XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.25.2

GOODWILL AND INTANGIBLE ASSETS, NET | 9 Months Ended
--- | ---
Jul. 06, 2025
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET The changes in the carrying amount of goodwill during the year-to-date period ended July 6, 2025 was as follows (in thousands):
| Jack in the Box |  | Del Taco |  | Total
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 |
Impairment of goodwill | — |  |  | (31,656) |  |  | (31,656) |
Acquisition of Del Taco company-operated restaurants | — |  |  | 6,326 |  |  | 6,326 |
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 July 6, 2025 | $ | 136,026 |  |  | $ | — |  |  | $ | 136,026 |
During the third quarter of the prior year, the Company had 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 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 the third quarter of 2024. During the second quarter of 2025, the Company had 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 in 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 future revenues, 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. During the second quarter of 2025, the Company also performed a quantitative analysis over its indefinte-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. During the third quarter of 2025, the Company performed a qualitative analysis over its indefinte-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 July 6, 2025 was as follows (in thousands):
Balance at September 29, 2024 | $ | 283,500 |
Impairment of trademark | (177,900) |
Balance at July 6, 2025 | $ | 105,600 |
The net carrying amounts of definite-lived intangible assets are as follows (in thousands):
| July 6, 2025 |  | September 29, 2024
| Gross Amount |  | Accumulated Amortization |  | Net Amount |  | Gross Amount |  | Accumulated Amortization |  | Net Amount
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |
Sublease assets | $ | 2,671 |  |  | $ | (805) |  |  | $ | 1,866 |  |  | $ | 2,671 |  |  | $ | (620) |  |  | $ | 2,051 |
Franchise contracts | 9,700 |  |  | (1,803) |  |  | 7,897 |  |  | 9,700 |  |  | (1,389) |  |  | 8,311 |
Reacquired franchise rights | 629 |  |  | (324) |  |  | 305 |  |  | 464 |  |  | (311) |  |  | 153 |
| $ | 13,000 |  |  | $ | (2,932) |  |  | $ | 10,068 |  |  | $ | 12,835 |  |  | $ | (2,320) |  |  | $ | 10,515 |
The following table summarizes, as of July 6, 2025, the estimated amortization expense for each of the next five fiscal years and thereafter (in thousands):
Remainder of 2025 | $ | 184 |
2026 | 797 |
2027 | 812 |
2028 | 761 |
2029 | 699 |
Thereafter | 6,815 |
| $ | 10,068 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration