Question · Q1 2026
Pratik asked about franchisee four-wall margins, which are presumably below the company's 16.1%, and what short-term assistance, such as commodity price negotiation or rent relief, Jack in the Box could offer to help franchisees. He also asked about the company's price-value strategy, given the modest improvement in company traffic and the shift from mid-2% pricing in fiscal 2025 to 3% in Q1 2026.
Answer
CEO Lance Tucker stated that while franchisees generally have good economics, four-wall EBITDA is under pressure due to sales conditions and beef inflation. He indicated no blanket assistance but mentioned looking at one-off cases for struggling franchisees. He highlighted efforts to improve profitability through team restructuring, new soft drink dispensers, supply chain cost cuts, and digital program revamps. Regarding pricing, he noted the company took slightly more price in Q1 while maintaining value, also mentioning price reductions on bundles and increased soft drink ounces.
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