Jack In the Box Inc. · NASDAQ:JACK
Jack In the Box — Investor Day (January 2024)
117 slides from Jack In the Box's investor day presentation, Jan 24, 2024
Slide 1: Investor Day, January 24, San Diego
Wednesday, January 24 Jack in the Box Restaurant Support Center San Diego, California 1
Slide 2: Welcome + Today's Lineup
WELCOME + TODAY'S LINEUP Chris Brandon, VP of Investor Relations Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic De
Slide 3: Objectives of the day
1. Give you an opportunity to meet and hear from our talented Executive Leadership Team 2. Share our ambition and the journey to achieve our objectives 3. Communicate our long-term guidance 3
Slide 4: Tremendous opportunity to grow these two challenger brands
WE HAVE A TREMENDOUS OPPORTUNITY TO GROW THESE TWO CHALLENGER BRANDS el in the box: 2 20 Jack in the Box 9 restaurants in 23 states SINCE 2021... signed 90 development agreements for a total of 389 restaurant commitments! 70+ YEAR HISTORY JACK IN THE BOX IS 93% FRANCHISED Leader in Late Night & wo (
Slide 5: Diluted EPS
Note: *Diluted EPS; Source: Annual 10Ks 5
Slide 6: Returned $600M to shareholders
jb SCAND WE HAVERETURNED va”| $600M* TOSHAREHOLDERS. . . Touch DIVIDENDS &: SHARE REPURCHASES imc
Slide 7: AUV Growth
AUV Growth (2020-2023 CAGR) 7
Slide 8: Franchisees average restaurants
Current average Franchisees Now, the opportunity restaurants per pursued scale in exists with Del Taco, in franchisee markets where their most requested they operate category 8
Slide 9: Franchisees are partners in strategy
OUR FRANCHISEES SHARE OUR FUTURE AMBITION AND ARE PARTNERS IN STRATEGY «6
Slide 10: Pre-2020
Pre-2020: • Underinvested in technology, image, and growth • Negative net unit growth and limited restaurant pipeline • <1% digital sales • ~2% SSS average from 2013-2020 • Strained franchisee relationships 10
Slide 11: 2020-2023 Reshaping the Future
2020 – 2023 Reshaping the Future • 3x digital sales (4% to 12%) • Increased new restaurant pipeline, positive net unit growth in 2023 for the first time in 5 years • First new market openings in over a decade outperforming on sales (Salt Lake City and Louisville) • Improved franchisee relationships
Slide 12: 2024 and Beyond: Breaking Out of the Box
2024 and Beyond: Breaking Out of the Box 12
Slide 13: Long-term ambitions
$2.5M AUV $2.0M AUV 2.5% Net Unit 20% Digital Growth Sales 15% <5-Year 4-Wall Payback Franchise EBITDA 13
Slide 14: Strategic pillars and key enablers
Top-tier Average Improved Restaurant- Strengthened Development Restaurant Sales Level Economics Capabilities Key enablers for each Improved restaurant & marketing technology that enhances our data capabilities Strategy realization office & targeted centers of excellence Clearly defined capital alloc
Slide 15: New Restaurant Playbook; Why Owning Del Taco
New Restaurant & Market Why Owning Del Taco Opening Playbook Creates Shareholder Value 15
Slide 16: Proven new restaurant and market opening playbook
WE NOW HAVE A PROVEN NEW RESTAURANT AND MARKET OPENING PLAYBOOK oD MARKET SELECTION, FRANCHISE RECRUITMENT & CO-DEVELOPMENT Jack in the Box’s ‘playbook’ for new markets seems to be working
Slide 17: Playbook: new design and image
WE NOW HAVE A PROVEN NEW RESTAURANT AND MARKET OPENING PLAYBOOK a NEW C.R.A.V.E.D. DESIGN & IMAGE
