Why Is Jack In The Box (JACK) Up 27% Since Last Earnings Report?

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].