Jack in the Box (JACK) Investor presentation summary

Strategic initiatives and plan progress

• Accelerated cash flow by discontinuing dividends and reallocating funds to debt reduction, with dividend discontinued as of Q2 2025.

• Completed sale of Del Taco in December 2025, using proceeds to pay down $105M in debt and simplify the business model.

• Closed 65 underperforming restaurants to date, with additional closures planned for FY26 to improve system health and franchisee economics.

• Preserved growth-oriented capital investments, prioritizing technology and restaurant reimaging, while reducing spend on company-owned restaurant growth.

• Generated over $15M from targeted real estate sales, applying proceeds toward further debt reduction.

Financial performance and guidance

• Fiscal 2026 guidance includes 2,050–2,100 restaurants, same-store sales between -1% and +1%, and restaurant-level margins of 17–18%.

• SG&A projected at $125M–$135M, D&A at $45M–$50M, and capital expenditures at $45M–$55M, focusing on sales-driving technology.

• Franchise-level margin expected at $275M–$290M, with adjusted EBITDA guidance of $225M–$240M.

• Pre-opening expenses forecasted at less than $0.5M for FY26.

Debt, leverage, and securitization

• Leverage ratio stood at 6.5x at the end of Q1 2026, with total debt of $1.6B and net debt of $1.5B.

• Securitization structure provides fixed-rate financing with an average cost of debt at 4.17% and staggered maturities.

• Investment-grade bonds and covenant-light structure offer flexibility, with a $100M EBITDA cushion to the first DSCR trigger.

• Trailing 12-month adjusted EBITDA as of Q1 FY26 was $232.2M.