Slide 18: Playbook: awareness marketing
WE NOW HAVE A PROVEN NEW RESTAURANT AND MARKET OPENING PLAYBOOK AWARENESS MARKETING & SIMPLIFICATION New Jack in the Box draws massive lines, long waits in Salt Lake City
Slide 19: Playbook: repeatable and scalable
WE NOW HAVE A PROVEN NEW RESTAURANT AND MARKET OPENING PLAYBOOK 4 4 REPEATABLE & SCALABLE Jack In the Box Is Opening 123 Restaurants In 4 New States
Slide 20: Del Taco helps achieve ambition and create shareholder value
DEL TACO WILL HELP US ACHIEVE OUR AMBITION AND CREATE SHAREHOLDER VALUE REFRANCHISING & SCALE & EFFICIENCIES DEVELOPMENT TECHNOLOGY & DIGITAL OPERATIONS & MARGIN ae IMPROVEMENT coe BETTER MEX
Slide 21: Executive leadership team
Darin Harris Brian Scott Ryan Ostrom Tony Darden Chief Executive EVP, Chief EVP, Jack Chief Mktg. SVP, Jack Chief Officer Financial Officer Officer & Del/Jack Operating Chief Digital Officer Officer Sarah McAloon Tim Linderman Doug Cook Tom Rose SVP, Del Taco Chief SVP, Chief SVP, Chief Del Taco Bra
Slide 22: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook
Slide 23: Long-term ambitions
$2.5M AUV $2.0M AUV 2.5% Net Unit 20% Digital Growth Sales 15% <5-Year 4-Wall Payback Franchise EBITDA 23
Slide 24: Better Mex
‘eTTER Mex
Slide 25: C.R.A.V.E.D.
St at.‘ rae... C ultural R elevant ~ nN 2 VW isible Ze _, {Easy =e: ir D istinctive Meinl am | reciese SO ee cas ig |
Slide 26: We're Jack in the Box
We’re Jack in the Box but we’ve never stayed in the box. From our menu items to our employees to our franchisees, we’ve always popped out in innovative, fun, unexpected ways. Unapologetically danced to the beat of our own music. Been the curly fry in a world of regular fries. Doing things others don
Slide 27: Sexiest Man Alive campaign
SEXIEST MAN ALIVE
Slide 28: Best-in-class social brand
DRIVE CULTURAL RELEVANCE BY CREATING A BEST-IN-CLASS SOCIAL BRAND
Slide 29: Brand metrics with Gen Z and Latin community
17% INCREASE 72.2 61.8 12% 24% 67% INCREASE INCREASE INCREASE 17.1 19.0 14.2 15.9 13.8 11.4 Gen Z Latin Current Like- Community Jack Minded Customer Guests YOY; 6/13/2022 – 6/12/2023 SOURCE: YouGov BrandIndex 29
Slide 30: Remodel same-store sales growth
Historically, Jack in the Box has averaged 16% same-store sales growth on remodels over the past few years 30
Slide 31: Understand, introduce and sustain the market
UNDERSTAND THE MARKET Jack in the Box Sponsored What’s better than curly fries? Free curly fries! Find one of my heads hidden throughout Louisville and you’ll get one! INTRODUCE THE BRAND Learn More Learn More Learn More Learn More SUSTAIN THE MARKET 31
Slide 32: Average brand awareness of markets
AVERAGE BRAND AVERAGE BRAND AWARENESS OF AWARENESS OF EXISTING MARKETS WHITESPACE MARKETS 2023 Jack Bera Awareness scores by state 32
Slide 33: 33
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Slide 34: Six-stage innovation process
Supported by a 6-stage innovation process with over 500+ items in various stages of the pipeline 34
Slide 35: Most exciting burger innovation in nearly a decade
OUR MOST EXCITING BURGER INNOVATION IN NEARLY A DECADE 35
Slide 36: Jack's variety allows wide choice
JACK’S VARIETY ALLOWS FOR A WIDE __ OFFERING OF ALL-DAY 7 5 kone CHOICE: oS
Slide 37: Hook and build
Hook & build ensures LTO value, while maximizing profitability via add-on & upgrade options Source: 37
