Core Insights - Jack In The Box reported a revenue of $326.19 million for the quarter ended September 2025, reflecting a year-over-year decline of 6.6% and an EPS of $0.30 compared to $1.16 a year ago, with a revenue surprise of +1.47% over the Zacks Consensus Estimate [1] - The consensus EPS estimate was $0.46, resulting in an EPS surprise of -34.78% [1] - The stock has returned -21.5% over the past month, underperforming the Zacks S&P 500 composite's -0.6% change, and currently holds a Zacks Rank 4 (Sell) [3] Revenue and Sales Performance - Same-store sales for Jack In The Box decreased by 7.4%, worse than the estimated decline of 5.8% [4] - Company restaurant sales revenue was $142.52 million, exceeding the average estimate of $136.31 million but showing a year-over-year decline of 5.9% [4] - Franchise revenues, including rental, royalties, and contributions, totaled $183.68 million, slightly below the estimated $185.39 million, marking a year-over-year decline of 7.2% [4] Franchise Metrics - Total restaurant counts for Jack In The Box remained at 2,136, matching analyst estimates [4] - Del Taco's same-store sales decreased by 3.9%, compared to the estimated decline of 2.1% [4] - Del Taco's total restaurant counts were 576, below the estimated 586 [4]

分组1 - Jack In The Box reported quarterly earnings of $0.3 per share, missing the Zacks Consensus Estimate of $0.46 per share, and down from $1.16 per share a year ago, representing an earnings surprise of -34.78% [1] - The company posted revenues of $326.19 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.47%, but down from $349.29 million year-over-year [2] - Jack In The Box shares have lost about 65.8% since the beginning of the year, while the S&P 500 has gained 12.5% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.56 on revenues of $446.74 million, and for the current fiscal year, it is $4.61 on revenues of $1.45 billion [7] - The Zacks Industry Rank indicates that the Retail - Restaurants sector is currently in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [8]

Financial Data and Key Metrics Changes - For Q4 2025, same-store sales for Jack in the Box declined 7.4%, with franchise same-store sales down 7.6% and company-owned same-store sales down 5.3% [19] - Jack restaurant level margin decreased by 240 basis points year-over-year to 16.1%, driven by sales deleverage, commodity inflation of 6.9%, and elevated labor costs [20] - Consolidated adjusted EBITDA for Q4 was $45.6 million, down from $65.5 million in the prior year, primarily due to lower same-store sales [26] - GAAP diluted earnings per share for Q4 was $0.30, compared to $1.12 in the prior year [27] Business Line Data and Key Metrics Changes - Jack in the Box opened 15 restaurants and closed 47 in Q4, ending the year with 2,136 restaurants [19] - Del Taco's system same-store sales declined 3.9%, with company-owned same-store sales down 3.1% and franchise same-store sales down 4.2% [24] - Del Taco restaurant level margin decreased to 6.8% from 9.3% in the prior year, primarily due to transaction declines and inflationary increases in commodities [24] Market Data and Key Metrics Changes - The Chicago market had a -130 basis point drag on overall company restaurant level margin due to elevated labor costs from new restaurant openings [21] - Franchise level margin for Jack in the Box was $62.6 million, or 38.9% of franchise revenues, compared to $70.9 million, or 40.4% a year ago [22] Company Strategy and Development Direction - The company is focused on the "Jack on Track" plan, which aims to simplify the business and strengthen the Jack in the Box brand [8] - The divestiture of Del Taco is a key step to refocus on the Jack in the Box brand and improve operational performance [8] - The company plans to enhance operational excellence and improve food quality, with a focus on consistency across operations [12] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be a rebuilding year, with same-store sales returning to positive as operational improvements are implemented [16] - The company anticipates challenges in the first quarter of 2026 but expects improvements in the second quarter, coinciding with the 75th anniversary celebrations [39] - Management has not built in significant macroeconomic tailwinds into their guidance, expecting conditions to remain flat [60] Other Important Information - The company ended the year with total debt of $1.7 billion and a net debt to adjusted EBITDA leverage ratio of six times [28] - Capital expenditures for Q4 were $17.9 million, with cash flows from operations for the quarter at $33.7 million [28] Q&A Session Summary Question: What are the main drivers of improvement in same-store sales for 2026? - Management expects improvements to be driven by a combination of promotional strategies, operational enhancements, and softer comparisons in the second half of the year [39][40] Question: What is the assumption in the current EBITDA guidance regarding real estate sales and closures? - Management confirmed that the guidance includes block closures and anticipates $50 million to $70 million in real estate sales [41][42] Question: How is franchisee sentiment regarding the current competitive environment? - Franchisees are under pressure but remain supportive of the brand, with ongoing conversations to drive business forward [66][70] Question: What are the expectations for G&A expenses in the second half of 2026? - G&A is expected to decrease to approximately 2.3%-2.4% of system-wide sales in the second half as the company right-sizes the business [62] Question: How are value scores trending, and what is the strategy moving forward? - Value scores have improved slightly, and the company aims to maintain consistent value offerings across its menu [84][92]

