JACK IN THE BOX INC (JACK) Q2 2025 Earnings Summary

Executive Summary

Q2 2025 showed top-line pressure but a mixed headline: revenues fell 7.8% to $336.7M while non-GAAP Operating EPS was $1.20 and Adjusted EBITDA was $66.5M; GAAP diluted EPS was a loss of ($7.47) driven by a $203.2M non-cash impairment at Del Taco .
Versus S&P Global consensus, JACK delivered a small revenue miss but an EPS and EBITDA beat: Revenue $336.7M vs $342.3M*, Operating EPS $1.20 vs $1.15*, Adjusted EBITDA $66.5M vs $66.0M*; the impairment does not affect Operating EPS or Adjusted EBITDA guidance (non-GAAP) .
Same-store sales declined at both brands: Jack in the Box -4.4% and Del Taco -3.6%, with traffic and mix headwinds; management cited tech rollout disruptions (estimated ~1–2% comp impact) and macro pressure on lower-income cohorts, with planned value and innovation to re-accelerate comps in H2 .
Guidance unchanged from the April 23 “JACK on Track” plan (CapEx $100–105M, Operating EPS $5.05–5.40, Adjusted EBITDA $282–292M; dividend discontinued). Strategic alternatives for Del Taco attracted “significant interest,” and a block closure program (150–200 units) will be detailed in August .
Near-term catalysts: clarity in August on closures, progress on Del Taco alternatives, and acceleration in digital/kiosk adoption (digital mix now 18% system-wide; ~1,500 restaurants with new POS/flip kiosks) .

What Went Well and What Went Wrong

What Went Well

Non-GAAP profitability held up despite sales pressure: Operating EPS of $1.20 and Adjusted EBITDA of $66.5M; restaurant-level margins benefited from favorable beverage funding under a new contract .
Digital and technology progress: digital sales reached 18% system-wide, with new POS and flip kiosks in nearly 1,500 restaurants; management reiterated commitment to tech modernization and expects 20% digital ahead of schedule .
Strategic path clarity: “JACK on Track” initiatives to simplify the model, delever, close underperforming units, and pursue Del Taco strategic alternatives; early interest reported in the process .
- CEO: “We will strengthen our balance sheet… close underperforming restaurants… and return overall simplicity to the Jack in the Box business model and our investor story” .

What Went Wrong

Top-line weakness: total revenues down 7.8% YoY; comps negative at both brands as transactions and mix declined, partly offset by price .
Cost inflation and wage pressure: Jack labor costs +320 bps YoY to 33.8% of sales; Del labor +330 bps YoY to 38.2%, largely due to California minimum wage changes (AB1228) .
Non-cash impairment at Del Taco ($203.2M) drove GAAP loss and highlighted performance challenges at the brand; Del Taco restaurant-level margin fell to 12.8% (from 16.8%) .

Financial Results

Consolidated Finance and KPIs

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$365.3	$469.4	$336.7
GAAP Diluted EPS ($)	$1.26	$1.75	($7.47)
Operating EPS (non-GAAP) ($)	$1.46	$1.92	$1.20
Adjusted EBITDA ($USD Millions)	$75.7	$97.2	$66.5
Jack in the Box SSS (%)	(2.5%)	+0.4%	(4.4%)
Del Taco SSS (%)	(1.4%)	(4.5%)	(3.6%)

Consensus vs Actual (S&P Global; Q2 2025)

Metric	Consensus*	Actual
Revenue ($USD Millions)	$342.3*	$336.7
Operating EPS ($)	$1.15*	$1.20
Adjusted EBITDA ($USD Millions)	$66.0*	$66.5

Values retrieved from S&P Global.*

Significance: Revenue miss; Operating EPS and Adjusted EBITDA beat.