Slide 38: Pricing analytics
• Competitive data • Smart recommendations • Price threshold analysis • Item pricing relationships • Pricing playbook & portal 38
Slide 39: Ambition of 20% digital sales
Our ambition is to achieve $1.0B+ 20% of topline sales $0.6B $0.5B $0.4B $0.2B 2020 2021 2022 2023 2027 Jack Del 39
Slide 40: Owned web/app initiatives
Owned Web/APP 1. Further enhance the JACK app 2. Expand digital partnerships & payments 3. Transform in-restaurant pick-up experience 4. Expand loyalty program with increased personalization & reach Q4-2022 Q4-2023 GOAL 40
Slide 41: Digital acquisition and engagement growth
ACQUISITION GROWTH +140% +73% ENGAGEMENT GROWTH +40% +32% % OF SALES 2.8% 5.9% 41
Slide 42: Delivery initiatives
1. Improve daypart-specific marketing campaigns 2. Elevate delivery driver experience in-restaurant via pick-up windows 3. Expand digital only exclusives & test catering 4. Grow this channel into a strong profit driver for franchisees 42
Slide 43: Kiosk and A.I. initiatives
1. Test & roll out in- restaurant kiosk ordering 2. Implement A.I. within key consumer touchpoints (drive- thru, ordering) 3. Continue to improve in-restaurant digital practices 43
Slide 44: Clear strategy to drive AUV and margin improvement
CLEAR STRATEGY TO DRIVE AUV AND MARGIN IMPROVEMENT
Slide 45: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook
Slide 46: Operations foundations
$2.5M AUV • Financial Fundamentals $2.0M AUV • Training Foundation 2.5% 20% Digital Net Unit • Consistent Execution Sales Growth 15% • New Market Playbook <5-Year 4-Wall Payback Franchise • Leveraging Technology EBITDA 46
Slide 47: Operations focus areas
• Financial Fundamentals • New Market Playbook • Training Foundation • Leveraging Technology • Consistent Execution 47
Slide 48: Path to 15% franchise EBITDA
Path to Achieve 15% Franchise EBITDA $100K Identified for Execution 48
Slide 49: COGS and labor management initiatives
COGS $12,000 Menu Simplification $14,300 Hydra-Rinse $8,500 Management Cheese Pump $7,500 Oil Management $10,000 Labor $14,000 3-N-1 Toaster $1,500 Drink Standardization $7,000 Management Supply Chain Synergy $15,000 Prep $8,000 Optimization Indicates initiative underway 49
Slide 50: 2019 vs 2023 results
2019 2023* * Based on Q3 rolling 4 quarters data Source: Internal Data Reported By Franchisees 50
Slide 51: Quarterly margin trend
21.4% 21.8% 20.9% 19.8% 15.8% 16.2% 15.0% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 * Based on Q3 rolling 4 quarters data Source: Internal Data Reported By Franchisees 51
Slide 52: Modernized training platform
Path to Achieve 15% Franchise EBITDA $100K Identified for Execution Modernized Training Platform Certification from 2% to 95% in 2 Years 52
Slide 53: Training focus areas
Leading with heart Eliminating friction Building business & district manager on digital guest acumen & financial routines experience fundamentals 53
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Slide 55: Guest experience review and consultative approach
Path to Achieve 15% Franchise EBITDA $100K Identified for Execution Modernized Training Platform Certification from 2% to 95% in 2 Years 3rd Party Guest Experience Review Franchise Consultative Approach
Slide 56: Drive-thru speed of service
