Jack in the Box (JACK) Q1 2026 earnings summary

Executive summary

• Completed the sale of Del Taco in December 2025 for $115 million in cash, resulting in a strategic shift and classification of Del Taco results as discontinued operations for all periods presented.

• Q1 results aligned with expectations, with a focus on simplifying operations, reducing debt, and improving guest experience as part of the 'JACK on Track' plan.

• As of January 18, 2026, operated and franchised 2,128 restaurants, with 149 company-operated and 1,979 franchise-operated locations.

• 75th anniversary marketing and product launches drove higher average checks and positive customer response.

• Early progress on operational improvements and cost-effective restaurant refreshes is evident.

Financial highlights

• Total revenues from continuing operations were $349.5 million, down 5.8% year-over-year, driven by same-store sales declines and fewer restaurants.

• Same-store sales decreased 6.7% year-over-year: franchise down 7.0%, company-owned down 4.7%.

• Restaurant-level margin fell to 16.1% from 23.2% year-over-year.

• Food and packaging costs rose to 29.7% of sales, up 3.8 pts, driven by 7.1% commodity inflation.

• Earnings from continuing operations were $14.4 million, down from $31 million; GAAP EPS was $0.75 vs. $1.61; adjusted EBITDA was $68.2 million, down from $88.8 million.

Outlook and guidance

• Guidance for fiscal 2026 reiterated: restaurant count of 2,050–2,100, 20 new openings, 50–100 closures, and same-store sales expected between -1% and +1% versus fiscal 2025.

• Company-owned restaurant margin projected at 17–18%; franchise margin $275–$290 million; adjusted EBITDA guidance of $225–$240 million for the year.

• Capital expenditures planned at $45–$55 million, focused on technology investments.

• Dividend and share repurchase program discontinued; future cash flow to be directed toward debt reduction.

• Management expects cash flows from operations and available credit to be sufficient for capital expenditures, working capital, and debt service for at least the next twelve months.