Compensation and Benefits Assurance Agreement for certain officers, dated May 8, 2014 10-K 11/21/2014 10.2.3* Form of Revised Compensation and Benefits Assurance Agreement for certain officers, dated June 15, 2020 10-K 11/18/2020 10.2.20* Offer Letter by and between Carl Mount and Jack in the Box Inc., dated July 18, 2024 10-K 11/20/2024 10.2.21* Dean Gordon Consulting Services Agreement, dated August 5, 2024 10-K 11/20/2024 10.2.22* Offer Letter by and between Lance Tucker and Jack in the Box Inc., dated November 6, 2024 8-K 11/12/2024 10.3* Amended and Restated Supplemental Executive Retirement Plan 10-Q 2/18/2009 10.3.1 * First Amendment to Jack in the Box Inc. Supplemental Executive Retirement Plan, As Amended and Restated Effective January 1, 2009 8-K 9/22/2015 10.4* Amended and Restated Executive Deferred Compensation Plan 10-Q 2/18/2009 10.4.1 * Jack in the Box Inc. Executive Deferred Compensation Plan, As Amended and Restated Effective January 1, 2016 8-K 9/22/2015 10.5* Amended and Restated Deferred Compensation Plan for Non-Management Directors 10-K 11/22/2006 10.8* Jack in the Box Inc. 2004 Stock Incentive Plan, Amended and Restated Effective February 17, 2012 DEF 14A 1/25/2017 43 Number Description Form Filed with SEC 10.8.1* Form of Restricted Stock Award for officers and certain members of management under the 2004 Stock Incentive Plan 10-Q 8/5/2009 10.8.2* Jack in the Box Inc. Non-Employee Director Stock Option Award Agreement under the 2004 Stock Incentive Plan 8-K 11/15/2005 10.8.3* Form of Restricted Stock Unit Award Agreement for Non-Employee Director under the 2004 Stock Incentive Plan 10-K 11/22/2022 10.8.4* Form of Restricted Stock Unit Grant Agreement for Non-Employee Directors under the 2004 Stock Incentive Plan 10-Q 5/14/2015 10.8.5* Form of Stock Option and Performance Share Awards Agreement under the 2004 Stock Incentive Plan 10-K 11/22/2013 10.8.6* Form of Time-Vested Restricted Stock Unit Award Agreement under the 2004 Stock Incentive Plan 10-K 11/22/2013 10.8.7* Form of Time-Vesting Restricted Stock Unit Award Agreement under the 2004 Stock Incentive Plan 10-Q 2/19/2015 10.8.8* Form of Stock Option and Performance Share Award Agreement under the 2004 Stock Incentive Plan 10-Q 2/19/2015 10.8.9* Form of Time-Vesting Restricted Stock Unit Award Agreement under the 2004 Stock Incentive Plan 10-Q 2/18/2016 10.8.10* Form of Stock Option and Performance Share Award Agreement under the 2004 Stock Incentive Plan 10-Q 2/18/2016 10.8.11* Form of Restricted Stock Unit Grant Agreement for Non-Employee Directors under the 2004 Stock Incentive Plan 10-Q 5/12/2016 10.8.12* Form of Time-Vesting Restricted Stock Unit Award Agreement under the 2004 Stock Incentive Plan 10-Q 2/21/2019 10.8.13* Jack in the Box Inc. Special Time-Vesting Restricted Stock Unit Award Agreement Under the 2004 Stock Incentive Plan 10-Q 2/20/2020 10.8.14* Jack in the Box Inc. Performance Share Award Agreement under the 2004 Stock Incentive Plan 10-K 11/23/2021 10.8.15* Jack in the Box Inc. Time-Vesting Restricted Stock Unit Award Agreement under the 2004 Stock Incentive Plan 10-K 11/23/2021 10.8.16* Jack in the Box, Inc Omnibus Incentive Plan, dated March 3, 2023 10-Q 5/17/2023 10.8.17* Restricted Stock Unit Award Grant Notice - Officer 10-Q 5/17/2023 10.8.18* Restricted Stock Unit Award Grant Notice - Non-Officer 10-Q 5/17/2023 10.8.19* Restricted Stock Unit Award Grant Notice - Director 10-Q 5/17/2023 10.8.20* Performance Stock Unit Award Grant Notice - Officer 10-Q 5/17/2023 10.8.21* Jack in the Box, Inc. 2023 Omnibus Incentive Plan - Option Grant Notice 10-Q 8/9/2023 10.10.2* Jack in the Box Inc. Performance Incentive Plan, Effective February 13, 2016 DEF 14A 1/11/2016 10.11* Form of Amended and Restated Indemnification Agreement between the registrant and individual directors, officers and key employees 10-Q 8/10/2012 19.1 Insider Trading Policy 10-K 11/20/24 21.1 Subsidiaries of the Registrant _____ Filed herewith 23.1 Consent of Independent Registered Public Accounting Firm _____ Filed herewith 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 _____ Filed herewith 31.2 Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 _____ Filed herewith 32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 _____ Filed herewith 32.2 Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 _____ Filed herewith 97.1 Jack in the Box Inc. Incentive Compensation Recoupment Policy 10-K 11/21/2023 101.INS iXBRL Instance Document 101.SCH iXBRL Taxonomy Extension Schema Document 101.CAL iXBRL Taxonomy Extension Calculation Linkbase Document 101.DEF iXBRL Taxonomy Extension Definition Linkbase Document 44 Number Description Form Filed with SEC 101.LAB iXBRL Taxonomy Extension Label Linkbase Document 101.PRE iXBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File formatted in iXBRL * Management contract or compensatory plan 1 Certain of the exhibits and schedules in this Exhibit have been omitted pursuant to Item 601(a)(5) and 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted exhibits and schedules to the Securities and Exchange Commission upon its request. ITEM 15(b) All required exhibits are filed herein or incorporated by reference as described in Item 15(a)(3). ITEM 15(c) All schedules have been omitted as the required information is inapplicable, immaterial or the information is presented in the consolidated financial statements or related notes. ITEM 16. FORM 10-K SUMMARY Not applicable. 45 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. JACK IN THE BOX INC. By: /s/ DAWN HOOPER Dawn Hooper Chief Financial Officer (principal financial officer) November 19, 2025 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Each person whose signature appears below constitutes and appoints Lance Tucker and Dawn Hooper, jointly and severally, his or her attorneys-in-fact, each with the power of substitution, for him or her in any and all capacities, to sign any amendments to this report, and to file the same, with exhibits thereto and other documents in connection therewith with the Securities and Exchange Commission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his substitute or substitutes may do or cause to be done by virtue hereof. Signature Title Date /s/ LANCE TUCKER Chief Executive Officer and Director (principal executive officer) November 19, 2025 Lance Tucker /s/ DAWN HOOPER Chief Financial Officer (principal financial officer and principal accounting officer) November 19, 2025 Dawn Hooper /s/ DAVID L. GOEBEL Director and Chairman of the Board November 19, 2025 David L. Goebel /s/ GUILLERMO DIAZ, JR. Director November 19, 2025 Guillermo Diaz, Jr. /s/ MADELEINE A. KLEINER Director November 19, 2025 Madeleine A. Kleiner /s/ ENRIQUE RAMIREZ MENA Director November 19, 2025 Enrique Ramirez Mena /s/ MICHAEL W. MURPHY Director November 19, 2025 Michael W. Murphy /s/ JAMES M. MYERS Director November 19, 2025 James M. Myers /s/ VIVIEN M. YEUNG Director November 19, 2025 Vivien M. Yeung 46 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm ( KPMG LLP , San Diego, CA , Auditor Firm ID: 185 ) F- 2 Consolidated Balance Sheets F- 4 Consolidated Statements of Operations F- 5 Consolidated Statements of Comprehensive (Loss) Income F- 6 Consolidated Statements of Cash Flows F- 7 Consolidated Statements of Stockholders’ Deficit F- 8 Notes to Consolidated Financial Statements F- 9 Schedules not filed: All schedules have been omitted as the required information is inapplicable, immaterial, or the information is presented in the consolidated financial statements or related notes. F-1 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Jack in the Box Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Jack in the Box Inc. and subsidiaries (the Company) as of September 28, 2025 and September 29, 2024, the related consolidated statements of operations, comprehensive (loss) income, cash flows, and stockholders’ deficit for each of the fifty-two week periods ended September 28, 2025, September 29, 2024 and October 1, 2023, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of September 28, 2025 and September 29, 2024, and the results of its operations and its cash flows for each of the fifty-two week periods ended September 28, 2025, September 29, 2024 and October 1, 2023, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of September 28, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated November 19, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Valuation of goodwill and trademark related to the Del Taco reporting unit As discussed in Notes 1 and 5 to the consolidated financial statements, goodwill and indefinite-lived intangible assets, which includes the Del Taco trademark, are evaluated for impairment annually during the third quarter of each year, and more frequently if events and circumstances warrant. Goodwill and trademark balances are evaluated for impairment by determining whether the fair value of the Company’s reporting units or the fair value of the trademark, respectively, exceed their carrying values. During the second quarter of 2025, the Company identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of the entire goodwill balance of $25.3 million. The Company also performed a quantitative analysis over the Del Taco trademark and as a result recorded impairment of $177.9 million. The valuation of the Del Taco reporting unit used a blended approach with a discounted cash flow analysis in conjunction with a market approach. The estimated fair value used in the assessment of the Del Taco trademark was determined using the relief from royalty method. F-2 We identified the evaluation of the goodwill impairment analysis for the Del Taco reporting unit and the impairment analysis of the Del Taco trademark as a critical audit matter. Evaluating the key assumptions used to determine the estimated fair values of the reporting unit and trademark involved a high degree of subjective auditor judgment. Specifically, the revenue growth rate assumptions used in estimating the fair value of the Del Taco reporting unit and the brand royalty rate assumption used in estimating the fair value of the Del Taco trademark were challenging to evaluate as changes to these assumptions could have had a significant impact on the assessment of the impairment of goodwill and the trademark, respectively. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the Company’s goodwill and trademark impairment assessment processes, including controls over the revenue growth rate assumptions used in the projected financial information and the brand royalty rate assumption used in the relief from royalty method. We evaluated the reasonableness of the revenue growth rate assumptions for the Del Taco reporting unit by comparing them to industry reports and to historical revenue growth rate trends. In addition, we performed sensitivity analyses over such revenue growth rate assumptions to assess the impact changes to the assumptions could have had on the Company’s fair value estimate. We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the brand royalty rate assumption for the Del Taco trademark by comparing the rate to other restaurant royalty. /s/ KPMG LLP We have served as the Company’s auditor since 1986. San Diego, California November 19, 2025 F-3 JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) September 28, 2025 September 29, 2024 ASSETS Current assets: Cash $ 51,531 $ 24,745 Restricted cash 30,282 29,422 Accounts and other receivables, net 90,311 83,567 Inventories 3,958 3,922 Prepaid expenses 15,826 13,126 Assets held for sale 18,329 16,493 Other current assets 10,135 10,002 Total current assets 220,372 181,277 Property and equipment, at cost: Land 82,008 93,950 Buildings 967,676 963,699 Restaurant and other equipment 225,102 171,436 Construction in progress 39,444 49,445 1,314,230 1,278,530 Less accumulated depreciation and amortization ( 870,622 ) ( 848,491 ) Property and equipment, net 443,608 430,039 Other assets: Operating lease right-of-use assets 1,371,454 1,410,083 Intangible assets, net 9,884 10,515 Trademarks 105,600 283,500 Goodwill 136,026 161,209 Deferred tax assets 41,268 — Other assets, net 265,209 259,006 Total other assets 1,929,441 2,124,313 $ 2,593,421 $ 2,735,629 LIABILITIES AND STOCKHOLDERS’ DEFICIT Current liabilities: Current maturities of long-term debt $ 29,489 $ 35,880 Current operating lease liabilities 159,267 162,017 Accounts payable 71,101 69,494 Accrued liabilities 170,766 166,868 Total current liabilities 430,623 434,259 Long-term liabilities: Long-term debt, net of current maturities 1,674,487 1,699,433 Long-term operating lease liabilities, net of current portion 1,259,577 1,286,415 Deferred tax liabilities — 13,612 Other long-term liabilities 167,005 153,708 Total long-term liabilities 3,101,069 3,153,168 Stockholders’ deficit: Preferred stock $ 0.01 par value, 15,000,000 shares authorized, none issued — — Common stock $ 0.01 par value, 175,000,000 shares authorized, 83,012,784 and 82,825,851 issued, respectively 830 828 Capital in excess of par value 542,177 533,818 Retained earnings 1,769,205 1,866,660 Accumulated other comprehensive loss ( 49,858 ) ( 57,475 ) Treasury stock, at cost, 64,120,270 and 63,996,399 shares, respectively ( 3,200,625 ) ( 3,195,629 ) Total stockholders’ deficit ( 938,271 ) ( 851,798 ) $ 2,593,421 $ 2,735,629 See accompanying notes to consolidated financial statements. F-4 JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Fiscal Year 2025 2024 2023 Revenues: Company restaurant sales $ 627,344 $ 709,035 $ 846,278 Franchise rental revenues 368,643 375,428 364,591 Franchise royalties and other 232,820 238,170 240,515 Franchise contributions for advertising and other services 236,507 248,673 240,922 1,465,314 1,571,306 1,692,306 Operating costs and expenses, net: Food and packaging 171,077 199,271 250,836 Payroll and employee benefits 222,155 238,047 274,598 Occupancy and other 129,188 139,305 163,273 Franchise occupancy expenses 254,387 245,379 229,602 Franchise support and other costs 18,997 17,281 12,328 Franchise advertising and other services expenses 243,580 259,131 253,533 Selling, general, and administrative expenses 149,635 143,233 172,872 Depreciation and amortization 58,314 59,776 62,287 Pre-opening costs 7,335 3,182 1,385 Impairment of goodwill and intangible assets 209,556 162,624 — Other operating expense, net 22,403 24,796 10,837 Gains on the sale of company-operated restaurants ( 3,243 ) ( 3,255 ) ( 17,998 ) 1,483,384 1,488,770 1,413,553 (Loss) earnings from operations ( 18,070 ) 82,536 278,753 Other pension and post-retirement expenses, net 5,814 6,843 6,967 Interest expense, net 78,941 80,016 82,446 (Loss) earnings before income taxes ( 102,825 ) ( 4,323 ) 189,340 Income tax (benefit) expense ( 22,106 ) 32,372 58,514 Net (loss) earnings $ ( 80,719 ) $ ( 36,695 ) $ 130,826 (Loss) earnings per share: Basic $ ( 4.24 ) $ ( 1.87 ) $ 6.35 Diluted $ ( 4.24 ) $ ( 1.87 ) $ 6.30 Cash dividends declared per common share $ 0.88 $ 1.76 $ 1.76 See accompanying notes to consolidated financial statements. F-5 JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (In thousands) Fiscal Year 2025 2024 2023 Net (loss) earnings $ ( 80,719 ) $ ( 36,695 ) $ 130,826 Other comprehensive income: Actuarial gains (losses) arising during the period 7,705 ( 9,856 ) 823 Amortization of actuarial losses and prior service cost reclassified to earnings 2,628 2,135 2,154 10,333 ( 7,721 ) 2,977 Tax effect ( 2,716 ) 2,036 ( 785 ) Other comprehensive income (loss), net of taxes 7,617 ( 5,685 ) 2,192 Comprehensive (loss) income $ ( 73,102 ) $ ( 42,380 ) $ 133,018 See accompanying notes to consolidated financial statements. F-6 JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Fiscal Year 2025 2024 2023 Cash flows from operating activities: Net (loss) earnings $ ( 80,719 ) $ ( 36,695 ) $ 130,826 Adjustments to reconcile net (loss) earnings to net cash provided by operating activities: Depreciation and amortization 58,314 59,776 62,287 Amortization of franchise tenant improvement allowances and incentives 6,699 4,998 4,647 Deferred finance cost amortization 4,759 4,830 5,040 Excess tax deficiency from share-based compensation arrangements 1,568 51 71 Deferred income taxes ( 57,705 ) ( 10,812 ) ( 11,989 ) Share-based compensation expense 8,238 13,471 11,205 Pension and postretirement expense 5,814 6,843 6,967 Gains on cash surrender value of company-owned life insurance ( 9,122 ) ( 16,480 ) ( 7,346 ) Gains on the sale of company-operated restaurants ( 3,243 ) ( 3,255 ) ( 17,998 ) Gains on acquisition of restaurants ( 6 ) ( 2,702 ) — Losses (gains) on the disposition of property and equipment, net 2,161 185 ( 8,171 ) Impairment charges and other 213,997 171,415 6,217 Changes in assets and liabilities, excluding acquisitions and dispositions: Accounts and other receivables ( 4,188 ) 19,905 ( 4,048 ) Inventories ( 37 ) ( 25 ) 1,367 Prepaid expenses and other current assets ( 6,648 ) ( 297 ) ( 1,422 ) Operating lease right-of-use assets and lease liabilities 2,750 22,705 2,364 Accounts payable ( 1,784 ) ( 15,404 ) ( 1,692 ) Accrued liabilities 10,448 ( 135,159 ) 47,459 Pension and postretirement contributions ( 6,395 ) ( 5,937 ) ( 6,241 ) Franchise tenant improvement allowance and incentive disbursements ( 7,683 ) ( 2,486 ) ( 3,265 ) Other 25,140 ( 6,111 ) ( 1,272 ) Cash flows provided by operating activities 162,358 68,816 215,006 Cash flows from investing activities: Purchases of property and equipment ( 88,223 ) ( 91,177 ) ( 59,994 ) Purchases of assets intended for sale or leaseback ( 8,827 ) ( 24,297 ) ( 14,960 ) Acquisition of franchise-operated restaurants ( 7,193 ) — — Proceeds from the sale and leaseback of assets — 1,728 3,673 Proceeds from the sale of company-operated restaurants 6,384 19,400 85,221 Proceeds from the sale of property and equipment 19,870 24,975 25,214 Other 3,303 — 3,065 Cash flows (used in) provided by investing activities ( 74,686 ) ( 69,371 ) 42,219 Cash flows from financing activities: Borrowings on revolving credit facilities — 6,000 — Repayments of borrowings on revolving credit facilities ( 6,000 ) — ( 50,000 ) Principal repayments on debt ( 29,861 ) ( 29,892 ) ( 30,109 ) Dividends paid on common stock ( 16,614 ) ( 33,972 ) ( 35,890 ) Proceeds from issuance of common stock 2 2 263 Repurchases of common stock ( 4,996 ) ( 70,000 ) ( 90,029 ) Payroll tax payments for equity award issuances ( 2,557 ) ( 3,323 ) ( 1,593 ) Cash flows used in financing activities ( 60,026 ) ( 131,185 ) ( 207,358 ) Net increase (decrease) in cash and restricted cash 27,646 ( 131,740 ) 49,867 Cash and restricted cash at beginning of year 54,167 185,907 136,040 Cash and restricted cash at end of year $ 81,813 $ 54,167 $ 185,907 See accompanying notes to consolidated financial statements. F-7 JACK IN THE BOX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT (Dollars in thousands) Number of Shares Amount Capital in Excess of Par Value Retained Earnings Accumulated Other Comprehensive Loss Treasury Stock Total Balance at October 2, 2022 82,580,599 $ 826 $ 508,323 $ 1,842,947 $ ( 53,982 ) $ ( 3,034,306 ) $ ( 736,192 ) Shares issued under stock plans, including tax benefit 65,215 — 263 — — — 263 Share-based compensation — — 11,205 — — — 11,205 Dividends declared — — 285 ( 36,175 ) — — ( 35,890 ) Purchases of treasury stock — — — — — ( 90,731 ) ( 90,731 ) Net earnings — — — 130,826 — — 130,826 Other comprehensive income — — — — 2,192 — 2,192 Balance at October 1, 2023 82,645,814 826 520,076 1,937,598 ( 51,790 ) ( 3,125,037 ) ( 718,327 ) Shares issued under stock plans, including tax benefit 180,037 2 — — — — 2 Share-based compensation — — 13,471 — — — 13,471 Dividends declared — — 271 ( 34,243 ) — — ( 33,972 ) Purchases of treasury stock — — — — — ( 70,592 ) ( 70,592 ) Net loss — — — ( 36,695 ) — — ( 36,695 ) Other comprehensive loss — — — — ( 5,685 ) — ( 5,685 ) Balance at September 29, 2024 82,825,851 828 533,818 1,866,660 ( 57,475 ) ( 3,195,629 ) ( 851,798 ) Shares issued under stock plans, including tax benefit 186,933 2 — — — — 2 Share-based compensation — — 8,238 — — — 8,238 Dividends declared — — 121 ( 16,736 ) — — ( 16,615 ) Purchases of treasury stock — — — — — ( 4,996 ) ( 4,996 ) Net loss — — — ( 80,719 ) — — ( 80,719 ) Other comprehensive income — — — — 7,617 — 7,617 Balance at September 28, 2025 83,012,784 $ 830 $ 542,177 $ 1,769,205 $ ( 49,858 ) $ ( 3,200,625 ) $ ( 938,271 ) See accompanying notes to consolidated financial statements. F-8 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box ® and Del Taco ® restaurant brands. On March 8, 2022, the Company acquired Del Taco Restaurants, Inc. (“Del Taco”) for cash according to the terms and conditions of the Agreement and Plan of Merger, dated as of December 5, 2021. Del Taco is a nationwide operator and franchisor of restaurants featuring fresh and fast Mexican and American inspired cuisines. As of September 28, 2025, there were 150 company-operated and 1,986 franchise-operated Jack in the Box restaurants and 132 company-operated and 444 franchise-operated Del Taco restaurants. References to the Company throughout these notes to the consolidated financial statements are made using the first-person notations of “we,” “us,” and “our.” Basis of presentation — The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). Reclassification — Certain amounts in the prior periods’ financial statements and related footnote disclosures have been reclassified to conform to the current presentation with no impact on previously reported net income or stockholders’ equity. Fiscal year — The Company’s fiscal year is the 52 or 53 weeks ending the Sunday closest to September 30. In fiscal 2023, Del Taco operated on a fiscal year ending the Tuesday closest to September 30. Beginning fiscal 2024, Del Taco’s fiscal year shifted to align with Jack in the Box. As a result, Del Taco’s fiscal 2024 results include two fewer days. Comparisons throughout these notes to the consolidated financial statements refer to the 52-week periods ended September 28, 2025, September 29, 2024, and October 1, 2023 for fiscal years 2025, 2024, and 2023. Principles of consolidation — The accompanying consolidated financial statements include the accounts of Jack in the Box Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. Use of estimates — In preparing the consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses, and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates. Restricted cash — In accordance with the terms of our securitized financing facility, certain cash balances are required to be held in trust. Such restricted cash primarily represents cash collections and cash reserves held by the trustee to be used for payments of quarterly interest and commitment fees required for the Class A-2 Notes and Variable Funding Notes. The Company also had restricted cash relating to an agreement for a financing structure with a technology partner to allow them to limit their exposure to risk, while they service the franchise-owned locations. As of September 28, 2025 and September 29, 2024, restricted cash balances were $ 30.3 million and $ 29.4 million, respectively. Accounts and other receivables, net — Our accounts and other receivables, net is primarily comprised of receivables from franchisees, tenants, credit card processors, and insurance receivables. Franchisee receivables primarily include rents, property taxes, royalties, marketing, sourcing and technology support fees associated with lease and franchise agreements, and notes from certain of our franchisees. Tenant receivables relate to subleased properties where we are on the master lease agreement. We accrue interest on notes receivable based on the contractual terms. The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased. The Company’s allowance for doubtful accounts has not historically been material. The following table summarizes the activity in our allowance for doubtful accounts ( in thousands ): F-9 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2025 2024 Balance as of beginning of period $ ( 4,512 ) $ ( 4,146 ) Provision for expected credit losses, net ( 3,292 ) ( 372 ) Write-offs charged against the allowance 1,234 6 Balance as of end of period $ ( 6,570 ) $ ( 4,512 ) Inventories — Our inventories consist principally of food, packaging, and supplies, and are valued at the lower of cost or market on a first-in, first-out basis. Internal-use Software Costs — The Company capitalizes costs incurred to implement software solely for its internal use, including (i) hosted applications used to deliver the Company's support services, and (ii) certain implementation costs incurred in a hosting arrangement that is a service contract when the preliminary project stage is complete, management with the relevant authority authorizes and commits to the funding of the software project, and it is probable the project will be completed and used to perform the intended function. Software implementation costs are capitalized to either other current assets or other long-term assets on the Company's consolidated balance sheet and amortized over the estimated useful life of the developed software. Hosted software implementation costs capitalized were $ 11.0 million and $ 11.1 million as of the end of fiscal year 2025 and 2024, respectively. Related amortization expense for software implementation costs was $ 2.4 million, $ 4.5 million and $ 5.0 million during fiscal years 2025, 2024 and 2023, respectively. Assets held for sale — Our assets held for sale typically includes property and restaurants we plan to sell within the next year, including amounts relating to i) company-owned restaurants to be refranchised, ii) operating restaurant properties which we intend to sell to franchisees and/or sell and leaseback with a third party, and iii) closed restaurant properties which we are marketing for sale. If the determination is made that we no longer expect to sell an asset within the next year, the asset is reclassified out of assets held for sale and back into property and equipment, net. Long-lived assets that meet the held for sale criteria are reported at the lower of their carrying value or fair value, less estimated costs to sell. Property and equipment, net — Expenditures for new facilities and equipment, and those that substantially increase the useful lives of the property, are capitalized. Facilities leased under finance leases are stated at the present value of minimum lease payments at the beginning of the lease term, not to exceed fair value. Maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts, and gains or losses on the dispositions are included in “Other operating expense, net” in the accompanying consolidated statements of earnings. Buildings, equipment, and leasehold improvements are generally depreciated using the straight-line method based on the estimated useful lives of the assets, over the initial lease term for certain assets acquired in conjunction with the lease commencement for leased properties, or the remaining lease term for certain assets acquired after the commencement of the lease for leased properties. In certain situations, one or more option periods may be used in determining the depreciable life of assets related to leased properties if we deem that an economic penalty would be incurred otherwise. In either circumstance, our policy requires lease term consistency when calculating the depreciation period, in classifying the lease and in computing straight-line rent expense. Building, leasehold improvement assets and equipment are assigned lives that range from 1 to 35 years. Depreciation expense related to property and equipment was $ 57.8 million, $ 59.2 million, and $ 61.7 million in fiscal year 2025, 2024, and 2023, respectively. Impairment of long-lived assets — We evaluate long-lived assets, such as property and equipment and operating lease right-of-use assets, for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Long-lived assets are grouped for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. The impairment test for long-lived assets requires us to assess the recoverability of long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from our use and eventual disposition of the assets. If the carrying amount of a long-lived asset group exceeds the sum of related undiscounted future cash flows, we recognize an impairment loss by the amount that the carrying value of the assets exceeds fair value. Refer to Note 9, Other Operating Expense, Net , for additional information. F-10 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Goodwill and trademarks — Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired, if any. We generally record goodwill in connection with the acquisition of restaurants from franchisees or the acquisition of another business. Likewise, upon the sale of restaurants to franchisees, goodwill is decremented. The amount of goodwill written-off is determined as the fair value of the business disposed of as a percentage of the fair value of the reporting unit retained. If the business disposed of was never fully integrated into the reporting unit after its acquisition, and thus the benefits of the acquired goodwill were never realized, the current carrying amount of the acquired goodwill is written off. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our two restaurant brands, Jack in the Box and Del Taco, are both operating segments and reporting units. Goodwill is evaluated for impairment annually during the third quarter of each year, or more frequently if indicators of impairment are present. We first assess qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit or indefinite-lived asset is less than its carrying amount. If the qualitative factors indicate that it is more likely than not that the fair value is less than the carrying amount, we perform a single-step impairment test. To perform our impairment analysis, we estimate the fair value of the reporting unit and compare it to the carrying value. If the carrying value exceeds the fair value, an impairment loss is recognized equal to the excess. We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets during the third quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset's fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is estimated by discounting the expected future after-tax cash flows associated with the intangible asset. During the second quarter of 2025, we performed quantitative tests over the Del Taco reporting unit noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill. Refer also to Note 5, Goodwill and Intangible Assets, in the notes to the consolidated financial statements for additional information. Intangible assets, net — Intangible assets primarily include franchise contracts, reacquired franchise rights and sublease assets. Franchise contracts, which represent the fair value of franchise agreements based on the projected royalty revenue stream as of the acquisition date, are amortized on a straight-line basis to “Depreciation and amortization” in the consolidated statements of earnings over the remaining term of the franchise agreements. Reacquired franchise rights are recorded in connection with our acquisition of franchised restaurants and are amortized on a straight-line basis to “Depreciation and amortization” in the consolidated statements of earnings over the term of the former franchise agreement. Sublease assets, which represent subleases with stated rent above comparable market rents as of the acquisition date, are amortized on a straight-line basis to “Franchise rental revenues” in the consolidated statements of earnings over the term of the related sublease. Company-owned life insurance — We have purchased company-owned life insurance (“COLI”) policies to support our non-qualified benefit plans. The cash surrender values of these policies were $ 135.5 million and $ 129.7 million as of September 28, 2025 and September 29, 2024, respectively, and are included in “Other assets, net”, in the accompanying consolidated balance sheets. Changes in cash surrender values are included in “Selling, general and administrative expenses” in the accompanying consolidated statements of earnings. These policies reside in an umbrella trust for use only to pay plan benefits to participants or to pay creditors if the Company becomes insolvent. Leases — We evaluate the contracts entered into by the Company to determine whether such contracts contain leases. A contract contains a lease if the contract conveys the right to control the use of identified property, plant, and equipment for a period of time in exchange for consideration. At commencement, contracts containing a lease are further evaluated for classification as an operating or finance lease where the Company is a lessee, or as an operating, sales-type, or direct financing lease where the Company is a lessor, based on their terms. The lease term and incremental borrowing rate for each lease requires judgment by management and can impact the classification of our leases as well as the value of our lease assets and liabilities. When determining the lease term, we consider option periods available, and include option periods in the measurement of the lease right-of-use (“ROU”) asset and lease liability where the exercise is reasonably certain to occur. As our leases do not provide an implicit discount rate, we have determined it is appropriate to use our estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, in calculating our lease liabilities. F-11 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Revenue recognition — “Company restaurant sales” include revenue recognized upon delivery of food and beverages to the customer at company-operated restaurants, which is when our obligation to perform is satisfied. Company restaurant sales exclude taxes collected from the Company’s customers. Gift cards, upon customer purchase, are recorded as deferred income and are recognized in revenue as they are redeemed. The Company operates loyalty programs in which members earn points primarily for food purchases. Points can then be redeemed for special reward offers. The Company allocates the consideration received on loyalty orders between the food purchased and the loyalty points earned, taking into consideration the expected redemption rate of loyalty points. The consideration allocated to the food is recognized as revenue at the time of sale. The consideration allocated to the loyalty points earned is deferred until the loyalty points are redeemed or expire. “Franchise rental revenues” received from franchised restaurants based on fixed rental payments are recognized as revenue over the term of the lease. Rental revenue from properties owned and leased by the Company and leased or subleased to franchisees is recognized on a straight-line basis over the respective term of the lease. Certain franchise rents, which are contingent upon sales levels, are recognized in the period in which the contingency is met. “Franchise royalties and other” primarily includes royalties and franchise fees received from our franchisees. Royalties are based upon a percentage of sales of the franchised restaurant and are recognized as earned. Franchise royalties are billed on a monthly basis. Franchise fees when a new restaurant opens or at the start of a new franchise term are recorded as deferred revenue when received and recognized as revenue over the term of the franchise agreement. “Franchise contributions for advertising and other services” includes franchisee contributions to our marketing funds billed on a monthly basis and sourcing and technology fees, as required under the franchise agreements. Contributions to our marketing funds are based on a percentage of sales and recognized as earned. Sourcing and technology services are recognized when the goods or services are transferred to the franchisee. Gift cards — We sell gift cards to our customers in our restaurants and through selected third parties. The gift cards sold to our customers have no stated expiration dates and are subject to actual or potential escheatment rights in several of the jurisdictions in which we operate. We recognize income from gift cards when redeemed by the customer. Deferred gift card income totaled $ 2.8 million and $ 2.7 million as of September 28, 2025 and September 29, 2024, respectively, and are included in “Accrued liabilities” in the accompanying consolidated balance sheets. While we will continue to honor all gift cards presented for payment, we may determine the likelihood of redemption to be remote for certain card balances due to, among other things, long periods of inactivity. In these circumstances, to the extent we determine there is no requirement for remitting balances to government agencies under unclaimed property laws, card balances may be recognized as income in our consolidated statements of operations. Amounts recognized on unredeemed gift card balances were $ 0.6 million, $ 0.8 million, and $ 1.6 million in fiscal 2025, 2024, and 2023, respectively. Pre-opening costs — Pre-opening costs associated with the opening of a new restaurant or the remodeling of an existing restaurant consist primarily of property rent and employee training costs. Pre-opening costs associated with the opening of a restaurant that was closed upon acquisition consist of labor costs, maintenance and repair costs, and property rent. Self-insurance — We are self-insured for a portion of our workers’ compensation, general liability, employee medical and dental, and automotive claims. We utilize a paid-loss plan for our workers’ compensation, general liability, and automotive programs, which have predetermined loss limits per occurrence and in the aggregate. We establish our undiscounted insurance liability and reserves using independent actuarial estimates of expected losses based on a statistical analysis of historical claims data. As of September 28, 2025 and September 29, 2024, our estimated self-insurance liability was $ 28.1 million and $ 27.9 million, respectively, and is included in “Accrued liabilities” in the accompanying consolidated balance sheets. Advertising costs — We administer marketing funds at each of our restaurant brands that include contractual contributions. In 2025, 2024 and 2023, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0 % of sales. In 2025, 2024, and 2023, marketing fund contributions from Del Taco franchise and company-operated restaurants were approximately 4.0 % of sales. F-12 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Production costs of commercials, programming, and other marketing activities are charged to the marketing funds when the advertising is first used for its intended purpose, and the costs of advertising are charged to operations as incurred. When contributions to the marketing fund exceed the related advertising expenses, advertising costs are accrued up to the amount of revenues on an annual basis since we are contractually obligated to spend these funds. When advertising costs are greater than the contributions to the marketing fund resulting in a deficit, the excess costs are covered by marketing fund contributions in the following year. As of September 28, 2025, and September 29, 2024, the Jack in the Box marketing fund ended the year with a $ 0.2 million deficit, and an $ 0.8 million surplus, respectively. As of September 28, 2025, and September 29, 2024, the Del Taco marketing fund ended the year with a $ 0.3 million surplus, and a $ 0.8 million deficit, respectively. In 2025, 2024, and 2023, incremental contributions to the marketing fund were $ 6.3 million, $ 0.5 million, and $ 0.2 million. Total contributions made by the Company, including incremental contributions and marketing fund deficits, if any, are included in “Selling, general, and administrative expenses” in the accompanying consolidated statements of earnings. In fiscal 2025, 2024, and 2023 consolidated advertising costs were $ 39.3 million, $ 35.0 million, and $ 38.9 million, respectively. Share-based compensation — We account for our share-based compensation under the Financial Accounting Standards Board (“FASB”) authoritative guidance on stock compensation , which generally requires, among other things, that all employee share-based compensation be measured using a fair value method and that the resulting compensation cost be recognized in the financial statements. Compensation expense for our share-based compensation awards is generally recognized on a straight-line basis over the shorter of the vesting period or the period from the date of grant to the date the employee becomes eligible to retire. Refer to Note 13, Share-Based Employee Compensation , for additional information. Income taxes — Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as tax loss and credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize interest and, when applicable, penalties related to unrecognized tax benefits as a component of our income tax provision. Authoritative guidance issued by the FASB prescribes a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. The minimum threshold is defined as a tax position that is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Refer to Note 11, Income Taxes , for additional information. Contingencies — We recognize liabilities for contingencies when we have an exposure that indicates it is probable that an asset has been impaired or that a liability has been incurred and the amount of impairment or loss can be reasonably estimated. Our ultimate legal and financial liability with respect to such matters cannot be estimated with certainty and requires the use of estimates. When the reasonable estimate is a range, the recorded loss will be the best estimate within the range. We record legal settlement costs when those costs are probable and reasonably estimable. Refer to Note 16, Commitments and Contingencies , for additional information. Business combinations — We account for acquisitions using the acquisition method of accounting. Accordingly, assets acquired and liabilities assumed are recorded at their estimated fair values at the acquisition date. The excess of purchase price over fair value of net assets acquired, including the amount assigned to identifiable intangible assets, is recorded as goodwill. Recent accounting pronouncements — In November 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure , which updates reportable segment disclosure requirements. The ASU requires enhanced disclosures about significant segment expenses and information used to assess segment performance and is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted. The Company adopted this pronouncement in Form 10-K for fiscal year ended September 28, 2025. Refer to Note 10, Segment Reporting , for additional information. In December 2023, the FASB issued ASU 2023-09, I ncome Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company does not expect this pronouncement to have a significant impact. F-13 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Additionally, companies will need to disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The FASB further clarified the effective date in January 2025 with the issuance of ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220 - 40): Clarifying the Effective Date . This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 should be applied prospectively to financial statements issued for reporting periods beginning after the effective date but entities may elect to apply the ASU retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets . This amendment introduces a practical expedient for the application of the current expected credit loss (“CECL”) model to current accounts receivable and contract assets. The amendment is effective for annual and interim reporting periods beginning after December 15, 2025, on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software , which makes updates to increase the operability of the recognition guidance considering different methods of software development. The guidance is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. 2. REVENUE Nature of products and services — We derive revenue from retail sales at Jack in the Box and Del Taco company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants. Our franchise arrangements generally provide for an initial franchise fee per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees, as well as sourcing fees for Jack in the Box franchise agreements. Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the fiscal year ended September 28, 2025 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 416,716 $ 210,628 $ 627,344 Franchise rental revenues 332,735 35,908 368,643 Franchise royalties 189,646 32,372 222,018 Marketing fees 188,992 27,605 216,597 Technology and sourcing fees 17,208 2,702 19,910 Franchise fees and other services 8,670 2,132 10,802 Total revenue $ 1,153,967 $ 311,347 $ 1,465,314 F-14 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table disaggregates revenue by segment and primary source for the fiscal year ended September 29, 2024 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 427,057 $ 281,978 $ 709,035 Franchise rental revenues 347,227 28,201 375,428 Franchise royalties 198,377 31,714 230,091 Marketing fees 197,900 26,258 224,158 Technology and sourcing fees 19,857 4,658 24,515 Franchise fees and other services 7,002 1,077 8,079 Total revenue $ 1,197,420 $ 373,886 $ 1,571,306 The following table disaggregates revenue by segment and primary source for the fiscal year ended October 1, 2023 (in thousands) : Jack in the Box Del Taco Total Company restaurant sales $ 413,748 $ 432,530 $ 846,278 Franchise rental revenues 351,283 13,308 364,591 Franchise royalties 207,064 25,669 232,733 Marketing fees 199,917 21,025 220,942 Technology and sourcing fees 16,073 3,907 19,980 Franchise fees and other services 7,226 556 7,782 Total revenue $ 1,195,311 $ 496,995 $ 1,692,306 In October 2022, a Jack in the Box franchise operator paid the Company $ 7.3 million in order to sell his restaurants to a new franchisee at the current standard royalty rate, which is lower than the royalty rate in the existing franchise agreements. The payment represented the difference between the existing royalty rate and the new royalty rate based on projected future sales for the remaining term of the existing agreements. The payment was non-refundable and not subject to any adjustments based on actual future sales. The Company determined the transaction represented the termination of the existing agreement rather than the transfer of an agreement between franchisees. As such, the $ 7.3 million was recognized in franchise royalty revenue during the first quarter of 2023. Contract liabilities — Our contract liabilities consist of deferred revenue resulting from initial fees received from franchisees for new restaurant openings or new franchise terms, which are generally recognized over the franchise term. We classify these contract liabilities within “Accrued liabilities” and “Other long-term liabilities” in our consolidated balance sheets. A summary of significant changes in our contract liabilities is presented below (in thousands) : 2025 2024 Deferred franchise and development fees at beginning of period $ 51,990 $ 50,474 Revenue recognized during the period ( 6,285 ) ( 5,854 ) Additions during the period 2,802 7,370 Deferred franchise and development fees at end of period $ 48,507 $ 51,990 As of September 28, 2025, approximately $ 8.6 million of development fees related to unopened stores are included in deferred revenue. Timing of revenue recognition is dependent upon the timing of store openings and are recognized over the franchise term at the date of opening. F-15 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands) : 2026 $ 4,960 2027 4,652 2028 4,073 2029 3,481 2030 3,011 Thereafter 19,763 $ 39,940 We have applied the optional exemption, as provided for under ASC Topic 606, Revenue from Contracts with Customers , which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty. 3. ASSETS HELD FOR SALE Assets held for sale — Assets classified as held for sale consisted of the following at each fiscal year-end ( in thousands ): 2025 2024 Jack in the Box restaurant properties (1) $ 12,743 $ 14,567 Other property and equipment (2) 5,586 199 Del Taco restaurants to be refranchised: Property and equipment — 1,318 Goodwill — 409 Assets held for sale $ 18,329 $ 16,493 ________________________ (1) Consists of properties that are currently leased to franchisees which we intend to sell the underlying real estate directly to the franchisee and/or sell and leaseback with a third party. (2) Consists primarily of owned properties of closed restaurants which we are actively marketing for sale. 4. SUMMARY OF REFRANCHISING AND FRANCHISE ACQUISITION Refranchising — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year ( dollars in thousands ): 2025 2024 2023 Restaurants sold to Jack in the Box franchisees 1 — 5 Restaurants sold to Del Taco franchisees 13 47 111 Proceeds from the sale of company-operated restaurants (1) 6,384 $ 19,400 $ 85,221 Broker commissions — — ( 1,614 ) Net assets sold (primarily property and equipment) ( 1,883 ) ( 5,310 ) ( 17,101 ) Goodwill related to the sale of company-operated restaurants ( 461 ) ( 6,835 ) ( 35,544 ) Franchise fees ( 364 ) ( 1,266 ) ( 3,086 ) Sublease liabilities, net — ( 140 ) ( 8,559 ) Lease termination ( 217 ) ( 225 ) ( 393 ) Other (2) ( 216 ) ( 2,369 ) ( 926 ) Gains on the sale of company-operated restaurants $ 3,243 $ 3,255 $ 17,998 ________________________ (1) Amounts in 2025, 2024, and 2023 include additional proceeds of $ 0.7 million, $ 1.5 million, and $ 0.9 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years. (2) Amount in 2024 is primarily comprised of a $ 2.2 million loss on sale of assets related to a Del Taco refranchising transaction that closed in the second quarter of 2024. F-16 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Franchise Acquisitions — In 2025, the Company acquired 18 Del Taco franchise restaurants for $ 7.2 million and recognized related goodwill of $ 6.3 million. In 2024, the Company acquired 10 Del Taco franchise restaurants as part of three separate transactions for total consideration of $ 86 thousand. Consideration was comprised of franchise receivables owed to the Company as of the acquisition date. There were no such acquisitions in 2023. We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). The following table provides detail of the combined acquisitions in the following periods ( dollars in thousands ): 2025 2024 Restaurants acquired from Del Taco franchisees 18 10 Purchase price 7,193 86 Closing and acquisition costs — 31 Property and equipment ( 5,010 ) ( 3,945 ) Intangible assets ( 165 ) ( 167 ) Operating lease right-of-use assets ( 9,299 ) ( 3,479 ) Operating lease liability 13,607 4,772 Goodwill recorded on franchise acquisition $ 6,326 $ — Gain on the acquisition of franchise-operated restaurants (1) $ ( 6 ) $ ( 2,702 ) ________________________ (1) The gain on acquisition in 2025 relates to the Del Taco acquisition in 2024. 5. GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill during fiscal 2025 and 2024 were as follows ( in thousands ): Jack in the Box Del Taco Total Goodwill $ 136,027 $ 193,959 $ 329,986 Accumulated impairment losses — — — Balance at October 1, 2023 136,027 193,959 329,986 Impairment of goodwill — ( 162,624 ) ( 162,624 ) Sale of Del Taco company-operated restaurants to franchisees — ( 5,544 ) ( 5,544 ) Reclassified to assets held for sale ( 200 ) ( 409 ) ( 609 ) Goodwill 135,827 188,006 323,833 Accumulated impairment losses — ( 162,624 ) ( 162,624 ) Balance at September 29, 2024 135,827 25,382 161,209 Acquisition of Del Taco company-operated restaurants — 6,326 6,326 Impairment of goodwill — ( 31,656 ) ( 31,656 ) Reclassified from (to) assets held for sale 199 ( 52 ) 147 Goodwill 136,026 194,280 330,306 Accumulated impairment losses — ( 194,280 ) ( 194,280 ) Balance at September 28, 2025 $ 136,026 $ — $ 136,026 F-17 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) During the third quarter of the prior year, the Company identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. The triggering events related to i) a recent negative trend in Del Taco same store sales, ii) lower margins due in part to lower sales and higher wages required in California effective April 1, 2024 under AB 1228 and iii) unfavorable changes in the economic environment specifically impacting our industry, including inflation and interest rates. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $ 162.6 million. In performing a quantitative test for impairment of goodwill for Del Taco, we use the income approach method of valuation that includes the discounted cash flow method and the market approach that includes the guideline public company method to determine the fair value of the reporting unit. Significant assumptions made by management to estimate fair value under the discounted cash flow method include future cash flow assumptions. The Company also performed a quantitative analysis over its indefinite-lived intangible trademark asset, as well as over its definite-lived intangible assets to determine whether any impairment would need to be recognized, noting none at that time. During the second quarter of 2025, the Company identified additional triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be further impaired, including i) continued negative trend in Del Taco same store sales, ii) unfavorable changes in the economic environment specifically impacting our industry, including inflation and interest rates, iii) the potential for a divestment of Del Taco, and iv) a sustained lower share price. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $ 25.3 million for the second quarter of 2025. The valuation used a blended approach with a discounted cash flow analysis in conjunction with a market approach. Assumptions and estimates used in determining fair value include revenue growth rates, operating costs, new store openings, capital expenditures, a discount rate that approximates the Company’s weighted average cost of capital and a selection of comparable companies. The Company determined that there was no such triggering event for the Jack in the Box reporting unit. As a result of the franchisee acquisition during the third quarter of 2025, the Company recognized additional goodwill of $ 6.3 million. This additional goodwill was fully impaired based on the results of the quantitative impairment analysis performed in the second quarter of 2025. The goodwill for the Del Taco reporting unit is fully impaired as of the end of 2025. In connection with the goodwill analysis during the second quarter of 2025, and as a result of the triggering events noted above, the Company also performed a quantitative analysis over its indefinite-lived intangible trademark asset and as a result, the Company recorded impairment of $ 177.9 million on the Del Taco trademark asset as noted below. The Company uses a ‘relief from royalty’ method to value its trademark asset, which includes inputs such as systemwide sales, brand royalty rate, brand-related expenses, tax rate, discount rate and a long-term growth rate. During the third and fourth quarters of 2025, the Company performed a qualitative analysis over its indefinite-lived intangible trademark asset, noting no further impairment was deemed necessary. The changes in the carrying amount of the Del Taco indefinite-lived trademark during the year-to-date period ended September 28, 2025 was as follows ( in thousands ): Balance at September 29, 2024 $ 283,500 Impairment of trademark ( 177,900 ) Balance at September 28, 2025 $ 105,600 The net carrying amounts of intangible assets are as follows ( in thousands ): September 28, 2025 September 29, 2024 Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Definite-lived intangible assets: Sublease assets $ 2,671 $ ( 861 ) $ 1,810 $ 2,671 $ ( 620 ) $ 2,051 Franchise contracts 9,700 ( 1,928 ) 7,772 9,700 ( 1,389 ) 8,311 Reacquired franchise rights 629 ( 327 ) 302 464 ( 311 ) 153 $ 13,000 $ ( 3,116 ) $ 9,884 $ 12,835 $ ( 2,320 ) $ 10,515 F-18 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table summarizes, as of September 28, 2025, the estimated amortization expense for each of the next five fiscal years ( in thousands ): 2026 $ 798 2027 812 2028 761 2029 699 2030 and thereafter 6,814 Total $ 9,884 6. FAIR VALUE MEASUREMENTS Financial assets and liabilities — The following table presents the financial assets and liabilities measured at fair value on a recurring basis ( in thousands ): Total Quoted Prices in Active Markets for Identical Assets (2) (Level 1) Significant Other Observable Inputs (2) (Level 2) Significant Unobservable Inputs (2) (Level 3) Fair value measurements as of September 28, 2025: Non-qualified deferred compensation plan (1) $ 18,326 $ 18,326 $ — $ — Total liabilities at fair value $ 18,326 $ 18,326 $ — $ — Fair value measurements as of September 29, 2024: Non-qualified deferred compensation plan (1) $ 18,481 $ 18,481 $ — $ — Total liabilities at fair value $ 18,481 $ 18,481 $ — $ — ________________________ (1) We maintain an unfunded defined contribution plan for key executives and other members of management. The fair value of this obligation is based on the closing market prices of the participants’ elected investments. The obligation is included in “Accrued liabilities” and “Other long-term liabilities” on our consolidated balance sheets. (2) We did not have any transfers in or out of Level 1, 2, or 3. The following table presents the carrying value and estimated fair value of our Class A-2 Notes as of September 28, 2025 and September 29, 2024 ( in thousands ): September 28, 2025 September 29, 2024 Carrying Amount Fair Value Carrying Amount Fair Value Series 2019 Class A-2 Notes $ 692,375 $ 675,500 $ 699,625 $ 684,875 Series 2022 Class A-2 Notes $ 1,023,000 $ 952,720 $ 1,045,000 $ 975,507 The fair value of the Class A-2 Notes was estimated using Level 2 inputs based on quoted market prices in markets that are not considered active markets. As of September 28, 2025, we had no amounts outstanding under our Variable Funding Notes. Non-financial assets and liabilities — Our non-financial instruments, which primarily consist of property and equipment, operating lease right-of-use assets, goodwill, and intangible assets, are reported at carrying value and are not required to be measured at fair value on a recurring basis. However, on an annual basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value. In connection with our impairment reviews performed during 2025 and 2024, the Company impaired certain assets. For further information, see Note 4, Summary of Refranchisings and Assets Held For Sale , Note 5, Goodwill and Intangible Assets, Net , and Note 9, Other Operating Expenses, Net in the notes to the consolidated financial statements. F-19 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 7. INDEBTEDNESS The detail of our long-term debt at the end of each fiscal year is as follows ( in thousands ): September 28, 2025 September 29, 2024 Series 2019-1 4.476 % Fixed Rate Class A-2-II Notes $ 262,625 $ 265,375 Series 2019-1 4.970 % Fixed Rate Class A-2-III Notes 429,750 434,250 Series 2022-1 3.445 % Fixed Rate Class A-2-I Notes 511,500 522,500 Series 2022-1 4.136 % Fixed Rate Class A-2-II Notes 511,500 522,500 Series 2022-1 Variable Funding Notes, variable