5:17 5:17 5:13 5:09 5:06 5:03 5:02 5:01 4:57 FY22 Q1 FY22Q2 FY22 Q3 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 Source: Internal Data Collected Through Drive-Thru Sensors 5656
Slide 57: 5-second speed improvement sales uplift
6.7% 6.0% 6.0% A 5-second 4.7% 3.5% improvement in speed of service translates to ~$8K sales uplift Bottom Near Bottom Middle Near Top Top Source: Internal Data for FY22 & FY23, 2023 QSR Magazine Annual Drive-Thru Study (Conducted by Intouch Insight). Assumes an average meal cost of $10.35. 57
Slide 58: Voice of guest scores
4.3 4.0 3.9 3.9 3.6 3.5 2.9 2.6 2017 2018 2019 2020 2021 2022 2023 2024 Source: Internal Data Collected Through Voice Of Guest Program 5858
Slide 59: QSR drive-thru study
Source: 2023 QSR Magazine Annual Drive-Thru Study (Conducted by Intouch Insight) 59
Slide 60: Operations focus areas
• Financial Fundamentals • New Restaurant and Market Opening Playbook • Training Foundation • Leveraging Technology • Consistent Execution 60
Slide 61: Solid foundation to leverage growth initiatives
WITH A SOLID FOUNDATION OF EXECUTION, WE CAN NOW LEVERAGE OUR GROWTH INITIATIVES 6 NEW RESTAURANT AND MARKET OPENING PLAYBOOK @ kim
Slide 62: New restaurant and market playbook
NEW RESTAURANT AND MARKET PLAYBOOK USING SIMPLICITY TO PROVIDE THE BEST FIRST IMPRESSION
Slide 63: Leveraging technology on operations
WE ARE WELL-POSITIONED TO MAXIMIZE THE IMPACT OF TECHNOLOGY ON OPERATIONS NEM RES TAU PMID EM POP a UNG PIN OO 4 6 LEVERAGING TECHNOLOGY @ kim
Slide 64: Automation
AUTOMATION • Kitchen • Service • Management 64
Slide 65: Fryer robotics and digital build-to
Increase labor efficiency with Reduce waste & speed using just-in-time FRYER ROBOTICS prep with DIGITAL BUILD-TO 65
Slide 66: Automated drink dispenser and A.I. voice ordering
Automated drink dispenser A.I. voice ordering 66
Slide 67: Kiosk, food lockers, digital menu boards
Self-ordering kiosk Food lockers Digital menu boards 67
Slide 68: A.I. forecasting, digital checklist, vision sensors
A.I. driven Digital checklist A.I. vision sensors forecasting & scheduling 68
Slide 69: Kitchen systems
• Semi-automated drink system • Forced air holding • Digital station 69
Slide 70: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook
Slide 71: Long-term ambitions
$2.5M AUV $2.0M AUV 2.5% Net Unit 20% Digital Growth Sales 15% <5-Year 4-Wall Payback Franchise EBITDA 71
Slide 72: Initial growth pillars
WE HAVE IDENTIFIED 4 INITIAL GROWTH PILLARS CR.A.V.E.D. VALUE AND MENU OPERATIONS MARKETING PREMIUM OPTIMIZATION EXCELLENCE STRATEGY (23 cam
Slide 73: Key achievements and initiatives in progress
Key achievements to date: • Media synergies: ~$8 Million • Refined customer targets Initiatives in progress: • Clarifying brand positioning • Product strategy update 73
Slide 74: Customer satisfaction on value
Average customer satisfaction in terms of value at QSR brands, ranked on a scale of 1-5 “Del Taco is so reasonable. I feel like I get more bang for my buck there than at other fast-food restaurants” Source: Del Taco Customer Survey (full sample N = 2,061). - Del Taco customer 74
Slide 75: Bundled value and hook and build
FURTHER OPPORTUNITIES TO OFFER BUNDLED VALUE & DEPLOY HOOK & BUILD BUNDLED VALUE HOOK WITH LOW PRICE ted" BUILD CHECK AT DRIVE-THRU MENU STUFFED QUESE=aILLA
