Jack in the Box(JACK) - 2025 Q4 - Annual Results

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]