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 year-over-year to 16.1%, driven by sales deleverage, commodity inflation of 6.9%, and elevated labor costs [20] - Consolidated adjusted EBITDA for Q4 was $45.6 million, down from $65.5 million in the prior year, primarily due to lower same-store sales [26] - GAAP diluted earnings per share for Q4 was $0.30, compared to $1.12 in the prior year [27] 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 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, primarily due to transaction declines and inflationary increases in commodities [24] Market Data and Key Metrics Changes - The Chicago market had a -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 aims to simplify the business and strengthen the Jack in the Box brand [8] - The divestiture of Del Taco is a key step to refocus on the Jack in the Box brand and improve operational performance [8] - The company plans to enhance operational excellence and improve food quality, with a focus on consistency across operations [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 of 2026 but expects improvements in the second quarter, coinciding with the 75th anniversary celebrations [39] - Management has not built in significant macroeconomic tailwinds into their guidance, expecting conditions to remain flat [60] 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 [28] - 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 improvement in same-store sales for 2026? - Management expects improvements to be driven by a combination of promotional strategies, operational enhancements, and softer comparisons in the second half of the year [39][40] Question: What is the assumption in the current EBITDA guidance regarding real estate sales and closures? - Management confirmed that the guidance includes block closures and anticipates $50 million to $70 million in real estate sales [41][42] Question: How is franchisee sentiment regarding the current competitive environment? - Franchisees are under pressure but remain supportive of the brand, with ongoing conversations to drive business forward [66][70] Question: What are the expectations for G&A expenses in the second half of 2026? - G&A is expected to decrease to approximately 2.3%-2.4% of system-wide sales in the second half as the company right-sizes the business [62] Question: How are value scores trending, and what is the strategy moving forward? - Value scores have improved slightly, and the company aims to maintain consistent value offerings across its menu [84][92]

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]

Core Point - Jack in the Box is promoting its Smashed Jack burger with a special offer during Burger Week, allowing customers to purchase the burger for $5 each day from September 12 to 18, totaling $35 for seven burgers [1] Company Summary - The Smashed Jack burger, which debuted in 2024, has been recognized as the "Best Burger in Fast Food" [1] - The promotion is available both in-store and through the Jack App, emphasizing the company's focus on accessibility and customer engagement [1]