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Business Combination (Tables) | 12 Months Ended
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Sep. 29, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Schedule of Franchise Acquisitions | The following summarizes the purchase consideration paid to Del Taco shareholders (in thousands, except per share data):
| Amount
Del Taco shares outstanding as of March 8, 2022 | 36,442
Del Taco RSAs subject to accelerated vesting | 805
Del Taco RSUs subject to accelerated vesting | 70
Del Taco options subject to accelerated vesting | 292
Total Del Taco shares outstanding | 37,610
Merger Consideration (per Del Taco share) | $ | 12.51 |
Total cash consideration paid to selling shareholders | $ | 470,500 |
Del Taco transaction costs paid by Jack in the Box (1) | 7,141 |
Del Taco closing indebtedness settled by Jack in the Box (2) | 115,219 |
Replacement share-based payment awards pre-combination vesting expense | 449 |
Total aggregate purchase consideration | $ | 593,309 |
_____________________ (1)Represents the portion of Del Taco merger-related transaction costs that were paid at the Closing Date by the Company. (2)Represents the closing indebtedness of Del Taco’s existing debt that was paid at the Closing Date by the Company. The final allocation of the purchase consideration was as follows (in thousands):
Total aggregate purchase consideration, net of $12,068 cash acquired |  |  |  |  | $ | 581,241 |
Assets: |  |  |  |  |
Accounts and other receivables |  |  |  |  | 4,583 |
Inventories |  |  |  |  | 3,233 |
Prepaid expenses |  |  |  |  | 2,950 |
Other current assets |  |  |  |  | 105 |
Property and equipment |  |  |  |  | 145,032 |
Operating lease right-of-use assets |  |  |  |  | 350,289 |
Intangible assets |  |  |  |  | 12,371 |
Trademarks |  |  |  |  | 283,500 |
Other assets |  |  |  |  | 5,128 |
Liabilities: |  |  |  |  |
Current maturities of long-term debt |  |  |  |  | 22 |
Current operating lease liabilities |  |  |  |  | 21,991 |
Accounts payable |  |  |  |  | 18,808 |
Accrued liabilities |  |  |  |  | 112,579 |
Long-term debt, net of current maturities |  |  |  |  | 349 |
Long-term operating lease liabilities, net of current portion |  |  |  |  | 303,488 |
Deferred tax liabilities |  |  |  |  | 75,355 |
Other long-term liabilities |  |  |  |  | 13,080 |
Net assets acquired, excluding goodwill |  |  |  |  | $ | 261,519 |
Goodwill |  |  |  |  | $ | 319,722 |
The following table provides detail of the combined acquisitions in the following periods (dollars in thousands):
| 2024 |  | 2023 |  | 2022
Restaurants acquired from Jack in the Box franchisees | — |  |  | — |  |  | 13 |
Restaurants acquired from Del Taco franchisees | 10 |  |  | — |  |  | — |
Purchase price (1) | (86) |  |  | — |  |  | (297) |
Closing and acquisition costs | (31) |  |  | — |  |  | — |
Property and equipment | 3,945 |  |  | — |  |  | 540 |
Intangible assets | 167 |  |  | — |  |  | 66 |
Operating lease right-of-use assets | 3,479 |  |  | — |  |  | — |
Operating lease liability | (4,772) |  |  | — |  |  | — |
Gain on the acquisition of franchise-operated restaurants | $ | 2,702 |  |  | $ | — |  |  | $ | 309 |
(1)The amounts related to outstanding receivables from franchisee forgiven upon acquisition
Business Combination, Goodwill Segment Allocation | The goodwill arising from the Del Taco acquisition was allocated to the Company’s reporting units as follows (in thousands):
Del Taco brand |  | $ | 230,722 |
Jack in the Box brand |  | 89,000 |
Total acquisition date goodwill |  | $ | 319,722 |
Schedule of Intangible Assets and the Useful Lives | The values allocated to intangible assets and the useful lives are as follows (in thousands):
|  | Amount |  | Weighted Average Useful Life (Years)
Trademarks |  | $ | 283,500 |  |  | Indefinite
Franchise contracts |  | 9,700 |  |  | 18
Sublease assets |  | 2,671 |  |  | 13
Estimated fair value of acquired intangible assets |  | $ | 295,871 |  |  |
Schedule of Pro Forma Information | The following unaudited pro forma combined financial information presents the Company’s results as though Del Taco and the Company had been combined as the beginning of fiscal year 2021 (in thousands):
|  | 2022 |  | 2021
Total revenue |  | $ | 1,686,160 |  |  | $ | 1,665,660 |
Net earnings |  | $ | 118,000 |  |  | $ | 133,485 |

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