Segment Margins and System Sales

Segment Metric	Q2 2024	Q2 2025
Jack Restaurant-Level Margin ($)	$23.3	$18.7
Jack Restaurant-Level Margin (%)	23.6%	19.6%
Jack Franchise-Level Margin ($)	$71.7	$68.3
Jack Franchise-Level Margin (%)	40.4%	40.0%
Jack Systemwide Sales ($USD ‘000s)	$1,010,192	$960,704
Del Restaurant-Level Margin ($)	$11.4	$6.1
Del Restaurant-Level Margin (%)	16.8%	12.8%
Del Franchise-Level Margin ($)	$6.1	$5.7
Del Franchise-Level Margin (%)	28.9%	24.4%
Del Systemwide Sales ($USD ‘000s)	$223,025	$212,993

Other KPIs

KPI	Q2 2025
Digital mix (%)	18% system-wide
POS/Flip kiosks deployed	~1,500 restaurants
Jack openings/closures (Q2)	5 opens / 12 closures
Del openings/closures (Q2)	6 opens / 4 closures
Total Debt ($USD Millions)	$1,716.7 (LT + current)
Available borrowing capacity ($USD Millions)	$96.5
Net debt / Adjusted EBITDA (x)	5.5x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures	FY 2025	$105–115M (Nov-20-2024)	$100–105M (Apr-23-2025; reaffirmed Q2)	Lowered
Share Repurchases	FY 2025	~$20M (Nov-20-2024)	~$5–15M (Apr-23-2025; $5M done in Q1)	Lowered
Adjusted/Operating EPS Tax Rate	FY 2025	~27.5% (Nov-20-2024)	~26.0% (Apr-23-2025; reaffirmed Q2)	Lowered
Adjusted EBITDA (non-GAAP)	FY 2025	$288–303M (Nov-20-2024)	$282–292M (Apr-23-2025; reaffirmed Q2)	Slightly Lowered
Operating EPS (non-GAAP)	FY 2025	$5.05–$5.45 (Nov-20-2024)	$5.05–$5.40 (Apr-23-2025; reaffirmed Q2)	Narrowed lower
Jack Same-Store Sales	FY 2025	Flat to +1% (Nov-20-2024)	Negative low-to-mid single digits (Apr-23-2025; reaffirmed Q2)	Lowered
Jack Gross Openings	FY 2025	35–45 (Nov-20-2024)	35–40 (Apr-23-2025; reaffirmed Q2)	Slightly Lower
Jack Company-Owned RLM	FY 2025	20–22% (Nov-20-2024)	19–21% (Apr-23-2025; reaffirmed Q2)	Lowered
Dividend	Ongoing	$0.44 declared in Q1; ongoing subject to BoD (Nov-2024)	Discontinued (Apr-23-2025; reaffirmed Q2)	Discontinued
Del Taco Brand Guidance	FY 2025	Provided previously	Suspended indefinitely (Apr-23-2025)	Suspended

Earnings Call Themes & Trends

Topic	Q4 2024 (Prior)	Q1 2025 (Prior)	Q2 2025 (Current)	Trend
Digital/Tech rollout	POS rollout progress; digital initiatives emphasized	Nearly 1,000 restaurants on new POS	18% digital sales; ~1,500 POS/flip kiosks; temporary sales impact from legacy integration	Accelerating, near-term operational friction
Consumer/macro	Managed through difficult macro	Positive SSS at Jack; macro headwinds expected in Q2	Negative traffic; pressure on low-income cohorts	Persistent pressure
Pricing/value	Price offsetting mix/traffic	Barbell strategy; value leadership	Focus on Munchie Meal, curated value; $9–$10 perceived value	Reinforcing value narrative
California wage impact	Wage inflation noted	Wage increase impact acknowledged	Jack labor +320 bps; Del +330 bps; AB1228 referenced	Ongoing headwind
Product innovation	Growth pipeline	Menu optimization at Del	New curly fry flavors; sold-out Nashville hot mozzarella sticks; Red Bull partnership	Active innovation
Strategic actions	Development agreements; growth	Evaluating capital allocation	“JACK on Track” plan; closure program; Del Taco alternatives with significant interest	Simplification; asset-light pivot

