Jack in the Box (JACK) investor relations material

Executive summary

• Third quarter marked by challenging macro environment, cautious consumer spending, and sales headwinds, especially among Hispanic and lower-income guests.

• Total revenues fell 9.8% year-over-year to $333.0 million, mainly due to lower sales and Del Taco refranchising.

• Net earnings were $22.0 million, compared to a net loss of $122.3 million in the prior year quarter, which included a large impairment charge.

• Strategic focus on improving guest experience, operational excellence, and value offerings, with a multi-year restaurant reimage initiative planned.

• The company is exploring strategic alternatives for Del Taco, discontinuing its dividend, and redirecting funds to debt reduction.

Financial highlights

• Jack system same store sales decreased 7.1% year-over-year; franchise down 7.2%, company-owned down 6.4%.

• Del Taco system same store sales declined 2.6% year-over-year; company-owned down 2.2%.

• Adjusted EBITDA was $61.6M, down from $78.9M prior year; GAAP diluted EPS was $1.15 vs. a net loss of $6.26 last year.

• Restaurant-level margin for Jack in the Box was 17.9% (down from 21.0%); Del Taco was 9.7% (down from 13.4%).

• Company restaurant sales declined 15.3% to $140.9 million; franchise rental revenues fell 4.5% to $85.1 million year-over-year.

Outlook and guidance

• FY25 capex expected at $85M–$90M; no further share repurchases planned beyond $5M in Q1.

• FY25 adjusted EBITDA guidance: $270M–$275M; operating EPS: $4.55–$4.73.

• Jack same store sales expected to be negative low to mid-single digits; 30–35 gross openings; margin 19%–21%.

• SG&A for full year expected at $155M–$160M, including $5.5M incremental Q4 marketing spend.

• Management expects sufficient liquidity from operations and credit facilities to meet capital and debt needs for the next twelve months.