Slide 76: Premium promotions and premium taco opportunity
Proven premium promotions drove Opportunity to create ~7% sales lift and ~1% traffic increase premium tacos above $4 Competitors offer premium tacos >$4 76
Slide 77: Taco and burrito rankings
Source: Technomic; Taco & Burrito ranking is amongst Mexican QSRs 77
Slide 78: Getting smarter, simpler with our menu
GETTING SMARTER, SIMPLER WITH OUR MENU Othe Det Teco hoo Qos cnet tae ~ Chicken Cheddar 5 Suede es ‘at —— Osisry Chicken at ” Beer Battered re, th OE ‘Crispy Fish Taco bes bce. \ Care Asada Steak ae Ehecdar Suesedie sera Stuffed Quesadilla Taco FJ Qroades aueso he ee: ) = - moss QDEple Combo Combe l
Slide 79: Menu simplification goals
1) Drive stronger sales & margins 2) Improve speed to increase labor efficiency 3) Better align with our strengths of freshness & value 4) Easier for the guest to read 79
Slide 80: Line of sight to 200-300 bps improvement
Line of sight to Focus on labor efficiencies, 200-300 bps process efficiencies, and improvement in both digital improvements RLM & franchise EBITDA 80
Slide 81: Initial growth pillars
WE'VE IDENTIFIED 4 INITIAL GROWTH PILLARS CR.A.V.E.D. VALUE AND MENU OPERATIONS MARKETING PREMIUM OPTIMIZATION EXCELLENCE STRATEGY (23 cam
Slide 82: Try the Smashed Jack
It's time to try the Smashed Jack (…and some other Jack and Del delights!) 82
Slide 83: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook
Slide 84: Long-term ambitions
$2.5M AUV $2.0M AUV 2.5% 20% Digital Net Unit Sales Growth 15% <5-Year 4-Wall Payback Franchise EBITDA 84
Slide 85: Restaurant footprint and whitespace
WA ND JIB: 147 DT: 6 MT MN ME OR SD WI JIB: 41 DT: 9 ID WY MI NY VT NH Jack in the Box: 2,200 restaurants today JIB: 33 DT: 12 Whitespace of ~5,750 restaurants DT: 10 IA MA NE RI OH PA NV IL IN CT UT JIB: 2 DT: 2 JIB: 79 JIB: 11 JIB: 3 NJ DT: 45 JIB: 6 DT: 35 CO JIB: 18 DT: 21 KS JIB: 5 MO KY WV DE
Slide 86: Restaurant footprint and coming-soon states
WA ND JIB: 147 DT: 6 MT MN ME OR SD WI JIB: 41 DT: 9 ID WY MI NY VT NH Jack in the Box: 2,200 restaurants today JIB: 33 DT: 12 Whitespace of ~5,750 restaurants DT: 10 IA MA NE RI OH PA NV IL IN CT UT JIB: 2 DT: 2 JIB: 79 JIB: 11 JIB: 3 NJ DT: 45 JIB: 6 DT: 35 CO JIB: 18 DT: 21 KS JIB: 5 MO KY WV DE
Slide 87: Fortressing, wagon wheel, white space
Fortressing Wagon Wheel White Space Building out & supporting Supporting adjacent Establishing new existing markets market penetration regional hubs Markets include: Markets include: Markets include: California & Texas Utah, Arkansas & Wyoming Kentucky & Florida 87
Slide 88: Development agreement pipeline growth
+18x +3x Development agreement pipeline Development agreement pipeline Pre-2021, our pipeline of DAs had no concrete timeline for opening, while today we have a combined pipeline of ~370 DAs that are scheduled to open in 2024-2027 88
Slide 89: Site approval pipeline
+5x +2x Site approval pipeline Site approval pipeline Current pipeline has 130 real estate-approved commitments scheduled to open by 2027 and currently in planning, permitting or construction phase 89
Slide 90: Estimated gross openings
Estimated Gross Openings 90-120 70-100 55-85 35-55 FY24 FY25 FY26 FY27 90
Slide 91: Fill funnel, improve process, reduce build cost