Financial Data and Key Metrics Changes - For Q4 2025, same-store sales for Jack in the Box declined 7.4%, with franchise same-store sales down 7.6% and company-owned same-store sales down 5.3% [19] - Jack restaurant level margin decreased by 240 basis points to 16.1% due to sales deleverage, commodity inflation of 6.9%, and elevated labor costs [20] - Consolidated adjusted EBITDA was $45.6 million, down from $65.5 million in the prior year, primarily due to lower same-store sales [26] Business Line Data and Key Metrics Changes - Jack in the Box had 15 restaurant openings and 47 closures in Q4, ending the year with 2,136 restaurants [19] - Del Taco's system same-store sales declined 3.9%, with company-owned same-store sales down 3.1% and franchise same-store sales down 4.2% [24] - Del Taco restaurant level margin decreased to 6.8% from 9.3% in the prior year, driven by transaction declines and inflationary increases in commodities [24] Market Data and Key Metrics Changes - The Chicago market had a negative 130 basis point drag on overall company restaurant level margin due to elevated labor costs from new restaurant openings [21] - Franchise level margin for Jack in the Box was $62.6 million, or 38.9% of franchise revenues, compared to $70.9 million, or 40.4% a year ago [22] Company Strategy and Development Direction - The company is focused on the "Jack on Track" plan, which includes simplifying the business and divesting Del Taco to strengthen the Jack in the Box brand [8][9] - A comprehensive reimage program is in progress, with a focus on modernizing restaurants and enhancing customer experience [15][99] - The company aims to achieve same-store sales growth and improve operational efficiency while managing costs effectively [16][12] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be a rebuilding year, with same-store sales returning to positive as operational improvements are implemented [16] - The company anticipates challenges in the first quarter due to comparisons with stronger results from the previous year and external factors like government shutdowns [40][48] - Management is optimistic about the long-term potential, aiming for a stronger, more disciplined brand by the end of 2026 [18] Other Important Information - The company plans to pay down $263 million in debt by retiring the August 2026 tranche of its securitization with proceeds from the Del Taco divestiture and real estate sales [34] - Capital expenditures for Q4 were $17.9 million, with cash flows from operations for the quarter at $33.7 million [28] Q&A Session Summary Question: What are the main drivers of same-store sales improvement in 2026? - Management expects the first quarter to be soft but anticipates improvements in the second quarter due to marketing initiatives and anniversary promotions [39] Question: What is the assumption in the current EBITDA guidance regarding real estate sales and closures? - Management confirmed that block closures are included in the guidance, with expectations of 60-100 closures and $50 million to $70 million in real estate sales [41][42] Question: How is franchisee sentiment regarding the brand and investment in the Jack on Track plan? - Franchisees are under pressure but remain supportive, with a willingness to invest in the brand as conditions improve [66][69] Question: What are the expectations for top and bottom line growth in the long term? - Management indicated that long-term guidance will be provided once the company is further along in the Jack on Track program, with expectations for moderate growth in the future [73] Question: What is the current status of the reimage program? - The company has a reimage plan in place and is focused on ensuring that significant contributions are made to enhance restaurant appearances [96][99]

Financial Data and Key Metrics Changes - In Q4 2025, Jack in the Box reported a system same-store sales decline of 7.4%, with franchise same-store sales down 7.6% and company-owned same-store sales down 5.3% [17] - The overall sales trends improved by approximately 300 basis points throughout the quarter, despite ongoing pressure on check sizes due to previous price increases [9][10] - Adjusted EBITDA for Q4 was $45.6 million, down from $65.5 million in the prior year, primarily due to lower same-store sales [24] Business Line Data and Key Metrics Changes - Jack in the Box opened 15 restaurants and closed 47 in Q4, ending the year with 2,136 locations [17] - Del Taco experienced a system same-store sales decline of 3.9%, with company-owned same-store sales down 3.1% and franchise same-store sales down 4.2% [21] - Del Taco's restaurant level margin decreased to 6.8% from 9.3% in the prior year, driven by transaction declines