JACK IN THE BOX INC (JACK) Q4 2025 Earnings Summary

Executive Summary

Q4 performance deteriorated year over year as consolidated revenue fell 6.6% to $326.2M and GAAP diluted EPS declined to $0.30, pressured by negative comps at both Jack in the Box (-7.4%) and Del Taco (-3.9%), deleverage, and higher commodity/labor costs .
Against S&P Global consensus, JACK modestly beat on revenue but missed on EPS and EBITDA: Revenue $326.2M vs $323.8M*, EPS $0.30 vs $0.47*, EBITDA (SPGI basis) $38.7M vs $46.9M*; company-reported Adjusted EBITDA was $45.6M (non-GAAP) .
Management emphasized a pivot to a “barbell” value strategy (e.g., $4.99 Bonus Jack combo) and operational reset under “Jack’s Way”; trends improved ~300 bps intra-quarter but remain pressured into Q1, with 2026 framed as a rebuilding year .
FY2026 guidance (standalone Jack) targets flat comps (-1% to +1%), 17–18% company-owned restaurant level margin, $225–$240M Adjusted EBITDA, $125–$135M SG&A, and 2,050–2,100 restaurants amid 50–100 closures; dividend and buybacks discontinued .

What Went Well and What Went Wrong

What Went Well
- Value strategy traction and intra-quarter improvement: “All told, sales trends improved roughly 300 basis points throughout the course of the fourth quarter” as the team pivoted to price-pointed offers and barbell promotions (e.g., $4.99 Bonus Jack; $5 Smashed Jack) .
- Strategic simplification progressing: Announced Del Taco divestiture and block closure program advancing; multiple real estate transactions in process, with proceeds earmarked for debt paydown .
- Clear 2026 roadmap and tone: “2026 will very much be a rebuilding year,” with targets to return to positive comps, execute reimage, and pay down debt; emphasis on ops consistency, food quality, and modernizing restaurants .
What Went Wrong
- Comps and margin compression: Jack system SSS -7.4%; Del Taco -3.9%; Jack company-owned restaurant-level margin down 240 bps YoY to 16.1%, with Chicago ramp a 130 bps drag and beef inflation cited as the largest headwind .
- Elevated SG&A and pre-opening costs: SG&A rose to $36.6M (+$6.6M YoY) driven by $5.5M incremental Jack brand advertising and higher insurance; pre-opening costs increased by $2.6M on new market entries .
- Unit rationalization continues: 47 closures (38 part of block program) vs 15 openings in Q4; FY25 net closures of 86 Jack units signal ongoing portfolio clean-up before growth can resume .

Financial Results

Overall results vs prior periods

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$349.3	$336.7	$333.0	$326.2
GAAP Diluted EPS ($)	$1.12	$(7.47)	$1.15	$0.30
Adjusted EBITDA (non-GAAP, $M)	$65.5	$66.5	$61.6	$45.6
SG&A ($M)	$30.0	$35.5	$26.8	$36.6

Brand comps and margins

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Jack in the Box SSS (%)	(2.1%)	(4.4%)	(7.1%)	(7.4%)
Del Taco SSS (%)	(3.9%)	(3.6%)	(2.6%)	(3.9%)
Jack Company-owned Restaurant-Level Margin %	18.5%	19.6%	17.9%	16.1%
Del Taco Company-owned Restaurant-Level Margin %	9.3%	12.8%	9.7%	6.8%
Jack Franchise-Level Margin ($M / %)	$70.9 / 40.4%	$68.3 / 40.0%	$66.2 / 39.3%	$62.6 / 38.9%
Del Taco Franchise-Level Margin ($M / %)	$6.0 / 26.5%	$5.7 / 24.4%	$6.4 / 27.0%	$6.8 / 30.0%

Select KPIs

KPI	Q4 2024	Q4 2025
Jack systemwide sales ($M)	$995.6	$924.3
Del Taco systemwide sales ($M)	$219.9	$208.1
Jack openings / closures (units)	16 / 20	15 / 47
Jack restaurants at Q4-end (total)	2,191	2,136
Del Taco openings / closures (units)	2 / 5	4 / 13
Del Taco restaurants at Q4-end (total)	594	576

Guidance Changes

FY2026 (standalone Jack in the Box; Del Taco in discontinued ops)

Metric	Period	Previous Guidance	Current Guidance	Change
Restaurant count	FY2026	n/a	2,050–2,100	New
Same-store sales	FY2026 vs FY2025	n/a	-1% to +1%	New
Company-owned Restaurant-Level Margin %	FY2026	n/a	17%–18% (mid-single-digit commodity inflation; low-single-digit wage inflation)	New
Franchise-Level Margin	FY2026	n/a	$275–$290M (timing variability from closures/real estate)	New
SG&A	FY2026	n/a	$125–$135M; ~2.5% of system sales ex selling/advertising; TSA income not included	New
Depreciation & Amortization	FY2026	n/a	$45–$50M	New
Adjusted EBITDA	FY2026	n/a	$225–$240M	New
Capital Expenditures	FY2026	n/a	$45–$55M (priority: technology)	New
Capital returns	FY2026	n/a	Dividend and share repurchases discontinued	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Previous Mentions (Q3 2025)	Current Period (Q4 2025)	Trend
Value strategy and promotions	Emphasis on back-half marketing amid macro headwinds	Focus on “craveable value” to regain momentum	Barbell strategy; $4.99 Bonus Jack and $5 Smashed Jack; ~300 bps intra-Q improvement	Intensifying focus on price-pointed value
Jack on Track (simplify, closures, real estate)	Plan announced; guidance held	Ongoing closures/refranchising	38 franchise closures in Q4 under block program; real estate proceeds for debt paydown	Execution progressing; 2026 variability acknowledged
Commodity/wage inflation	Continued inflation (commodities, wages, utilities)	Higher labor/commodity pressure	Beef largest inflation driver; wage low-single digit in FY26 outlook	Persistent but planned for in FY26 margin guide
Operations/“Jack’s Way”	—	—	Rebuild ops discipline; retrain system; quality/consistency focus	New operational reset
New market impact (Chicago)	—	—	8 openings in 12 weeks; ~130 bps drag on company RLM in Q4; AUVs >$2M projected	Near-term margin drag; medium-term volume opportunity
Tech modernization	—	—	Ongoing modernization expected to build through 2026	Building; contributes modestly
Reimage program	—	—	Mini refresh tests now; comprehensive reimage to roll later in 2026	Preparing for broader rollout
Regulatory/labor (CA wage law)	AB1228 wage increases referenced in margin guidance	—	FUTA tax reversal benefited labor; wage inflation low-single digit in FY26	Wage pressures moderating vs prior spike

