Jack in the Box sales continued to slide in Q4

Core Insights - Jack in the Box reported disappointing fourth quarter financial results for both Jack in the Box and Del Taco brands, with significant declines in same-store sales and overall systemwide sales [1] Jack in the Box Performance - Same-store sales at Jack in the Box fell by 7.4%, with company-operated same-store sales decreasing by 5.3% and franchise same-store sales decreasing by 7.6%, driven by a decline in transactions and an unfavorable menu mix, partially offset by price increases [2] - Systemwide sales for the fourth quarter decreased by 7.2% [2] - Restaurant-level margin was 16.1% for the fourth quarter, down from 18.5% in the prior-year quarter, impacted by inefficiencies from entering the Chicago market, transaction declines, and inflationary increases in commodity costs, particularly beef [3] Strategic Initiatives - The CEO expressed a commitment to restoring positive momentum for the Jack in the Box brand through operational and marketing initiatives, emphasizing a return to basics and leveraging brand equities [4] - The "Jack on Track" plan, introduced in April, aims to close up to 200 units and divest the Del Taco brand, which was acquired for approximately $585 million in 2022; Yadav Enterprises agreed to acquire Del Taco for $115 million [4] - During the fourth quarter, 38 out of 47 restaurants were closed as part of the restructuring plan, with a total of 31 new restaurants opened and 86 closed in fiscal year 2025 [4] Del Taco Performance - Del Taco's same-store sales decreased by 3.9% in Q4, with franchise same-store sales down by 4.2% and company-operated same-store sales down by 3.1%, driven by transaction declines and an unfavorable mix, partially offset by menu price increases [5] - Systemwide sales for Del Taco in the fourth quarter decreased by 5.4% [5]