interest rate of 6.788 % at September 28, 2025 — 6,000 Finance lease obligations and other debt 491 913 Total debt 1,715,866 1,751,538 Less current maturities of long-term debt ( 29,489 ) ( 35,880 ) Less unamortized debt issuance costs ( 11,890 ) ( 16,225 ) Long-term debt $ 1,674,487 $ 1,699,433 Securitization refinancing transaction — Jack in the Box Funding, LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly owned indirect subsidiary of the Company is the master issuer of outstanding senior secured notes under a securitized financing facility that was entered into in July 2019. In February 2022, the Master Issuer completed a refinancing transaction and issued $ 550.0 million of its Series 2022-1 3.445 % Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) and $ 550.0 million of its Series 2022-1 4.136 % Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II” and, together with the Class A-2-I Notes, the “2022 Notes”). Interest payments on the 2022 Notes are payable on a quarterly basis. The Anticipated Repayment Dates of the Class A-2-I Notes and the Class A-2-II Notes are February 2027 and February 2032, respectively, and the Anticipated Repayment Dates of the 2019-1 Class A-2-II Notes and the Class A-2-III Notes are August 2026 and August 2029, respectively. The legal final maturity date of the 2019 Notes and 2022 Notes is August 2049 and February 2052, respectively, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the Notes will be repaid by the Anticipated Repayment Dates. If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture. The Company also entered into a revolving financing facility of Series 2022-1 Variable Funding Senior Secured Notes (the “Variable Funding Notes”), which permits borrowings up to a maximum of $ 150.0 million, subject to certain borrowing conditions, a portion of which may be used to issue letters of credit. As of September 28, 2025, we did not have any outstanding borrowings and had available borrowing capacity of $ 96.8 million , net of letters of credits issued of $ 53.2 million . The net proceeds of the sale of the 2022 Notes were used to repay in full of $ 570.7 million in aggregate outstanding principal amount of the Company’s Series 2019-1 Class A-2-I Notes, together with the applicable make-whole premium and unpaid interest, and was used to fund a portion of the Company’s acquisition of Del Taco. As a result, the Company recorded a loss on early extinguishment of debt of $ 5.6 million during the second quarter of 2022, which was comprised of the write-off of certain deferred financing costs and a specified make-whole premium payment, and is presented in “Interest expense, net” in the consolidated statement of operations. Additionally, in connection with the 2022 Notes, the Company capitalized $ 17.4 million of debt issuance costs, which are being amortized into interest expense over the Anticipated Repayment Dates, utilizing the effective interest rate method. The costs related to our Variable Funding Notes are presented within “Other assets, net” and are being amortized over the Anticipated Repayment Dates using the straight-line method. The costs related to our Variable Funding Notes are presented within “Other assets, net” and are being amortized over the Anticipated Repayment Date of February 2027 using the straight-line method. As of September 28, 2025, the effective interest rates, including the amortization of debt issuance costs, were 4.851 %, 5.258 %, 3.796 %, and 4.347 % for the Series 2019-1 Class A-2-II Notes, Series 2019-1 Class A-2-III Notes, Series 2022-1 Class A-2-I Notes, and Series 2022-1 Class A-2-II Notes, respectively. The 2022 Notes were issued in a privately placed securitization transaction pursuant to which certain of the Company’s revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly owned indirect subsidiaries of the Company that act as Guarantors of the Notes and that have pledged substantially all of their assets, excluding certain real estate assets and subject to certain limitations, to secure the Notes. The 2022 Notes are subject to the same covenants and restrictions as the Series 2019-1 Notes. F-20 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The quarterly principal payment on the Class A-2 Notes may be suspended when the specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as defined in the Indenture), is less than or equal to 5.0 x. Exceeding the leverage ratio of 5.0 x does not violate any covenant related to the Class A-2 Notes. Subsequent to closing the issuance of the 2022 Notes, the Company has had a leverage ratio of greater than 5.0 x and, accordingly, the Company is making the scheduled principal payments on its 2022 Notes and Series 2019-1 Notes. Guarantees and collateral — Pursuant to the Guarantee and Collateral Agreement, dated July 8, 2019 (the “Guarantee and Collateral Agreement”), among the Guarantors, in favor of the trustee, the Guarantors guarantee the obligations of the Master Issuer under the Indenture and related documents and secure the guarantee by granting a security interest in substantially all of their assets. The Notes are secured by a security interest in substantially all of the assets of the Master Issuer and the Guarantors (collectively, the “Securitization Entities”). The assets of the Securitization Entities include most of the revenue-generating assets of the Company and its subsidiaries, which principally consist of franchise-related agreements, certain company-operated restaurants, intellectual property and license agreements for the use of intellectual property. Upon certain trigger events, mortgages will be required to be prepared and recorded on the real estate assets. Revolving credit facility — In 2022, Del Taco entered into a syndicated revolving credit facility with an aggregate principal amount of up to $ 75.0 million, which matured on February 28, 2025 and was not renewed . Maturities of long-term debt — Assuming repayment by the Anticipated Repayment Dates and based on the leverage ratio as of September 28, 2025, principal payments on our long-term debt outstanding at September 28, 2025 for each of the next five fiscal years and thereafter are as follows ( in thousands ): 2026 $ 289,364 2027 516,034 2028 15,538 2029 427,292 2030 11,046 Thereafter 456,592 $ 1,715,866 8. 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.” F-21 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 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 Finance lease ROU assets (1) 126 416 Total ROU assets $ 1,371,580 $ 1,410,499 Liabilities: Current operating lease liabilities $ 159,267 $ 162,017 Current finance lease liabilities (2) 208 602 Long-term operating lease liabilities 1,259,577 1,286,415 Long-term finance lease liabilities (2) — — 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 ________________________ (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 % F-22 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 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 ________________________ (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. F-23 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 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 Franchise rental revenues $ 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 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 ): 2025 2024 2023 Restructuring, integration and strategic initiatives $ 7,298 $ 15,631 $ 9,112 Costs of closed restaurants and other 8,467 2,975 4,786 Restaurant impairment charges 4,384 8,008 4,569 Accelerated depreciation 99 699 541 Gains on acquisition of restaurants ( 6 ) ( 2,702 ) — Losses (gains) on disposition of property and equipment, net 2,161 185 ( 8,171 ) Other operating expenses, net $ 22,403 $ 24,796 $ 10,837 Restructuring, integration and strategic initiatives — Costs incurred primarily relate to strategic consulting fees as well as severance, retention bonuses and technology integration from the initial acquisition and divestiture of Del Taco. F-24 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Cost of closed restaurants — Cost of closed restaurants primarily include ongoing costs associated with closed restaurants and cancelled project costs. Restaurant impairment charges — In 2025, impairment charges included $ 1.9 million relating to under-performing Jack in the Box restaurants and $ 2.4 million relating to under-performing Del Taco restaurants. In 2024, impairment charges included $ 5.4 million relating to under-performing Jack in the Box restaurants and $ 2.6 million relating to underperforming Del Taco restaurants. In 2023, impairment charges included $ 4.4 million relating to under-performing Del Taco restaurants. Accelerated depreciation — When a long-lived asset will be replaced or otherwise disposed of prior to the end of its estimated useful life, the useful life of the asset is adjusted based on the estimated disposal date and accelerated depreciation is recognized. In 2025, 2024 and 2023, accelerated depreciation primarily related to facility improvements, restaurant remodels, and information technology assets. Gains on acquisition of restaurants — In 2024, gains primarily relate to the gains on acquisition of Del Taco restaurants. Refer also to Note 4, Summary of Refranchisings and Franchise Acquisitions, in the notes to the consolidated financial statements for results of these tests and for additional information. Losses (gains) on disposition of property and equipment, net — In 2025, losses primarily relate to the disposal of other property and equipment for Jack in the Box and Del Taco. In 2024, losses primarily relate to the disposal of other property and equipment for Del Taco, partially offset by gains primarily relating to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale. In 2023, gains primarily relate to the sale of Jack in the Box restaurant properties to franchisees who were leasing the properties from us prior to the sale. 10. SEGMENT REPORTING The Company’s principal business consists of developing, operating and franchising our Jack in the Box and Del Taco restaurant brands, each of which is considered a reportable operating segment. Our chief operating decision maker (“CODM”) in 2025 is our Chief Executive Officer, Lance Tucker. Our segment reporting structure reflects the Company’s current management structure, internal reporting method and financial information used in deciding how to allocate Company resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. The Company measures and evaluates our segments based on segment revenues and segment profit (loss). The CODM reviews segment profits and significant expense categories to assess performance, identify trends or changes, and determine the proper allocation of resources. The reportable segments do not include an allocation of the costs related to shared service functions, such as accounting/finance, human resources, audit services, legal, tax and treasury. These costs are reflected in the caption “general and administrative and other unallocated” below. Our measure of segment profit excludes general and administrative and other unallocated costs, depreciation and amortization, company-owned life insurance (“COLI”) gains/ losses, impairment of goodwill and intangible assets, other operating expense (income), net, and gains on the sale of company-operated restaurants. We do not evaluate, manage or measure performance of segments using asset values, pension or post-retirement expense, interest income and expense, or income tax information as they are not viewed by the Company as relevant to segment performance. Accordingly, this information by segment is not prepared or disclosed. F-25 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table provides information related to our operating segments in each period ( in thousands ): 2025 Jack in the Box Del Taco Total Revenues by segment $ 1,153,967 $ 311,347 $ 1,465,314 Less: Food and packaging 116,472 54,605 171,077 Payroll and employee benefits 140,789 81,366 222,155 Occupancy and other operating costs 77,807 51,381 129,188 Other segment expense (1) 46,073 26,536 72,609 Franchise expenses 443,126 73,838 516,964 Segment profit (loss): 329,700 23,621 353,321 General and administrative and other unallocated 91,243 Depreciation and amortization 58,314 (Gain)/ loss on COLI ( 6,882 ) Impairment of goodwill and intangible assets 209,556 Other operating expense (income), net 22,403 Gains on the sale of company-operated restaurants ( 3,243 ) Other pension and post-retirement expenses, net 5,814 Interest expense, net 78,941 (Loss) earnings before income taxes $ ( 102,825 ) ________________________ (1) Other segment expense represents selling, general, and administrative costs, pre-opening costs, and certain amortization expenses attributable to the identified operating segments. 