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]

Financial Data and Key Metrics Changes - For Q3 2025, Jack in the Box reported a system same-store sales decrease of 7.1%, with franchise same-store sales down 7.2% and company-owned same-store sales down 6.4% [23][24] - Consolidated adjusted EBITDA was $61.6 million, down from $78.9 million in the prior year, primarily due to sales deleverage [30] - GAAP diluted earnings per share for Q3 was $1.15 compared to a net loss per share of $6.26 in the same quarter last year [30] Business Line Data and Key Metrics Changes - Jack brand's restaurant level margin percentage decreased to 17.9%, down from 21% a year ago, driven by sales deleverage [24] - Del Taco's system same-store sales declined 2.6%, with franchise same-store sales down 2.7% and company-owned same-store sales down 2.2% [26] - Del Taco's restaurant level margin was 9.7%, down 370 basis points from the prior year, primarily due to lower sales and higher costs [27] Market Data and Key Metrics Changes - The macro environment remains challenging, with consumers, particularly in Hispanic communities, being cautious and pulling back spending [8][56] - Digital sales mix reached 18.5% for Jack in the Box, with Del Taco achieving approximately 20% of system-wide sales through digital channels [17][26] Company Strategy and Development Direction - The company is refocusing on improving the guest experience through operational excellence, quality food at good value, and modernizing restaurants [12][15][17] - The "Jack on Track" plan aims to close underperforming restaurants and improve franchisee health, with expectations to close 80 to 120 restaurants by the end of 2025 [32][35] - The company plans to invest $5.5 million in incremental marketing to support new product offerings and improve sales performance [11][38] Management's Comments on Operating Environment and Future Outlook - Management noted that the low-income consumer remains cautious, impacting sales, while the mid-income consumer has also shown signs of struggle [54][56] - The company expects same-store sales for Jack in the Box to decline in the low to mid-single digits for the fiscal year, with a focus on improving value offerings [39] - Management expressed confidence in the long-term potential of both Jack in the Box and Del Taco brands despite current challenges [6][8] Other Important Information - The company did not repurchase any shares during the quarter and has discontinued its dividend [31] - Total debt outstanding at quarter end was $1.7 billion, with a net debt to adjusted EBITDA leverage ratio of 5.7 times [32] Q&A Session Summary Question: Guidance for Jack in the Box same-store sales - Management indicated that Q4 performance is expected to improve with new value offerings and marketing support [42][44] Question: Real estate sales target of $100 million - The $100 million figure is seen as a minimum target, with flexibility based on the Del Taco process and cash accumulation [47][48] Question: Operational improvements with Shannon McKinney's return - Shannon is expected to focus on operational basics, improving service quality and accountability [52][53] Question: Sensitivity of restaurant margin to same-store sales changes - A 1% change in same-store sales is estimated to impact restaurant margin by approximately 10 basis points [75][78] Question: Impact of soft sales on the Jack on Track plan - Management confirmed that soft sales would not delay the Jack on Track initiatives, as closures and real estate sales will be spread over several years [81][82] Question: Interest in remodels from franchisees - There was high interest in the previous remodel program, with over 1,000 applications for a limited number of spots [93] Question: Cadence of remaining restaurant closures - Management anticipates that at least half of the remaining closures will occur by the end of the fiscal year [96][97]