Core Insights - Jack in the Box is introducing new protein-packed menu items to cater to health-conscious consumers starting the New Year [1] - The new offerings include the popular Teriyaki Bowl and a new Fajita Bowl, both designed to provide substantial protein content [1] - Jack's Protein Bowls contain up to 35 grams of protein, appealing to customers looking for nutritious meal options without compromising on flavor [1] Product Highlights - The Protein Bowls are a key focus for Jack in the Box, emphasizing the brand's commitment to providing healthy and flavorful choices [1] - The introduction of the Fajita Bowl marks a new addition to the existing lineup, showcasing the company's innovation in menu development [1] - The emphasis on protein-rich meals aligns with current consumer trends towards healthier eating habits [1]

Core Insights - Del Taco is offering a promotional deal of two Grilled Chicken Tacos for $3, available until February 9, 2026, catering to consumers looking for quality meals at affordable prices [1][3]. Product Offering - The Grilled Chicken Tacos are made with freshly grilled, marinated chicken, topped with a secret sauce, shredded lettuce, and house-grated cheddar, all wrapped in a warm flour tortilla [2][8]. - Del Taco is also introducing a lineup of Real Strawberry Beverages, including Real Strawberry Lemonade, Real Strawberry Sprite, and a Real Strawberry Shake, all made with real strawberries [3][9]. Market Positioning - Del Taco recognizes the shift in consumer spending habits as they enter the new year, emphasizing value and quality in their offerings [3]. - The company has been voted Best Fast Food Restaurant in USA Today's 2025 10 Best Reader's Choice Awards, highlighting its commitment to quality and customer satisfaction [4]. Company Background - Founded in 1964, Del Taco operates nearly 600 restaurants across 17 states, serving over three million guests weekly [5]. - The company focuses on preparing menu items from scratch, ensuring real food at a real value for customers [5].

Core Viewpoint - Jack in the Box is planning to close dozens of underperforming restaurants to cut costs and improve revenue, with a target of shutting down 150-200 locations by 2026, including 80-120 by the end of this year [1][4]. Group 1: Restaurant Closures - The company has already closed 12 locations in May, followed by 13 closures in August, and an additional 47 closures reported in November, bringing the total to 72 closures [1][4]. - The closures are part of a block closure program aimed at enhancing financial performance due to declining customer traffic and rising beef prices [4]. Group 2: Financial Performance - Jack in the Box reported a net loss of $80.7 million for the fiscal year ending in September, with a 7.4% decline in sales during the fourth quarter of fiscal 2025 compared to the same quarter in 2024 [5]. - This marks the second consecutive quarter with a sales dip exceeding 7% [5]. Group 3: Strategic Focus - The CEO emphasized a simplified and asset-light business model to maximize shareholder returns, focusing on three main areas: improving the balance sheet, closing underperforming restaurants, and maintaining growth-oriented capital investments [7][8]. - The company aims for consistent net unit growth and competitive unit economics through these strategic actions [8]. Group 4: Recent Developments - Jack in the Box has completed the sale of Del Taco to Yadav Enterprises for approximately $119 million as part of its turnaround strategy [10]. - The company operates around 2,200 restaurants in the U.S., primarily located in California, Texas, and Arizona [10].

Group 1 - The company has completed the sale of Del Taco Holdings to Yadav Enterprises Inc for approximately $119 million, which is a significant step in its "Jack on Track" plan [1] - The transaction involved receiving about $109 million in cash and a $10 million promissory note with an 8% annual interest rate, guaranteed by Anil Yadav, the founder and CEO of Yadav [1] - This sale aims to strengthen the company's balance sheet and accelerate its transition to a simpler, asset-light business model [1]

Core Viewpoint - Jack in the Box has successfully divested its Del Taco brand to Yadav Enterprises for approximately $119 million, marking a strategic move to simplify its business model and improve its balance sheet [1][4]. Group 1: Transaction Details - The definitive agreement for the sale was signed in October 2023, with Del Taco now operating under Yadav Enterprises as part of its franchise portfolio [1]. - Upon completion of the deal, Jack in the Box received around $109 million in cash and a $10 million promissory note with an 8% annual interest rate, guaranteed by Yadav Enterprises' CEO Anil Yadav [3]. - The final deal value may be subject to adjustments based on post-completion working capital calculations [4]. Group 2: Company Background and Future Plans - Del Taco, founded in 1964, operates over 600 outlets across 17 U.S. states, offering a mix of Mexican-inspired and American dishes [2]. - Jack in the Box's CEO stated that the sale represents significant progress in reducing debt and simplifying the business model, aligning with the "Jack on Track" program aimed at achieving an asset-light operating structure [3][4]. - Yadav Enterprises, which now includes Del Taco in its portfolio, operates over 300 franchised restaurants and is the largest franchisee for brands like Jack in the Box, Denny's, and TGI Friday's [5]. Group 3: Advisory and Legal Support - BofA Securities acted as the sole financial adviser to Jack in the Box for this transaction, while Sullivan & Cromwell provided legal advice [6]. - Yadav Enterprises was represented by its general counsel and received advisory support from Baker Tilly [6].