Management Commentary

“Driving same-store sales is and always will be our top priority… digital is an area where continued investment will be tremendously important, and we remain committed to becoming a digital leader…” — CEO Lance Tucker .
“Helped by continued increases in first-party activity and flip kiosks, we are now at 18% digital sales system-wide… nearly 1,500 restaurants [with POS/flip kiosks].” — CEO Lance Tucker .
“Restaurant level margin percentage… decreased to 19.6% [Jack], down from 23.6% a year ago… driven primarily by lower sales… partially offset by price increases and favorable beverage funding.” — CFO Dawn Hooper .
“We will strengthen our balance sheet… pay down debt… close underperforming restaurants… and return overall simplicity to the business model.” — CEO Lance Tucker .
“We have had significant reach out and interest in [Del Taco]… feeling solidly that [divestiture] would be the option we would go down.” — CEO Lance Tucker .

Q&A Highlights

Comps trend and tech impact: Management indicated Q3 trends running in line with Q2, citing temporary tech integration issues contributing ~1–2% comp headwind and cautious consumer behavior .
Value positioning: Emphasis on barbell strategy, Munchie Meal, and curated value (including items under $4); acknowledgment that perceived value at $9–$10 can resonate via box meals .
Del Taco strategic alternatives: Early interest noted; focus on operations, marketing revamp, and menu additions during the process .
Closure program: Geographic impact expected to be broadly distributed and economics-driven; more detail in August .
Pricing carryover: Price carryover a little over ~2% for the remainder of the year .
Allowance for doubtful accounts: Increase tied to one specific franchise matter; closures not expected to elevate bad debt .

Estimates Context

Q2 2025 vs S&P Global consensus: Revenue $336.7M vs $342.3M*, Operating EPS $1.20 vs $1.15*, Adjusted EBITDA $66.5M vs $66.0M* . Values retrieved from S&P Global.*
Forward look (consensus): FY 2025 Revenue ~$1.456B*, Adjusted EBITDA ~$270.5M*, EPS ~$4.62* (below company guidance of $282–292M Adjusted EBITDA and $5.05–$5.40 Operating EPS) . Values retrieved from S&P Global.*
Implication: Street may need to reconcile company’s reaffirmed non-GAAP guidance with recent comp and margin dynamics; near-term revisions likely hinge on execution of tech rollout, value calendar, and closure plan details .

Key Takeaways for Investors

H2 setup: With digital at 18% and tech modernization progressing, temporary onboarding issues should recede; management expects H2 marketing/value innovation to support stabilization — monitor Q3/Q4 comps and digital mix trajectory .
Non-GAAP resilience: Despite soft sales, Operating EPS and Adjusted EBITDA beat consensus; watch wage/utility inflation and beverage funding benefits’ durability .
Strategic simplification: “JACK on Track” catalysts—closure details in August, Del Taco strategic alternatives—could unlock cash flow and simplify the story; assess valuation impact from potential asset moves .
Guidance credibility: Company reaffirmed April 23 guidance; Street is below on FY Adjusted EBITDA/EPS—track execution vs barbell strategy and cost headwinds to gauge revision risk .
Balance sheet and leverage: Net debt/EBITDA at 5.5x; focus on real estate sales and dividend discontinuation to accelerate deleveraging; confirm progress on targeted paydown .
Margin levers: Beverage funding is a tailwind; wage inflation remains a headwind—monitor mix/pricing and delivery fees impact on occupancy/other .
Trading setup: Near-term moves likely keyed to August closure disclosures and Del Taco process updates; positive signals on comps/value could drive relief, while lingering tech friction or macro softness could cap upside .

All data cited to company documents and call remarks above. Values from S&P Global consensus marked with an asterisk and noted as retrieved from S&P Global.