and inflationary increases in commodities [22] Market Data and Key Metrics Changes - The Chicago market had a negative impact on overall company restaurant level margin, contributing a drag of 130 basis points due to elevated labor costs from rapid new restaurant openings [19] - Franchise level margin for Jack in the Box was $62.6 million, or 38.9% of franchise revenues, compared to $70.9 million, or 40.4% a year ago [20] Company Strategy and Development Direction - The company is focused on the "Jack on Track" plan, which includes divesting Del Taco to concentrate on strengthening the Jack in the Box brand [6][14] - A comprehensive reimage program is in development, with a focus on modernizing restaurants and enhancing customer experience [13][62] - The company aims to achieve positive same-store sales in 2026 through operational improvements and a barbell promotional strategy [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2025 was a challenging year but expressed confidence in the company's ability to restore momentum and drive long-term shareholder value [15] - The outlook for 2026 includes expectations for same-store sales to return to positive, completion of the Del Taco divestiture, and significant debt reduction [14][29] - Management noted that the competitive landscape is more intense, and consumer spending is cautious, necessitating a focus on value perception and operational excellence [10][11] Other Important Information - The company ended the year with total debt of $1.7 billion and a net debt to adjusted EBITDA leverage ratio of six times [26] - Capital expenditures for Q4 were $17.9 million, with cash flows from operations for the quarter at $33.7 million [26] Q&A Session Summary Question: What are the main drivers of improvement in same-store sales for 2026? - Management expects the first quarter to be soft but anticipates improvements in the second quarter due to promotional activities and the 75th anniversary celebrations [32] Question: What is the assumption in the current EBITDA guidance? - The guidance includes block closures and real estate sales, with expectations of $50 million to $70 million in real estate sales built into the guidance [34][35] Question: How is franchisee sentiment amid competitive pressures? - Franchisees are focused on driving sales and are willing to support the brand, although profitability pressures exist [44][46] Question: What are the expectations for G&A expenses in 2026? - G&A is expected to be elevated in the first half of the year but should improve in the second half as the company restructures following the Del Taco sale [41]

Core Insights - Jack In The Box, Inc. reported fourth-quarter earnings that missed analyst expectations, with earnings of 30 cents per share compared to the estimated 45 cents per share [2][3] - The company's quarterly revenue was $326.19 million, surpassing the analyst estimate of $319.65 million, but down from $349.29 million in the same period last year [2] Financial Performance - Same-store sales decreased by 7.4% [5] - Systemwide sales for the fourth quarter decreased by 7.2% [5] - Restaurant-Level Margin was 16.1%, down from 18.5% in the prior year quarter [5] - Franchise-Level Margin was 38.9%, down from 40.4% a year ago [5] Operational Changes - The company opened 15 new restaurants and closed 47 restaurants during the fourth quarter [5]

Restaurant Operations - As of September 28, 2025, Jack in the Box operated and franchised 2,136 restaurants, with 93% (1,986) being franchised[14]. - Del Taco served approximately 2 million guests each week and operated 576 restaurants, with 77% (444) being franchised as of September 28, 2025[16]. - The total number of Jack in the Box restaurants is 2,136, with 150 company-operated and 1,986 franchised[136]. - The total number of Del Taco restaurants is 576, with 132 company-operated and 444 franchised[136]. - The Jack in the Box restaurants are approximately 1,372 square feet and support a Y-Lane drive-thru configuration[23]. - The Del Taco restaurants are approximately 1,152 square feet and also support a Y-Lane drive-thru configuration[24]. - As of September 28, 2025, the Company had a total of 5,046 employees, with 4,440 being restaurant employees[39]. - Approximately 84% of restaurant employees were part-time as of the end of fiscal 2025[39]. Franchise Agreements - The franchise agreement for Jack in the Box includes an initial franchise fee of $50,000 per restaurant and royalty payments of 5.0% of gross sales[18]. - The franchise agreement for Del Taco includes an initial franchise fee of $35,000 per restaurant and royalty payments of 5.0% and 4.0% for marketing, respectively[19]. - Approximately 93% of Jack in the Box restaurants and 77% of Del Taco restaurants are franchised, indicating a high reliance on franchisee performance for revenue generation[84]. Financial Performance - The Company reported that same-store sales, system restaurant sales, and average unit volumes (AUVs) are key performance metrics used to assess profitability[161]. - Jack in the Box company-operated restaurant sales decreased by $10.3 million, or 2.4%, in fiscal 2025 compared to fiscal 2024, primarily due to a decrease in transactions[167]. - Del Taco company-operated restaurant