2024 Jack in the Box Del Taco Total Revenues by segment $ 1,197,420 $ 373,886 $ 1,571,306 Less: Food and packaging 126,064 73,207 199,271 Payroll and employee benefits 134,678 103,369 238,047 Occupancy and other operating costs 73,736 65,569 139,305 Other segment expense 32,385 28,416 60,801 Franchise expenses 455,625 66,166 521,791 Segment profit (loss): 374,932 37,159 412,091 General and administrative and other unallocated 100,004 Depreciation and amortization 59,776 (Gain)/ loss on COLI ( 14,390 ) Impairment of goodwill and intangible assets 162,624 Other operating expense (income), net 24,796 Gains on the sale of company-operated restaurants ( 3,255 ) Other pension and post-retirement expenses, net 6,843 Interest expense, net 80,016 (Loss) earnings before income taxes $ ( 4,323 ) F-26 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 2023 Jack in the Box Del Taco Total Revenues by segment $ 1,195,311 $ 496,995 $ 1,692,306 Less: Food and packaging 130,905 119,931 250,836 Payroll and employee benefits 127,357 147,241 274,598 Occupancy and other operating costs 69,216 94,057 163,273 Other segment expense 30,757 40,535 71,292 Franchise expenses 454,390 41,073 495,463 Segment profit (loss): 382,686 54,158 436,844 General and administrative and other unallocated 108,918 Depreciation and amortization 62,287 (Gain)/ loss on COLI ( 5,953 ) Other operating expense (income), net 10,837 Gains on the sale of company-operated restaurants ( 17,998 ) Other pension and post-retirement expenses, net 6,967 Interest expense, net 82,446 (Loss) earnings before income taxes $ 189,340 11. INCOME TAXES Income taxes consist of the following in each fiscal year ( in thousands ): 2025 2024 2023 Current: Federal $ 25,760 $ 32,251 $ 53,229 State 9,839 10,933 17,274 35,599 43,184 70,503 Deferred: Federal ( 42,744 ) ( 2,696 ) ( 10,642 ) State ( 14,961 ) ( 8,116 ) ( 1,347 ) ( 57,705 ) ( 10,812 ) ( 11,989 ) Income tax (benefit) expense from continuing operations $ ( 22,106 ) $ 32,372 $ 58,514 F-27 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The expense (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to pre-tax income (loss). The sources and tax effects of the differences are as follows (in thousands): 2025 2024 2023 Pre-tax (loss) income $ ( 102,825 ) $ ( 4,323 ) $ 189,340 Income tax at federal statutory rate ( 21,593 ) 21.0 % ( 908 ) 21.0 % 39,821 21.0 % State income taxes, net of federal benefit ( 5,450 ) 5.3 % ( 233 ) 5.4 % 10,587 5.6 % Stock-based compensation expense 1,568 ( 1.5 ) % 51 ( 1.2 ) % 71 — % Tax credits, net of valuation allowance ( 334 ) 0.3 % ( 340 ) 7.9 % ( 818 ) ( 0.4 ) % Nondeductible goodwill related to impairment 6,602 ( 6.4 ) % 35,075 ( 811.5 ) % — — % Nondeductible goodwill related to the sale of company-operated restaurants 120 ( 0.1 ) % 1,787 ( 41.3 ) % 9,280 4.9 % State audit accrual ( 747 ) 0.7 % — — % — — % Benefit related to COLIs ( 2,271 ) 2.2 % ( 4,703 ) 108.8 % ( 1,947 ) ( 1.0 ) % Officers’ compensation limitation ( 333 ) 0.3 % 1,306 ( 30.2 ) % 1,188 0.6 % Other, net 332 ( 0.3 ) % 337 ( 7.8 ) % 332 0.2 % Effective tax rate $ ( 22,106 ) 21.5 % 32,372 ( 748.9 ) % 58,514 30.9 % The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at each fiscal year-end are presented below ( in thousands ): 2025 2024 Deferred tax assets: Operating and finance lease liabilities $ 372,538 $ 381,522 Deferred income 22,974 15,465 Accrued defined benefit pension and postretirement benefits 19,096 22,074 Accrued insurance 7,145 7,135 Share-based compensation 5,869 6,814 Deferred interest deduction 5,606 1,664 Accrued legal settlements 5,377 4,764 Property and equipment, net of impairment 4,107 5,847 Accrued incentive compensation 1,921 2,692 Other reserves and allowances 1,778 1,241 Accrued compensation expense 1,325 1,254 Capitalized research costs 1,152 1,443 Tax loss and tax credit carryforwards 398 387 Other, net 2,509 2,537 Total gross deferred tax assets 451,795 454,839 Valuation allowance — — Total net deferred tax assets 451,795 454,839 Deferred tax liabilities: Operating and finance lease ROU assets ( 367,274 ) ( 378,531 ) Intangible assets ( 41,128 ) ( 88,378 ) Other ( 2,125 ) ( 1,542 ) Total gross deferred tax liabilities ( 410,527 ) ( 468,451 ) Net deferred tax assets (liabilities) $ 41,268 $ ( 13,612 ) Deferred tax assets as of September 28, 2025 include state gross net operating loss carryforwards of approximately $ 10.6 million, of which $ 8.6 million has an indefinite carryforward. The remainder will expire at various times between 2026 and 2042. The Company believes it is more likely than not that all deferred tax assets will be realized through future taxable income or alternative tax strategies. F-28 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The major jurisdictions in which the Company files income tax returns includes the United States and states in which we operate that impose an income tax. The federal statutes of limitations have not expired for fiscal year 2022 and forward. The statutes of limitations for California, which constitutes the Company's major state tax jurisdiction, have not expired for fiscal years 2021 and forward. 12. RETIREMENT PLANS We sponsor programs that provide retirement benefits to our employees. These programs include defined contribution plans, defined benefit pension plans, and postretirement healthcare plans. Defined contribution plans — We maintain a qualified savings plan pursuant to Section 401(k) of the Internal Revenue Code (“IRC”) called the Jack in the Box Inc. Easy$aver Plus Plan. Previously, we also maintained the Del Taco Savings Plan which was merged into the Easy$aver Plus Plan effective January 1, 2024. The plan allows all employees who meet certain age and minimum service requirements to defer a percentage of their pay on a pre-tax basis. Our contributions under these plans were $ 3.4 million, $ 3.3 million, and $ 2.3 million in each fiscal years 2025, 2024 and 2023, respectively. We also maintain an unfunded, non-qualified deferred compensation plan for key executives and other members of management whose compensation deferrals or company matching contributions to the qualified savings plan are limited due to IRC rules. Effective January 1, 2016, this non-qualified plan was amended to replace the company matching contribution with an annual restoration match that is intended to “restore” up to the full match for participants whose elective deferrals (and related company matching contributions) to the qualified savings plan were limited due to IRC rules. A participant’s right to the Company restoration match vests immediately. This plan allows participants to defer up to 50 % of their salary and 85 % of their bonus, on a pre-tax basis. Our contributions under the non-qualified deferred compensation plan were $ 0.1 million in fiscal year 2025, $ 0.2 million in fiscal year 2024, and $ 0.1 million in fiscal year 2023. Defined benefit pension plans — We sponsor two defined benefit pension plans, a “Qualified Plan” covering substantially all full-time employees hired prior to January 1, 2011, and an unfunded supplemental executive retirement plan (“SERP”) which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. In fiscal 2011, the Board of Directors approved changes to our Qualified Plan whereby participants no longer accrue benefits effective December 31, 2015. Benefits under both plans are based on the employees’ years of service and compensation over defined periods of employment. In the fourth quarter of fiscal 2023, the Company amended its Qualified Plan to purchase certain annuity contracts from a third-party company, relieving the Company of its related obligation for future payment (the “Annuity Purchase Agreement”). As a result of the Annuity Purchase Agreement, the Company’s Qualified Plan paid $ 14.4 million from its plan assets to the third-party, thereby reducing the plan’s pension benefit obligation (“PBO”). Postretirement healthcare plans — We also sponsor two healthcare plans, closed to new participants, that provide postretirement medical benefits to certain employees who have met minimum age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance. F-29 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Obligations and funded status — The following table provides a reconciliation of the changes in benefit obligations, plan assets, and funded status of our retirement plans for each fiscal year ( in thousands ): Qualified Plan SERP Postretirement Health Plans 2025 2024 2025 2024 2025 2024 Change in benefit obligation: Obligation at beginning of year $ 297,920 $ 266,345 $ 57,097 $ 53,513 $ 12,654 $ 11,891 Interest cost 14,825 15,791 2,778 3,188 615 711 Participant contributions — — — — 103 102 Actuarial (gain) loss ( 17,080 ) 29,769 ( 3,572 ) 5,199 320 1,186 Benefits paid ( 14,275 ) ( 13,985 ) ( 5,169 ) ( 4,803 ) ( 1,445 ) ( 1,268 ) Settlements and other — — — — 116 32 Obligation at end of year $ 281,390 $ 297,920 $ 51,134 $ 57,097 $ 12,363 $ 12,654 Change in plan assets: Fair value at beginning of year $ 302,439 $ 275,143 $ — $ — $ — $ — Actual return on plan assets 2,405 41,281 — — — — Participant contributions — — — — 103 102 Employer contributions — — 5,169 4,803 1,226 1,134 Benefits paid ( 14,275 ) ( 13,985 ) ( 5,169 ) ( 4,803 ) ( 1,445 ) ( 1,268 ) Settlements and other — — — — 116 32 Fair value at end of year $ 290,569 $ 302,439 $ — $ — $ — $ — Funded (unfunded) status at end of year $ 9,179 $ 4,519 $ ( 51,134 ) $ ( 57,097 ) $ ( 12,363 ) $ ( 12,654 ) Amounts recognized on the balance sheet: Noncurrent assets $ 9,179 $ 4,519 $ — $ — $ — $ — Current liabilities — — ( 4,814 ) ( 5,124 ) ( 1,140 ) ( 1,111 ) Noncurrent liabilities — — ( 46,320 ) ( 51,973 ) ( 11,223 ) ( 11,543 ) Total asset (liability) recognized $ 9,179 $ 4,519 $ ( 51,134 ) $ ( 57,097 ) $ ( 12,363 ) $ ( 12,654 ) Amounts in AOCI not yet reflected in net periodic benefit cost: Unamortized actuarial loss (gain), net $ 94,069 $ 100,938 $ 13,980 $ 18,542 $ ( 7,034 ) $ ( 8,132 ) Unamortized prior service cost — — — — — — Total $ 94,069 $ 100,938 $ 13,980 $ 18,542 $ ( 7,034 ) $ ( 8,132 ) Other changes in plan assets and benefit obligations recognized in OCI: Net actuarial loss (gain) $ ( 4,453 ) $ 3,470 $ ( 3,572 ) $ 5,199 $ 320 $ 1,186 Amortization of actuarial (loss) gain ( 2,416 ) ( 2,403 ) ( 990 ) ( 632 ) 778 914 Amortization of prior service cost — — — ( 14 ) — — Total recognized in OCI ( 6,869 ) 1,067 ( 4,562 ) 4,553 1,098 2,100 Net periodic benefit (credit) cost 2,209 3,212 3,768 3,834 ( 163 ) ( 203 ) Total recognized in comprehensive income $ ( 4,660 ) $ 4,279 $ ( 794 ) $ 8,387 $ 935 $ 1,897 The net actuarial gain arising in the current year for the benefit obligations was primarily due to an increase in the discount rate on the qualified plan from the prior year. Additional year-end pension plan information — The PBO represents the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future pay increases. The accumulated benefit obligation (“ABO”) also reflects the actuarial present value of benefits attributable to employee service rendered to date but does not include the effects of estimated future pay increases. Therefore, the ABO as compared to plan assets is an indication of the assets currently available to fund vested and nonvested benefits accrued through the end of the fiscal year. The funded status is measured as the difference between the fair value of a plan’s assets and its PBO. Since the Qualified Plan is frozen and the SERP has no active participants, the PBO and ABO are equal. F-30 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) As of September 28, 2025 and September 29, 2024, respectively, the Qualified Plan’s ABO was less than the fair value of its plan assets. The SERP is an unfunded plan and, as such, had no plan assets as of September 28, 2025 and September 29, 2024. The following sets forth the PBO, ABO, and fair value of plan assets of our pension plans as of the measurement date in each fiscal year ( in thousands ): 2025 2024 Qualified Plan: Projected benefit obligation $ 281,390 $ 297,920 Accumulated benefit obligation $ 281,390 $ 297,920 Fair value of plan assets $ 290,569 $ 302,439 SERP: Projected benefit obligation $ 51,134 $ 57,097 Accumulated benefit obligation $ 51,134 $ 57,097 Fair value of plan assets $ — $ — Net periodic benefit cost — The components of the fiscal year net periodic benefit cost were as follows ( in thousands ): 2025 2024 2023 Qualified Plan: Interest cost $ 14,825 $ 15,791 $ 16,068 Expected return on plan assets ( 15,032 ) ( 14,982 ) ( 15,105 ) Actuarial loss 2,416 2,403 2,349 Net periodic benefit cost $ 2,209 $ 3,212 $ 3,312 SERP: Interest cost $ 2,778 $ 3,188 $ 3,149 Actuarial loss 990 632 718 Amortization of unrecognized prior service cost — 14 19 Net periodic benefit cost $ 3,768 $ 3,834 $ 3,886 Postretirement health plans: Interest cost $ 615 $ 711 $ 700 Actuarial (gain) loss ( 778 ) ( 914 ) ( 932 ) Net periodic benefit (credit) cost $ ( 163 ) $ ( 203 ) $ ( 232 ) Prior service costs are amortized on a straight-line basis from date of participation to full eligibility. Unrecognized gains or losses are amortized using the “corridor approach” under which the net gain or loss in excess of 10% of the greater of the PBO or the market-related value of the assets, if applicable, is amortized. For our Qualified Plan, actuarial losses are amortized over the average future expected lifetime of all participants expected to receive benefits. For our SERP, actuarial losses are amortized over the expected remaining future lifetime for inactive participants, and for our postretirement health plans, actuarial losses are amortized over the expected remaining future lifetime of inactive participants expected to receive benefits. F-31 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Assumptions — We determine our actuarial assumptions on an annual basis. In determining the present values of our benefit obligations and net periodic benefit costs as of and for the fiscal years ended September 28, 2025, September 29, 2024, and October 1, 2023, we used the following weighted-average assumptions: 2025 2024 2023 Assumptions used to determine benefit obligations (1) (2): Qualified Plan: Discount rate 5.63 % 5.11 % 6.10 % SERP: Discount rate 5.45 % 5.09 % 6.26 % Postretirement health plans: Discount rate 5.39 % 5.09 % 6.27 % Assumptions used to determine net periodic benefit cost (2) (3): Qualified Plan: Discount rate 5.11 % 6.10 % 5.63 % Long-term rate of return on assets 5.10 % 5.60 % 5.10 % SERP: Discount rate 5.09 % 6.26 % 5.80 % Postretirement health plans: Discount rate 5.09 % 6.27 % 5.82 % ________________________ (1) Determined as of end of year. (2) There is no assumed rate of increase, as there are no active employees in any of the fiscal years presented. (3) Determined as of beginning of year . The assumed discount rates were determined by considering the average of pension yield curves constructed of a population of high-quality bonds with a Moody’s or Standard and Poor’s rating of “AA” or better whose cash flow from coupons and maturities match the year-by-year projected benefit payments from the plans. As benefit payments typically extend beyond the date of the longest maturing bond, cash flows beyond 30 years were discounted back to the 30th year and then matched like any other payment. The assumed expected long-term rate of return on assets is the weighted-average rate of earnings expected on the funds invested or to be invested to provide for the pension obligations. The long-term rate of return on assets was determined taking into consideration our projected asset allocation and economic forecasts prepared with the assistance of our actuarial consultants. The assumed discount rate and expected long-term rate of return on assets have a significant effect on amounts reported for our pension and postretirement plans. If the discount rate and expected rate of return on assets used were to decrease by 0.25 %, fiscal 2025 earnings before income taxes would have decreased by less than $ 0.1 million and decreased by $ 0.7 million, respectively. For measurement purposes, the weighted-average assumed health care cost trend rates for our postretirement health plans were as follows for each fiscal year: 2025 2024 2023 Healthcare cost trend rate for next year: Participants under age 65 6.50 % 6.25 % 6.25 % Participants age 65 or older 6.50 % 6.25 % 6.25 % Rate to which the cost trend rate is assumed to decline: Participants under age 65 4.50 % 4.50 % 4.50 % Participants age 65 or older 4.50 % 4.50 % 4.50 % Year the rate reaches the ultimate trend rate: Participants under age 65 2032 2031 2031 Participants age 65 or older 2032 2031 2031 The assumed healthcare cost trend rate represents our estimate of the annual rates of change in the costs of the healthcare benefits currently provided by our postretirement plans. The healthcare cost trend rate implicitly considers estimates of healthcare inflation, changes