Fill Franchisee Improve, Enhance Reduce New Sales & Site Funnel and Accelerate the Build Cost Development Process 91
Slide 92: Development incentives and prototypes
Offer a compelling development Proactive site selection incentive program and permitting process Codified and standardized Value engineered construction “best practices” 3 restaurant prototypes 92
Slide 93: Restaurant prototypes
Drive-Thru / Walk-Up Only 2,300 sq. ft. Restaurant 2,000 sq. ft. Restaurant 93
Slide 94: Restaurant prototypes
Drive-Thru / Walk-Up Only 2,300 sq. ft. Restaurant 2,000 sq. ft. Restaurant 94
Slide 95: Target development timelines
REC Construction Restaurant approval ground-break opening Current timeline ~21 Months ~8 Months Target timeline 16 Months 5 Months Current timeline ~13 Months ~8 Months Target timeline 12 Months 5 Months 95
Slide 96: 2023 new market openings sustained weekly AUVs
2023 new market openings have sustained weekly AUVs substantially higher than our best performing restaurants Source: JACK weekly sales data as of 11/17/23 96
Slide 97: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook
Slide 98: Long-term ambitions
$2.5M AUV $2.0M AUV 2.5% 20% Digital Net Unit Sales Growth 15% <5-Year 4-Wall Payback Franchise EBITDA 98
Slide 99: Stabilize, Modernize, Innovate
Stabilize Modernize Innovate 2021-2023 2023-2025 2025+ Uninterrupted Rebuild the Rapid Operations Foundation Innovation 99
Slide 100: New digital and POS systems
MODERNIZATION WILL BE ENABLED BY NEW DIGITAL met AND POS SYSTEMS FIND YOUR FAVES EXPLORE OUR MENU 2 Be NEW APP NEW POS
Slide 101: Owned digital ecosystem
Developing owned digital ecosystem Driving enhanced relationship & customer data gathering 101
Slide 102: Cloud-based POS platform
INNOVATIONS BECOME A REALITY WITH OUR NEW CLOUD-BASED POS PLATFORM = ==] Ss Nick Woecrecs
Slide 103: Technology roadmap 2024-2027
Consolidated Relaunch new New POS Consolidated Full company ERP finance JACK app completed HR and supply system function at Jack chain consolidation & functions integration 2024 2025 2026 2027 Unified digital Fully scaled POS Optimized restaurant food & ecosystem across for both brands labor control
Slide 104: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook
Slide 105: Right Strategy, Right Team
Right Strategy, Initiatives to Right Team Achieve Ambitions $2.5M AUV More Operations $2.0M AUV C.R.A.V.E.D. Unlocking Value 2.5% Net Unit 20% Digital Growth Sales Tech Roadmap in Del Taco Primed for Place Growth New Unit Growth Investing in our 15% Gaining Traction Growth <5-Year 4-Wall Payback Fra
Slide 106: FY24 guidance and 2027 targets
KEY GROWTH DRIVERS FY24 Guidance 2027 Target JIB Low to Mid Same-Store Sales Growth 2% to 3% DT Single Digits JIB 21-23% 23-25% Restaurant Level Margin DT 14-16% 18-20% G&A % of System-Wide Sales 2.3% to 2.5% 2.2% to 2.3% Net New Unit Growth Positive 2.0-2.5% Digital Sales Mix ~ 20% 106
Slide 107: Del Taco refranchising and synergies
Refranchised 111 Del Tacos in FY23 FY 23 FY24 109 development commitments $ in Millions Actual Plan Restaurant Level Margin $2 $8 Share repurchases offset dilution G&A Savings $7 $12 Driving towards EBITDA Synergies Impact $8 $20 asset light model EOY Run Rate EBITDA Impact $13 $20+ % of franchised
Slide 108: Capital allocation priorities