sales decreased by $71.4 million, or 25.3%, in fiscal 2025 compared to fiscal 2024, driven by a decrease in the average number of restaurants and transactions[177]. - Same-store sales at Jack in the Box company-operated restaurants decreased by 3.7% in fiscal 2025, with transactions down by 5.7% and average check up by 2.0%[168]. - Same-store sales at Del Taco company-operated restaurants decreased by 2.4% in fiscal 2025, with transactions down by 6.9% and average check up by 4.5%[178]. - Franchise rental revenues for Jack in the Box decreased by $14.5 million, or 4.2%, in fiscal 2025, primarily due to lower sales[174]. - Franchise royalties for Jack in the Box decreased by $7.1 million, or 3.4%, in fiscal 2025, driven by lower sales[175]. - Franchise rental revenues for Del Taco increased by $7.7 million, or 27.3%, in fiscal 2025, primarily due to higher rental income from new subleases[181]. - Franchise occupancy expenses for Del Taco increased by $7.2 million, or 25.9%, in fiscal 2025, primarily due to higher operating lease costs[183]. Strategic Initiatives - The Company plans to accelerate cash flow by discontinuing dividends and reallocating funds to initiatives that drive sales growth, particularly in digital and technology[25]. - The Company announced a plan to explore strategic alternatives for the Del Taco brand, leading to a Stock Purchase Agreement to sell Del Taco for an aggregate purchase price of $115 million in cash[163]. - The Company entered into a Stock Purchase Agreement to sell Del Taco for an aggregate purchase price of $115 million in cash[13]. Employee and Training Programs - The company invests in employee training and development to reduce turnover and improve service quality[63]. - The company offers a comprehensive benefits package including medical, dental, vision insurance, and a 401(k) plan with company matching contributions[42]. Competition and Market Risks - The company faces significant competition in the food service industry, particularly from established national and regional chains, as well as local businesses[68]. - The company is subject to risks related to macroeconomic conditions, including changes in consumer confidence and discretionary spending[57]. - Changes in customer preferences related to dietary concerns could lead to a decline in sales and royalties from franchisees[71]. - The effectiveness of marketing and promotional programs is critical, as competitors with greater financial resources may impact the company's market position[75][76]. Regulatory and Compliance Risks - The company is committed to maintaining compliance with various federal, state, and local laws governing food safety and employee rights[53]. - The company is subject to various consumer protection and privacy laws, which could lead to material legal costs[94]. - Compliance with the Americans with Disabilities Act and similar state laws may incur significant expenses related to modifications and legal claims[93]. - The company is subject to increasing legal complexity and potential litigation costs that could materially affect financial results[107]. - The company is subject to financial and regulatory risks associated with owned and leased properties, which could adversely affect operational performance[85]. Financial Condition and Debt - The Company has approximately $1.7 billion of outstanding debt as of September 28, 2025[121]. - The Company declared total dividends of $16.7 million in 2025, a decrease from $34.2 million in 2024, and has discontinued its dividend[210]. - As of September 28, 2025, the Company had $81.8 million in cash and restricted cash, with available borrowings of $96.8 million under its credit facilities[203]. Cybersecurity and Technology - The company relies heavily on information technology and digital service providers for operations, including point-of-sale processing and order management[118]. - The company maintains a comprehensive information security program to manage cybersecurity threats[126]. - The company engages third parties to assess and remediate material risks from cybersecurity threats[133]. - The Audit Committee oversees the company's cybersecurity and data privacy risk management[134]. - The company is subject to risks associated with increasing dependence on digital commerce platforms and technologies[117]. Economic and Commodity Risks - The company is subject to volatility in food and commodity costs, which can affect profit margins and may require menu modifications[58]. - Increased labor costs due to minimum wage requirements and other regulatory changes could adversely impact the company's operating costs[64]. - The company relies on frequent deliveries of fresh produce and other food products, making it vulnerable to supply chain disruptions[62]. - Severe weather conditions and natural disasters could result in property damage and lost restaurant sales, particularly affecting locations in California and Texas[77][78]. Financial Reporting and Internal Controls - Effective internal controls are necessary to ensure accurate financial reporting; weaknesses could harm investor confidence and stock value[108]. - Changes in tax laws could adversely affect the company's income tax expenses and overall financial condition[109].