in healthcare utilization and delivery patterns, technological advances and changes in the health status of the plan participants. The healthcare cost trend rate assumption has a significant effect on the amounts reported. F-32 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Plan assets — Our investment philosophy is to invest assets in a prudent manner to meet the obligation of providing benefits to Plan participants and their beneficiaries in accordance with the time horizon appropriate for the Plan while employing asset diversification to minimize the risk of large losses. Our asset allocation strategy utilizes multiple investment managers in order to maximize the plan’s return while minimizing risk. We regularly monitor our asset allocation, and senior financial management and the Board of Directors review performance results quarterly. We continually review our target asset allocation for our Qualified Plan and when changes are made, we reallocate our plan assets over a period of time, as deemed appropriate by senior financial management, to achieve our target asset allocation. Our plan asset allocation at the end of each fiscal 2025 and 2024 and respective target allocations were as follows: 2025 Target Minimum Maximum Cash & cash equivalents 2 % — % — % — % Global equity 12 % 12 % 7 % 17 % Alternative credit 11 % 9 % 4 % 14 % Real assets 9 % 9 % 4 % 14 % Liability-hedging assets 66 % 70 % 60 % 80 % 100 % 100 % 2024 Target Minimum Maximum Cash & cash equivalents 1 % — % — % — % Global equity 13 % 12 % 7 % 17 % Alternative credit 11 % 9 % 4 % 14 % Real assets 9 % 9 % 4 % 14 % Liability-hedging assets 66 % 70 % 60 % 80 % 100 % 100 % The Company measures its defined benefit plan assets and obligations as of the month-end date closest to its fiscal year end, which is a practical expedient under FASB authoritative guidance. The fair values of the Qualified Plan’s assets by asset category are as follows ( in thousands ): Total Other (i.e., NAV Assets) (3) Quoted Prices in Active Markets for Identical (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2025: Cash and cash equivalents (1) $ 5,793 $ — $ — $ 5,793 $ — Equity: Global equity (2) 35,961 35,961 — — — Fixed income: Liability-hedging assets (4) 190,685 87,111 — 103,574 — Alternative credit (5) 31,629 31,629 — — — Real assets (6) 26,501 26,501 — — — $ 290,569 $ 181,202 $ — $ 109,367 $ — Fair Value at September 30, 2024: Cash and cash equivalents (1) $ 2,933 $ — $ — $ 2,933 $ — Equity: Global equity (2) 40,193 40,193 — — — Fixed income: Liability-hedging assets (4) 200,675 86,089 — 114,586 — Alternative credit (5) 32,100 32,100 — — — Real assets (6) 26,538 26,538 — — — $ 302,439 $ 184,920 $ — $ 117,519 $ — ________________________ (1) Cash and cash equivalents are comprised of commercial paper, short-term bills and notes, and short-term investment funds, which are valued at quoted prices in active markets for similar securities. F-33 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (2) Global equity is comprised of investments in publicly traded common stocks and other equity-type securities issued by companies throughout the world, including convertible securities, preferred stock, rights and warrants. (3) Certain investments that are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient are not categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (4) Liability-hedging assets are comprised of investments in fixed income securities or derivatives thereof that are intended to mitigate interest rate risk or reduce the interest rate duration mismatch between the assets and liabilities of the Plan. (5) Alternative credit includes investments in a range of public and private credit securities, including below investment grade rated bonds and loans, securitized credit, and emerging market debt. (6) Real assets are investments in public and private debt and equity investments, including but not limited to real estate, infrastructure, timberland and agriculture/farmland. Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of the date of our last actuarial funding valuation, the minimum required contribution is $ 1.6 million and must be satisfied by September 15, 2026. At this time, we do not anticipate making any contributions to our Qualified Plan in fiscal 2026 as this requirement may also be satisfied by application of the available funding balances. Contributions expected to be paid in the next fiscal year, the projected benefit payments for each of the next five fiscal years, and the total aggregate amount for the subsequent five fiscal years are as follows ( in thousands ): Defined Benefit Plans Postretirement Health Plans Estimated net contributions during fiscal 2026 $ 4,814 $ 1,170 Estimated future year benefit payments during fiscal years: 2026 $ 20,915 $ 1,170 2027 $ 21,246 $ 1,182 2028 $ 21,635 $ 1,186 2029 $ 22,056 $ 1,180 2030 $ 22,455 $ 1,165 2031-2035 $ 117,352 $ 5,296 We will continue to evaluate contributions to our Qualified Plan based on changes in pension assets as a result of asset performance in the current market and economic environment. Expected benefit payments are based on the same assumptions used to measure our benefit obligations at September 28, 2025. 13. SHARE-BASED EMPLOYEE COMPENSATION Stock incentive plans — We offer share-based compensation plans to attract, retain, and motivate key officers, employees, and non-employee directors to work toward the financial success of the Company. Our stock incentive plans are administered by the Compensation Committee of the Board of Directors and have been approved by the stockholders of the Company. The terms and conditions of our share-based awards are determined by the Compensation Committee for each award date and may include provisions for the exercise price, expirations, vesting, restriction on sales, and forfeitures, as applicable. We issue new shares to satisfy stock issuances under our stock incentive plans. Our Amended and Restated 2004 Stock Incentive Plan (“Prior Plan”) authorized the issuance of up to 11,600,000 common shares in connection with the granting of stock options, stock appreciation rights, restricted stock purchase rights, restricted stock bonuses, restricted stock units, or performance units to our employees and directors. As of January 1, 2023, no additional awards were granted under the Prior Plan. Our Jack in the Box Inc. 2023 Omnibus Incentive Plan (“Plan”) authorizes the issuance of up to 2,500,000 common shares plus Prior Plan returning shares in connection with outstanding awards as of January 6, 2023 that on or following such date are not issued, settled in cash, or fail to vest. The Plan is intended to help the Company secure and retain the services of eligible award recipients, provide incentives for such persons to exert maximum efforts for the success of the Company, and provide a means by which such persons may benefit from increases in value of the common stock. The Plan provides for the granting of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, or performance stock awards, to our employees and directors. There were 972,739 shares of common stock available for future issuance under this plan as of September 28, 2025. F-34 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) We also maintain a deferred compensation plan for non-management directors under which those who are eligible to receive retainers may choose to defer receipt of their compensation. The deferred amounts are converted to stock equivalents. The plan requires settlement in shares of our common stock based on the number of stock equivalents and dividend equivalents at the time of a participant’s separation from the Board of Directors. This plan provides for the issuance of up to 350,000 shares of common stock in connection with the crediting of stock equivalents. There were 105,811 shares of common stock available for future issuance under this plan as of September 28, 2025. Compensation expense — The components of share-based compensation expense, included within “Selling, general, and administrative expenses” in our consolidated statements of earnings, in each fiscal year are as follows ( in thousands ): 2025 2024 2023 Nonvested restricted stock units $ 9,796 $ 10,128 $ 7,598 Stock options — — 4 Performance share awards ( 1,558 ) 3,308 3,195 Nonvested restricted stock awards — — 166 Non-management directors’ deferred compensation — 35 242 Total share-based compensation expense $ 8,238 $ 13,471 $ 11,205 Nonvested restricted stock units — Nonvested restricted stock units (“RSUs”) are generally issued to employees and non-employee directors. Grants to executive officers of time-vesting RSUs vest ratably over four years or three years , are subject to a stock holding requirement of 50 % of after-tax net shares resulting from the vesting of RSUs, and must be held until the multiple of base salary stock ownership is met. There were 4,046 of these RSU’s vesting over four years , and 219,954 RSU’s vesting over three years , outstanding as of September 28, 2025. RSUs issued to non-management directors vest 12 months from the date of grant, or upon termination of board service, including RSUs for which the director elected to defer receipt until termination of board service, and totaled 84,801 units outstanding as of September 28, 2025. RSUs issued to certain other employees either cliff vest or vest ratably over three years and totaled 234,751 units outstanding as of September 28, 2025. These awards are amortized to compensation expense over the estimated vesting period based upon the fair value of our common stock on the award date discounted by the present value of the expected dividend stream over the vesting period. The following is a summary of RSU activity for fiscal 2025: Shares Weighted- Average Grant Date Fair Value RSUs outstanding at September 29, 2024 381,738 $ 69.59 Granted 461,091 $ 38.04 Released ( 146,379 ) $ 71.38 Forfeited ( 152,898 ) $ 54.46 RSUs outstanding at September 28, 2025 543,552 $ 46.60 As of September 28, 2025, there was approximately $ 12.3 million of total unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 1.9 years. The weighted-average grant date fair value of awards granted was $ 38.04 , $ 67.74 , and $ 68.56 in fiscal years 2025, 2024, and 2023, respectively. In fiscal years 2025, 2024, and 2023, the total fair value of RSUs that vested and were released was $ 10.4 million, $ 8.0 million, and $ 4.6 million, respectively. Stock options — Option grants have contractual terms of seven years and employee options vest over a three-year period. Options may vest sooner upon retirement from the Company for employees meeting certain age and years of service thresholds. All option grants provide for an option exercise price equal to the closing market value of the common stock on the date of grant. F-35 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following is a summary of stock option activity for fiscal 2025: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Options outstanding at September 29, 2024 14,011 $ 84.23 Expired ( 8,499 ) $ 90.06 Options outstanding at September 28, 2025 5,512 $ 75.23 1.22 $ — Options exercisable at September 28, 2025 5,512 $ 75.23 1.22 $ — The aggregate intrinsic value in the table above is the amount by which the current market price of our stock on September 28, 2025 exceeds the weighted-average exercise price. We use a valuation model to determine the fair value of options granted that requires the input of highly subjective assumptions, including the expected volatility of the stock price. No stock option awards were granted in fiscal 2025, 2024, or 2023. As of September 28, 2025, there was no unrecognized compensation cost related to stock options grants. There were no stock options exercised in fiscal year 2025 or 2024. The total intrinsic value of stock options exercised was less than $ 0.1 million in fiscal 2023. Performance share awards — Performance share awards, granted in the form of stock units, represent a right to receive a certain number of shares of common stock based on the achievement of corporate performance goals and continued employment during the vesting period. Performance share awards issued to executives vest at the end of a three-year period and vested amounts may range from 0 % to a maximum of 150 % of targeted amounts depending on the achievement of performance measures at the end of a three-year period. If the awardee ceases to be employed by the Company prior to the last day of the performance period due to retirement or death under the Plan, and including disability under the Prior Plan, the performance share awards become vested pro-rata based on the number of full accounting periods the awardee was continuously employed by the Company during the performance period. The expected cost of the shares is based on the fair value of our stock on the date of grant and is reflected over the vesting period with a reduction for estimated forfeitures. These awards may be settled in cash or shares of common stock at the election of the Company on the date of grant. It is our intent to settle these awards with shares of common stock. In May 2025, certain executives were granted market-based performance share awards of which the vesting is contingent upon meeting Company stock price hurdles satisfied after 20 consecutive trading days at the target price or higher, as well as continuous service during the performance period. The number of shares that will vest varies depending on the hurdles achieved. These awards vest at the completion of the third year from the grant date. The number of shares that can vest ranges from 0 % to 200 % of the target number of performance shares granted. Expense is recorded on a straight-line basis over the vesting period based on the fair value of the shares as determined by a Monte Carlo simulation on the grant date. The Monte Carlo simulation used a volatility assumption of 42.13 %, a risk-free interest rate of 3.62 %, a dividend yield of 0 %, and a term of three years which resulted in a fair value per share of $ 32.16 . The following is a summary of performance share award activity for fiscal 2025: Shares Weighted- Average Grant Date Fair Value Performance share awards outstanding at September 29, 2024 145,167 $ 70.53 Granted 214,184 $ 37.11 Issued ( 39,789 ) $ 78.46 Forfeited ( 159,120 ) $ 54.58 Performance adjustments 7,897 $ 78.95 Performance share awards outstanding at September 28, 2025 168,339 $ 39.25 As of September 28, 2025, there was approximately $ 2.5 million of total unrecognized compensation cost related to performance share awards, which is expected to be recognized over a weighted-average period of 2.8 years. The weighted-average grant date fair value of awards granted was $ 37.11 , $ 70.19 , and $ 65.74 in fiscal years 2025, 2024, and 2023, respectively. The total fair value of awards that became fully