Over the Last 4 Years: ~$500M Share repurchases ~$140M Dividends (current yield ~2%) Capital allocation priorities $237 1. Investing for growth 2. Maintaining an appropriate debt level $183 3. Returning excess cash to shareholders $200 $126 $156 Strong and consistent cash flow $62 $90 allows us to d
Slide 109: Debt facility is well-priced and flexible
Debt facility is well-priced and flexible Debt Maturity Year • $1.8B of securitized notes – average rate of 4.2% $534 $534 • Staggered maturities through 2032 $439 • >50% 2029 or later • $150M VFN and $50M LOC (both undrawn) $268 Target leverage ratio: 4.0 – 5.0x • Expected to be at ~5.0x through FY
Slide 110: Strong development pipeline
Estimated Openings 90-120 Strong development pipeline 70-100 Jack and Del Taco offer: 55-85 o Development whitespace 35-50 o Differentiated brands o Growing AUV and 4-Wall EBITDA FY24 FY25 FY26 FY27 Projected Net Unit Growth Positive 1.0 - 1.5% 1.5 - 2.0% > 2.0% 110
Slide 111: Capital investment focus
$120 $110-120 $110-120 Investments focused on: $20 $15-20 $100 New restaurant growth $15 $15-20 $79 Jack/Del remodels $80 $15 $5-10 Modern tech and digital systems $60 $38 Operational efficiency $35-40 $35 $40 $3 Innovation $9 $20 $20 $30 $30-35 With future opportunity to refranchise new company $9
Slide 112: Tech investments mix
Tech investments evolving mix towards Digital and consumer engagement Efficient in-restaurant operations Innovation FY24 FY27 Digital and MarTech 30% 23% 45% 37% Restaurant Systems and Innovation Corporate Systems and 40% POS 25% Over 75% targeted towards digital & restaurants ops Estimated % of Ann
Slide 113: Company-built restaurants and refranchising
Seed new • Validating success in new ~$30M/yr. invested in new restaurants markets to markets prove viability • Partnering with franchisees creates a natural refranchising path • Demonstrates corporate Refranchise Partner with commitment to development company-built franchisees to restaurants effici
Slide 114: Company restaurant builds vs share buybacks
Invest in Building Company Restaurants Share Repurchases Total Investment $30M Total Investment $30M Restaurants Built 15 Shares Repurchased ~0.4M EBITDA Contribution ~$6M EV Increase (ROI) ~$60-80M Potential Share Price Increase ~4.0-5.0% Potential Share Price Increase ~2.0% Company restaurant buil
Slide 115: Target franchisee economics
Tangible Opportunities to Enhance Returns • Reducing build cost with modern concepts • Many market development opportunities • Material AUV and margin upside • Development timeline shortening Target Franchisee Economics $2.2-2.5M $350-400K $1.9-2.1M <5 years $1.9-2.0M $275-325K $1.8-2.0M <5 years No
Slide 116: Right Strategy, Right Team
Right Strategy, Initiatives to Right Team Achieve Ambitions $2.5M AUV More Operations $2.0M AUV C.R.A.V.E.D. Unlocking Value 2.5% Net Unit 20% Digital Growth Sales Tech Roadmap in Del Taco Primed for Place Growth New Unit Growth Balanced Capital 15% Gaining Traction Allocation Plan <5-Year 4-Wall Pa
Slide 117: Agenda
AGENDA Darin Harris - Introduction and State of the Business Ryan Ostrom - The Continuation of C.R.A.V.E.D. Tony Darden - Evolving Operations Tom Rose & Sarah McAloon - Achieving Better Mex Brunch Break featuring Smashed Jack & The Classic Del Taco! Tim Linderman - Executing on Unit Growth Doug Cook