Core Viewpoint - Jack in the Box Inc. has completed the sale of Del Taco Holdings Inc. to Yadav Enterprises Inc. for approximately $119 million, marking a significant step in the company's strategy to simplify its business model and strengthen its balance sheet [1][2]. Financial Details - The sale was finalized for about $119 million, with Jack in the Box receiving approximately $109 million in cash and a $10 million promissory note accruing interest at an 8% annual rate, guaranteed by Anil Yadav, the CEO of Yadav Enterprises [2]. Strategic Implications - The CEO of Jack in the Box emphasized that the sale of Del Taco is a meaningful advancement in simplifying the business model and reducing debt, while also committing to enhancing the Jack in the Box brand and operational performance for sustainable growth [3]. Company Background - Jack in the Box Inc., headquartered in San Diego, operates approximately 2,135 restaurants across 21 states, making it one of the largest hamburger chains in the U.S. [4]. Yadav Enterprises Overview - Yadav Enterprises operates over 310 franchise restaurants, including brands like Jack in the Box and Del Taco, which is the second largest Mexican-American QSR chain in the U.S. with around 575 locations [5].

Industry Insights - Consumers in the US are dining out despite food inflation, with a notable shift towards ordering more appetizers, which have increased by 20% year over year, while entrees and desserts remain flat or declining [1] - The trend termed the "appetizer economy" is attributed to appetizers being more frequently tied to promotions and drink specials, making dining out more affordable [1] - Food inflation persists, with "food away from home" inflation at 3.7%, and full-service meals inflation at 4.2%, indicating a K-shaped economy in food spending [2] Company Analysis - Jack in the Box Inc. (NASDAQ:JACK) is highlighted as a strong fast food stock, with RBC Capital raising its price target from $16 to $25, citing the company's strong brand and potential for unit growth [7][8] - Jack in the Box is divesting its subsidiary Del Taco Holdings Inc. for $115 million, which is part of its "Jack on Track" plan aimed at improving its balance sheet and focusing on its core brand [9][10] - Sweetgreen, Inc. (NYSE:SG) is also noted as a promising fast food stock, with RBC Capital maintaining a Buy rating and a price target of $8, alongside its expansion into the Sacramento market with new restaurant openings [11][12][14]

Core Viewpoint - Jack In The Box reported mixed Q4 fiscal 2025 results, with earnings missing estimates while revenues exceeded expectations, indicating potential challenges ahead for the company [2][3]. Financial Performance - Adjusted EPS for Q4 was 30 cents, missing the Zacks Consensus Estimate of 46 cents, and down 74.1% from $1.16 in the prior-year quarter [3]. - Quarterly revenues reached $326.2 million, surpassing the consensus mark of $321 million, but declined 6.6% year-over-year due to lower sales volume and Del Taco refranchising [3]. Franchise and Sales Metrics - Franchise rental revenues decreased 7.6% year-over-year to $80.7 million, while franchise royalties and other revenues fell 4.4% to $52.1 million [4]. - Company-owned same-store sales decreased 5.3%, and same-store sales at franchised stores dropped 7.6%, indicating a decline in overall sales performance [5]. Operating Margins - Total restaurant-level adjusted margin was 16.1%, down from 18.5% in the prior-year quarter, while total franchise level margin decreased to 38.9% from 40.4% [7]. Balance Sheet Overview - As of September 28, 2025, cash totaled $51.5 million, an increase from $24.7 million a year prior, while long-term debt was $1.67 billion, slightly down from $1.7 billion [8]. Future Outlook - For fiscal 2026, management anticipates adjusted EBITDA between $225-$240 million and expects same-store sales to be flat or down 1% compared to 2025 [10]. - The company has a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [13]. Industry Comparison - Jack In The Box operates within the Zacks Retail - Restaurants industry, where competitor McDonald's has shown a 5.1% gain over the past month, highlighting contrasting performance trends [14].

Core Message - Jack in the Box is celebrating its 75th anniversary with a year-long campaign featuring nostalgic menu items, exclusive collectibles, and special deals to thank its loyal customers [1][2][3] Group 1: Anniversary Celebration - The celebration includes the return of fan-favorite menu items, limited edition collectibles, and various promotions throughout the year [2][3] - The Chicken Supreme, a popular item first introduced in 1980 and retired in 2004, is making a comeback as part of the anniversary festivities [4] - The company is launching a special offer of 2 tacos for $0.75 on January 6, available exclusively through the Jack app for one day [5] Group 2: Collectibles and Promotions - Alongside the Chicken Supreme, Jack in the Box is introducing limited-edition collectible bag charms called Jibbis, which are included in the Chicken Supreme Munchie Meal [4] - The company plans to engage customers with 75 Days of Trivia throughout the year, offering in-app trivia questions related to key dates and fan-favorite moments [5][6] - Additional nostalgic menu items, exclusive merchandise, and surprises are expected throughout 2026 as part of the ongoing celebration [6] Group 3: Company Overview - Jack in the Box Inc. operates approximately 2,135 restaurants across 21 states and is one of the largest hamburger chains in the U.S. [8] - The company also operates Del Taco, the second largest Mexican-American QSR chain in the U.S. with around 575 restaurants across 18 states [8]

Core Viewpoint - Jack in the Box is launching its third annual Jackmas promotion, which aims to provide daily deals for customers during the holiday season, enhancing customer engagement and brand loyalty [1]. Group 1: Promotion Details - The Jackmas promotion will run from December 1 through December 24, offering Jack Pack® members a new deal every day via the Jack app [1]. - Each daily offer is specifically selected to keep customers engaged and satisfied throughout the holiday period [1]. Group 2: Customer Engagement - The promotion is designed to appeal to a wide audience, regardless of whether customers have been "naughty or nice," indicating an inclusive marketing strategy [1]. - The initiative aims to position Jack in the Box as a festive and enjoyable part of customers' daily routines during the holiday season [1].