What Jack in the Box Inc. told the SEC could break it.

Jack in the Box is geographically concentrated: approximately 70% of its systemwide restaurants are located in California and Texas, so economic conditions, state and local laws (including minimum-wage and labor regulation), government regulations, natural disasters or weather events affecting those two states would impact its results more than similar events elsewhere, exacerbating its exposure to region-specific shocks.

“approximately 70% of our systemwide restaurants are located in the states of California and Texas. Economic conditions, state and local laws, or government regulations affecting those states may therefore more greatly impact our results than would similar occurrences in other locations.”

Jack in the Box's margins are exposed to food-commodity prices: its primary commodities are beef, poultry, pork, cheese and produce (and taco meat/cheese/produce at Del Taco), and commodity costs rose approximately 4.2% in fiscal 2025 with the greatest impacts in beef, beverages, poultry and eggs; although it contracts to minimize price/supply fluctuations, sustained commodity inflation that cannot be fully offset by menu pricing compresses its restaurant-level margins.

“Commodity costs increased in the current fiscal year by approximately 4.2%. The greatest impacts were seen in beef, beverages, poultry, and eggs.”

Jack in the Box is exposed to trade and food-safety regulation: some of its produce, meats and restaurant supplies are sourced from outside the United States, so new or increased import duties, tariffs or taxes (or other U.S. trade/tax policy changes) could raise its food and commodity costs; in addition, its restaurants are subject to FDA Food Code-based food-safety requirements and extensive federal, state and local licensing and regulation (health, sanitation, safety, fire, zoning, labor, consumer protection), so regulatory or tariff changes could increase costs and operational complexity.

“Additionally, some of our produce, meats, and restaurant supplies are sourced from outside the United States. Any new or increased import duties, tariffs, or taxes, or other changes in U.S. trade or tax policy, could result in higher food and commodity costs that would adversely impact our financial results.”

Jack in the Box relies on a single primary food-service distributor that provides substantially all of the food, packaging and supplies for both its Jack in the Box and Del Taco restaurants under current contracts running through August 2027; a disruption, financial distress, performance failure or non-renewal at this single distributor would interrupt deliveries to its company and franchised restaurants system-wide, and although most essential products are available from alternative suppliers, a distribution failure could materially affect operations.

“At both brands, we contract with a single primary food service distributor for substantially all of our food, packaging and supplies. Under the current contracts, this distributor will provide distribution services to both our Jack in the Box and Del Taco restaurants through August 2027.”