Sales Performance - Jack in the Box same-store sales decreased by 7.4% in Q4 2025 and 4.2% for FY 2025, while Del Taco same-store sales decreased by 3.9% in Q4 2025 and 3.7% for FY 2025[1][8] - Company restaurant sales for the 12 weeks ended September 28, 2025, were $142,515, a decrease of 5.9% from $151,417 for the same period in 2024[30] - Company-operated restaurant sales for the 12 weeks ended September 28, 2025, were $93,753,000, a decrease from $95,718,000 for the same period in 2024, representing a decline of 2.0%[41] - Franchised restaurant sales for the 12 weeks ended September 28, 2025, were $830,560,000, down from $899,882,000 in 2024, indicating a decrease of 7.7%[41] - Systemwide sales for the 12 weeks ended September 28, 2025, totaled $924,313,000, compared to $995,600,000 in 2024, reflecting a decline of 7.2%[41] Financial Performance - Diluted earnings per share for Q4 2025 was $0.30, down from $1.12 in the prior year quarter, and operating EPS was also $0.30 compared to $1.16 in the prior year[16] - Adjusted EBITDA for Q4 2025 was $45.6 million, down from $65.5 million in the prior year quarter[16] - Net earnings for the 52 weeks ended September 28, 2025, were a loss of $80,719 compared to a loss of $36,695 for the same period in 2024[30] - The company reported a basic net loss per share of $4.24 for the 52 weeks ended September 28, 2025, compared to a loss of $1.87 in 2024[30] - The net earnings (loss) for the 52 weeks ended September 28, 2025, was $(80,719), a significant decline from $(36,695) in 2024, indicating a worsening financial position[59] Margins - Restaurant-Level Margin for Jack in the Box was 16.1% in Q4 2025, down from 18.5% in the prior year, influenced by market entry inefficiencies and inflationary commodity costs[3][4] - Franchise-Level Margin for Jack in the Box was 38.9% in Q4 2025, a decrease from 40.4% a year ago, primarily due to lower franchise same-store sales[5] - Del Taco's Restaurant-Level Margin was 6.8% in Q4 2025, down from 9.3% in the prior year, driven by transaction declines and inflationary commodity increases[9] - The Restaurant-Level Margin for Jack in the Box was 16.1% for the 12 weeks ended September 28, 2025, down from 18.5% in the same period of 2024[64][65] - The Franchise-Level Margin for Jack in the Box was 38.9% for the 12 weeks ended September 28, 2025, compared to 40.4% in the same period of 2024, indicating a decline in profitability[68] Assets and Liabilities - Total current assets increased to $220,372 as of September 28, 2025, from $181,277 as of September 29, 2024, representing a growth of 21.6%[32] - Cash and restricted cash at the end of the year increased to $81,813 from $54,167, marking a rise of 50.9%[34] - Total liabilities decreased to $3,531,692 as of September 28, 2025, from $3,587,427 as of September 29, 2024, a reduction of 1.6%[32] Impairment and Expenses - The company incurred impairment charges of $213,997 for the 52 weeks ended September 28, 2025, compared to $171,415 in 2024[34] - The company reported an impairment of goodwill and intangible assets of 14.3% for the 52 weeks ended September 28, 2025, up from 10.3% in 2024[51] - The impairment of goodwill and intangible assets for the 52 weeks ended September 28, 2025, was $209,556, compared to $162,624 in 2024, indicating increased financial strain[59][60] - Operating costs and expenses for the 52 weeks ended September 28, 2025, totaled $1,483,384, slightly down from $1,488,770 in 2024[30] - The company reported interest expense of $78,941 for the 52 weeks ended September 28, 2025, slightly down from $80,016 in 2024[59] Future Outlook - For FY 2026, Jack in the Box expects same-store sales to range from -1% to +1% compared to FY 2025, with first-quarter results anticipated to remain pressured[22] - The company plans to maintain a restaurant count of 2,050 to 2,100, including approximately 20 new openings and 50 to 100 closures, mostly in franchises[21]

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Core Viewpoint - Analysts expect Jack In The Box (JACK) to report quarterly earnings of $0.46 per share, reflecting a significant year-over-year decline of 60.3%, with revenues projected at $321.46 million, down 8% from the previous year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.6%, indicating a collective reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenues- Franchise' to reach $185.39 million, a decrease of 6.3% year-over-year [5]. - 'Revenues- Company restaurant sales' are expected to be $136.31 million, indicating a 10% decline from the previous year [6]. - 'Revenues- Franchise rental revenues' are estimated at $81.45 million, down 6.7% from the year-ago quarter [6]. Restaurant Counts - The consensus estimate for 'Del Taco - Restaurant Counts (EOP) - Total' is 586, down from 594 in the same quarter last year [7]. - 'Jack in the Box - Restaurant Counts (EOP) - Total' is projected at 2,136, compared to 2,191 in the previous year [8]. - The total system for 'Franchise (Jack in the Box + Del Taco)' is expected to reach 2,443, down from 2,502 in the same quarter last year [9]. Market Performance - Jack In The Box shares have shown a return of -13.7% over the past month, contrasting with the S&P 500 composite's +1.4% change, indicating expected underperformance in the near future [11].