vested during fiscal years 2025, 2024, and 2023 was $ 0.9 million, $ 2.7 million, and $ 1.8 million, respectively. F-36 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Nonvested restricted stock awards — As part of the Merger Agreement, on the Closing Date, the Company assumed Del Taco’s historical equity compensation plans. The awards under Del Taco’s historical equity compensation plans that were not subject to accelerated vesting were exchanged for replacement awards of the Company, which included Del Taco’s non-accelerating restricted stock awards. Immediately following the Merger, these replacement awards were modified to accelerate the remaining vesting period to be one year following the Closing Date, other than the awards already scheduled to vest on June 30, 2022. As of September 28, 2025, there was no unrecognized compensation cost related to nonvested stock awards. The total fair value of awards that vested and were released during fiscal 2023 was $ 0.4 million. Non-management directors’ deferred compensation — All awards outstanding under our directors’ deferred compensation plan are accounted for as equity-based awards and deferred amounts are converted into stock equivalents based on a per share price equal to the average of the closing price of our common stock for the 10 trading days immediately preceding the date the deferred compensation is credited to the director’s account. During fiscal 2025, 2024, and 2023, 765 shares of common stock were issued in connection with a director retirement. The following is a summary of the stock equivalent activity for fiscal 2025: Stock Equivalents Weighted- Average Grant Date Fair Value Stock equivalents outstanding at September 29, 2024 91,885 $ 61.53 Dividend equivalents 3,714 $ 32.66 Stock distribution ( 765 ) $ 69.34 Stock equivalents outstanding at September 28, 2025 94,834 $ 50.83 14. STOCKHOLDERS’ DEFICIT Repurchases of common stock — In fiscal 2025, the Company purchased 0.1 million shares of its common stock for an aggregate cost of $ 5.0 million, including applicable excise tax. As of September 28, 2025, there was $ 175.0 million remaining amount under share repurchase programs authorized by the Board of Directors which do not expire. Dividends — In fiscal 2025, the Board of Directors declared two cash dividends of $ 0.44 , respectively, totaling $ 16.7 million. Future dividends are subject to approval by our Board of Directors. As previously announced, the Company has discontinued its dividend. Stockholder Rights Plan — On July 1, 2025, the Board of Directors adopted a limited-duration stockholder rights plan and declared a dividend of one right (a “Right”) for each outstanding share of the Company’s common stock held of record at the close of business on July 14, 2025. The Rights will generally become exercisable if a person or group acquires beneficial ownership of 12.5 % or more of the outstanding shares of the Company’s common stock, subject to certain exceptions (including an exception for existing persons who own in excess of such triggering percentage and do not acquire additional shares of the Company’s common stock). If the Rights become exercisable, all holders of Rights (other than the triggering person or group) will be entitled to purchase shares of the Company’s common stock at a 50 % discount to the then-current market price or the Company may exchange each Right held by such holders for one share of the Company’s common stock. The terms of the Rights are set forth in the Stockholder Protection Rights Agreement, dated as of July 1, 2025, by and between the Company and Computershare Trust Company, N.A., as rights agent (the “Rights Agreement”). The Rights will expire on July 1, 2026, unless the Rights are earlier redeemed, or the Rights Agreement is terminated, by the Board of Directors. 15. AVERAGE SHARES OUTSTANDING Our basic earnings per share calculation is computed based on the weighted-average number of common shares outstanding. Our diluted earnings per share calculation is computed based on the weighted-average number of common shares outstanding adjusted by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued. Potentially dilutive common shares include nonvested stock awards and units, stock options, and non-management director stock equivalents. Performance share awards are included in the average diluted shares outstanding each period if the performance criteria have been met at the end of the respective periods. F-37 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table reconciles basic weighted-average shares outstanding to diluted weighted-average shares outstanding in each fiscal year ( in thousands ): 2025 2024 2023 Weighted-average shares outstanding — basic 19,054 19,572 20,603 Effect of potentially dilutive securities: Nonvested stock awards and units — — 134 Stock options — — 1 Performance share awards — — 26 Weighted-average shares outstanding — diluted 19,054 19,572 20,764 Excluded from diluted weighted-average shares outstanding: Antidilutive 470 153 25 Performance conditions not satisfied at the end of the period 165 145 81 16. COMMITMENTS AND CONTINGENCIES Purchase commitments — Jack in the Box and Del Taco have long-term food and beverage supply agreements with certain major vendors, which provide food and fountain drink products and marketing support funding to the Company and its franchisees. These agreements require minimum purchases by the Company and its franchisees at agreed upon prices until the total volume commitments have been reached. Based on current pricing and ratio of usage at company-operated to franchised restaurants as of September 28, 2025, total food and beverage purchase requirements under these agreements is estimated to be approximately $ 136.8 million over the next twelve years . We also have entered into various arrangements with vendors providing information technology services with no early termination fees. The Company’s unconditional purchase obligations on these contracts total approximately $ 7.8 million over the next six years . Legal matters — The Company assesses contingencies, including litigation contingencies, to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in the financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of September 28, 2025, the Company had accruals of $ 19.6 million for all of its legal matters in aggregate, presented within “Accrued liabilities” on our consolidated balance sheet. Because litigation is inherently unpredictable, assessing contingencies is highly subjective and requires judgments about future events. When evaluating litigation contingencies, we may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the availability of appellate remedies, insurance coverage related to the claim or claims in question, the presence of complex or novel legal theories, and the ongoing discovery and development of information important to the matter. In addition, damage amounts claimed in litigation against us may be unsupported, exaggerated, or unrelated to possible outcomes, and as such are not meaningful indicators of our potential liability or financial exposure. The Company regularly reviews contingencies to determine the adequacy of the accruals and related disclosures. The ultimate amount of loss may differ from these estimates. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure and the ultimate amount of loss may differ materially from these estimates in the near term. Gessele v. Jack in the Box Inc. — In August 2010, five former Jack in the Box employees instituted litigation in federal court in Oregon alleging claims under the federal Fair Labor Standards Act and Oregon wage and hour laws. The plaintiffs alleged that Jack in the Box failed to pay non-exempt employees for certain meal breaks and improperly made payroll deductions for shoe purchases and for workers’ compensation expenses, and later added additional claims relating to timing of final pay and related wage and hour claims involving employees of a franchisee. In 2016, the court dismissed the federal claims and those relating to franchise employees. In June 2017, the court granted class certification with respect to state law claims of improper deductions and late payment of final wages. The parties participated in a voluntary mediation on March 16, 2020, but the matter did not settle. On October 24, 2022, a jury awarded plaintiffs approximately $ 6.4 million in damages and penalties. The Company continues to dispute liability and the damage award and both parties have filed appeals of the verdict. As of September 28, 2025, the Company has accrued the verdict amount above, as well as estimated prejudgment and post-judgment interest and fee award, for an additional $ 10.1 million. These amounts are included within “Accrued liabilities” on our consolidated balance sheet as of September 28, 2025. The Company will continue to accrue for post-judgment interest until the matter is resolved. F-38 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) J&D Restaurant Group — On April 17, 2019, the trustee for a bankrupt former franchisee filed a complaint generally alleging the Company wrongfully terminated the franchise agreements and unreasonably denied two prospective purchasers the former franchisee presented. The parties participated in a mediation in April 2021, and again in December 2022, but the matter did not settle. The trial commenced on January 9, 2023 and on February 8, 2023, the jury returned a verdict finding the Company had not breached any contracts in terminating the franchise agreements or denying the proposed buyers. However, while the jury also found the Company had not violated the California Unfair Practices Act, it found for the plaintiff on the claim for breach of implied covenant of good faith and fair dealing, and awarded $ 8.0 million in damages. On May 9, 2023, the court granted the Company’s post-trial motion, overturning the jury verdict and ordering the plaintiff take nothing on its claims. As a result, the Company reversed the prior $ 8.0 million. The Plaintiff has appealed the trial court’s post-trial rulings. As part of the appeal, the parties participated in a mediation on March 18, 2025, but the matter did not settle. On October 9, 2025, the appellate court issued an opinion affirming the trial court’s take nothing judgment in favor of the Company. As of September 28, 2025, the Company has accrued an amount commensurate with attempts to resolve the claims on its consolidated balance sheet. Other legal matters — In addition to the matters described above, we are subject to normal and routine litigation brought by former or current employees, customers, franchisees, vendors, landlords, shareholders, or others. We intend to defend ourselves in any such matters. Some of these matters may be covered, at least in part, by insurance or other third-party indemnity obligation. We record receivables from third party insurers when recovery has been determined to be probable. Lease guarantees — We remain contingently liable for certain leases relating to our former Qdoba business which we sold in fiscal 2018. Under the Qdoba Purchase Agreement, the buyer has indemnified the Company of all claims related to these guarantees. As of September 28, 2025, the maximum potential liability of future undiscounted payments under these leases is approximately $ 21.2 million. The lease terms extend for a maximum of approximately 12 more years, and we would remain a guarantor of the leases in the event the leases are extended for any established renewal periods. In the event of default, we believe the exposure is limited due to contractual protections and recourse available in the lease agreements, as well as the Qdoba Purchase Agreement, including a requirement of the landlord to mitigate damages by re-letting the properties in default, and indemnity from the Buyer. The Company has not recorded a liability for these guarantees as we believe the likelihood of making any future payments is remote. Huntington Finance Guarantees - The Company has an agreement for a financing structure with a technology partner to allow them to limit their exposure to risk, while they service the franchise-owned locations. As of September 28, 2025, and in accordance with that arrangement, the Company has funded amounts included in restricted cash of $ 2.0 million and has an additional unfunded obligation of approximately of $ 0.8 million . 17. SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands) 2025 2024 2023 Cash paid during the year for: Income tax payments $ 36,386 $ 102,512 $ 17,811 Interest payments $ 75,421 $ 76,541 $ 78,958 Non-cash investing and financing transactions: Increase in notes and accounts receivable from the sale of restaurant properties $ — $ 1,400 $ — Increase in dividends accrued or converted to common stock equivalents $ 121 $ 271 $ 285 (Decrease) increase in obligations for purchases of property and equipment $ 1,232 $ ( 2,482 ) $ 3,731 F-39 JACK IN THE BOX INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 18. SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENT INFORMATION (in thousands) September 28, 2025 September 29, 2024 Accounts and other receivables, net: Trade $ 84,602 $ 71,306 Notes receivable, current portion 3,786 2,036 Income tax receivable 215 819 Other 8,278 13,918 Allowance for doubtful accounts ( 6,570 ) ( 4,512 ) $ 90,311 $ 83,567 Other assets, net: Company-owned life insurance policies $ 135,504 $ 129,685 Franchise tenant improvement allowances 40,473 41,502 Deferred rent receivable 39,222 41,284 Notes receivable, less current portion 8,151 11,249 Other 41,859 35,286 $ 265,209 $ 259,006 Accrued liabilities: Income tax liabilities $ — $ 778 Payroll and related taxes 34,802 38,112 Legal accruals 19,607 16,220 Insurance 28,074 27,982 Sales and property taxes 26,683 26,107 Deferred rent income 393 — Advertising 4,833 4,698 Deferred franchise fees and development fees 6,367 6,674 Other 50,007 46,297 $ 170,766 $ 166,868 Other long-term liabilities: Defined benefit pension plans $ 46,320 $ 51,973 Deferred franchise and development fees 42,140 45,316 Other 78,545 56,419 $ 167,005 $ 153,708 19. SUBSEQUENT EVENTS On October 15, 2025, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with Yadav Enterprises, Inc., a California corporation (“Buyer”) and Anil Yadav (“Buyer Guarantor”) to sell to Buyer all of the issued and outstanding equity interests of Del Taco Holdings Inc., a Delaware corporation (“Del Taco”), which owns and operates the Company’s Del Taco restaurant operations, for an aggregate purchase price of $ 115.0 million in cash, subject to certain closing cash, working capital, debt and transaction expense adjustments. The Company anticipates closing the transaction in the first quarter of 2026, and will finalize the accounting upon its closing and anticipates recording a material loss on sale. F-40