Occupancy and other costs increased 30 basis points in the fourth quarter due primarily to higher utilities and repairs and maintenance costs, higher debit card fees and higher depreciation expense related to the Jack in the Box re-image program. These increases were partially offset by leverage from same-store sales increases, the benefits of refranchising Jack in the Box restaurants, and the favorable impact of recent acquisitions of Qdoba franchised restaurants.SG&A expense for the fourth quarter increased by $0.6 million and was 15.2 percent of revenues as compared to 14.6 percent in the prior year quarter. The increase in SG&A was attributable primarily to higher incentive compensation accruals, increased G&A related to Qdoba growth, and higher pension and pre-opening costs which were partially offset by lower advertising and overhead costs resulting from the company’s refranchising strategy. Mark-to-market adjustments on investments supporting the company’s non-qualified retirement plans positively impacted SG&A by $2.0 million in the fourth quarter of 2012 as compared to a negative impact of $4.5 million in the fourth quarter of 2011.
Jack In The Box Inc. Reports Fourth Quarter FY 2012 Earnings; Issues Guidance For FY 2013; Updates Long-term Goals
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