Management Commentary

CEO on Q4 underperformance and path forward: “While performance in the fourth quarter did not meet our expectations… getting back to basics with our Jack's Way operations and marketing… I am optimistic that the improvements… combined with the structural changes from our Jack on Track plan will quickly lead to much improved results” .
CEO on strategy and 2026: “We pivoted… to feature our $4.99 Bonus Jack combo… The overall result? Transactions improved throughout the quarter… 2026 will very much be a rebuilding year” .
CFO on margin headwinds: “Jack restaurant level margin… decreased… to 16.1%… driven by sales deleverage, commodity inflation of 6.9%, and elevated labor costs… Chicago… had a negative 130 basis point drag on our overall company restaurant level margin” .
CFO on FY2026 guidance and deleveraging: “Adjusted EBITDA… $225–$240 million… expect to pay down $263 million in debt by retiring the August 2026 tranche” .

Q&A Highlights

Same-store sales cadence and 2026 recovery shape: Q1 FY26 to remain soft; improvement expected as 75th anniversary promotions/innovation hit and compares ease in H2 .
EBITDA guidance sensitivity: FY26 includes 60–100 closures and $50–$70M real estate sales; closures reduce FLM by ~$80k per closure annually; timing adds variability .
Marketing ROI/Value: ~$5.5M incremental Q4 marketing drove transactions and trial at $5 price points; goal is to avoid additional fund contributions but “keep options open” .
Franchisee sentiment and reinvestment: Conversations are “pointed but respectful”; mini-refresh option (<$25k) to bridge to a comprehensive reimage program; leadership focus to accelerate reimage rollout .
Margin path and Chicago: Chicago staffing/learning curve inflated labor in Q4; expected to normalize as market matures; beef inflation remains the main cost headwind .

Estimates Context

Q4 2025 actuals vs S&P Global consensus

Metric	Actual	Consensus	Surprise
Primary EPS ($)	$0.30*	$0.47*	Miss
Revenue ($M)	$326.2*	$323.8*	Beat
EBITDA ($M, SPGI basis)	$38.7*	$46.9*	Miss

Values marked with * are retrieved from S&P Global via GetEstimates. Company-reported Adjusted EBITDA (non-GAAP) was $45.6M for Q4 2025 .

Key Takeaways for Investors

Near-term headwinds persist: Negative comps at both brands and margin deleverage continued in Q4; Q1 FY26 remains pressured before planned sequential improvement .
Value-led traffic strategy is central: Barbell pricing and a consistent value presence are the primary levers to stabilize traffic; early signs of improvement emerged late in Q4 .
FY2026 is a reset year: Flat comps and 17–18% company-owned RLM are targeted while executing closures, real estate monetization, and tech/ops upgrades .
Chicago is a temporary drag with volume upside: 8 openings compressed margins by ~130 bps but are projected at >$2M AUVs, supporting medium-term throughput .
Balance sheet actions slated: Expected $263M debt retirement (Aug-26 tranche) post Del Taco sale and real estate proceeds aims to reduce leverage and de-risk the story .
Estimates likely to drift lower on profitability: EPS and EBITDA misses vs consensus suggest 2026 street models may need to incorporate higher beef inflation, SG&A timing, and closure-related margin impacts .
Trading setup: The narrative hinges on proof-points in traffic stabilization, Chicago normalization, and visible execution on reimage/ops—watch Q1 trend commentary, beef inflation, and monthly system SSS disclosures if available .

Additional Context: Promotions in Q4

Jack launched “Munch Better Deals” (meals starting at $7) during the quarter to support value positioning, complementing the $4.99 Bonus Jack and app-led offers highlighted on the call .

Appendix: Company-Wide P&L Highlights (Q4 2025)

Revenue mix: Company restaurant sales $142.5M; franchise rental revenues $80.7M; royalties/other $52.1M; franchise contributions $50.9M .
Operating line items: SG&A $36.6M; pre-opening $3.9M; D&A $15.0M; other operating expense $9.0M .
Tax: Effective tax rate (30.4%) due to non-taxable COLI gains and favorable state audit accruals; non-GAAP operating EPS tax rate 11.9% .
Cash/debt/liquidity: Unrestricted cash $51.5M, available revolver capacity $96.8M, total debt ~$1.7B; net debt/Adj. EBITDA ~6x at year-end .

Citations:

Q4 2025 8-K press release and exhibits:
Q4 2025 earnings call transcript:
Q3 2025 press release:
Q2 2025 press release:
Other relevant Q4 press release (value lineup):

S&P Global estimates disclaimer: Values marked with * are retrieved from S&P Global via GetEstimates.