JACK

Jack in the Box’s second quarter results drew a positive market reaction, despite revenue falling short of Wall Street’s expectations. Management pinpointed operational simplification and targeted marketing adjustments as key drivers. Interim CEO Mark King emphasized the need to focus on improving same-store sales and franchisee profitability, noting, “We have a lot of work to do.” The company attributed underperformance in part to a less successful promotional window, but highlighted quick pivots—including the early launch of the Philly Cheesesteak platform—that helped stabilize results. Management also underscored ongoing cost pressures from commodity inflation and restaurant closures as influencing profitability. Is now the time to buy JACK? Find out in our full research report (it’s free). Revenue: $257.7 million vs analyst estimates of $264.3 million (1.8% year-on-year decline, 2.5% miss) Adjusted EPS: $0.96 vs analyst estimates of $0.88 (8.6% beat) Adjusted EBITDA: $61.2 million vs analyst estimates of $54.79 million (23.8% margin, 11.7% beat) EBITDA guidance for the full year is $227.5 million at the midpoint, above analyst estimates of $224.9 million Operating Margin: 20.5%, up from 15.5% in the same quarter last year Locations: 2,115 at quarter end, down from 2,753 in the same quarter last year Same-Store Sales fell 1.1% year on year (-6.3% in the same quarter last year) Market Capitalization: $320.9 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brian Bittner (Oppenheimer) asked if positive same-store sales trends would persist throughout the year. Interim CEO Mark King anticipated results would be flat to slightly up, emphasizing the focus on balancing premium and value offerings. Ashley (Bank of America, for Sara Senatore) inquired about the impact of closures and real estate sales on franchise-level margins. CFO Dawn Hooper clarified that closures primarily drove margin pressure, with each closure impacting margins by about $80,000. Dennis Geiger (UBS) questioned which of the five new priorities would be easiest or most difficult to implement. King pointed to operational excellence as the most challenging due to the need for consistent execution across 2,100 locations. Brian Mullan (Piper Sandler) sought clarification on the slower-than-expected restaurant closure pace. Hooper explained that lease obligations are a key barrier, but a third-party firm is now assisting to accelerate the process. Logan Reich (RBC Capital Markets) asked about drivers of recent same-store sales improvement. Hooper highlighted the success of the Philly Cheesesteak promotion and the balanced approach to premium and value items as key contributors. In the coming quarters, our analysts will be monitoring (1) the rollout and guest reception of the updated menu and burger platform tests, (2) the pace and geographic distribution of restaurant closures as franchisees adjust portfolios, and (3) the early impact of refreshed branding and marketing campaigns. We will also track progress in making digital sales more profitable and the effectiveness of operational simplification initiatives. Jack in the Box currently trades at $16.78, down from $18.77 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. A Hot Ones partnership wasn’t quite spicy enough for Jack in the Box last quarter. The fast-food chain said that its same-store sales declined 1.1% last quarter, the company’s fiscal third, performance that was “below expectations,” Interim CEO Mark King told analysts on Wednesday.  Executives blamed in part a disappointing marketing partnership with the YouTube program “Hot Ones,” including a Munchie Meal lineup that included spicy items such as a Hot Ones Sriracha Curly Fry Burger.  The spiciness of some of the items proved too “polarizing,” executives said, and as such customers didn’t buy as many of the higher-priced burgers as expected, hurting sales. Jack in the Box quickly added less-spicy options and ended the promotion early, replacing it with a Philly Cheesesteak platform that has proven popular with customers.  The efforts stabilized same-store sales, which have turned positive in the current period.  That helped drive up Jack in the Box’s stock price in after-hours trading on Wednesday. “The sales trend is positive,” Dawn Hooper, Jack in the Box’s CFO, told analysts. “We’re seeing stronger checks and traffic.”  Still, last quarter was the ninth of the past 10 quarters in which Jack in the Box’s same-store sales have declined.  That has hurt franchisee profits. Jack in the Box has said previously that it has identified 150 to 200 restaurants that it believes franchisees should close, based on overall profitability. That effort has gone more slowly than the company anticipated. Operators closed 40 restaurants so far in the current fiscal year and another 10 to 20 locations are expected to close in the current period, which will give the brand 2,100 locations. But executives also acknowledged that they have hired a firm to help operators exit leases. And they said that same-store sales have fallen in every quarter since then, prompting the company to re-evaluate that closure program.  Executives believe that the closures could improve operator profitability, by ridding franchisees of lower-performing locations.  Inflation isn’t making that task any easier. Restaurant-level margins at the San Diego-based chain decreased to 17.6% in the third quarter, from 17.9% a year ago. Commodity inflation, driven by soaring beef costs, was 5.4% in the period.  “We must improve franchisee profitability,” King told analysts. “Stronger sales across the system support stronger restaurant-level profitability. Stronger profitability creates capacity for franchisees to invest in remodels and build new restaurants.” “Multiple quarters of same-store sales decline, coupled with continued inflation, have weighed on restaurant-level profitability, for us and our franchisees.” 

Interested in Jack In The Box Inc.? Here are five stocks we like better. Sales declined 1.1% year over year in fiscal Q3 as lower transactions outweighed menu price increases; weak performance from the polarizing Hot Ones promotion offset a strong start from Smashed Jack Sliders. Fourth-quarter sales are currently up in the low-single digits, helped by the Philly Cheesesteak platform. Interim CEO Mark King outlined five recovery priorities, including improving quality and value, simplifying operations and marketing, upgrading restaurant appearance, using customer research, and strengthening franchisee economics. The company is testing a new menu layout and burger platform, with a broader burger rollout planned for 2027. Jack in the Box reduced debt by $244 million since April 2025, lowering net leverage to 6.3 times, but plans to close another 10–20 restaurants in Q4 after 40 closures year to date. Fiscal 2026 adjusted EBITDA is now expected at $225 million–$230 million, while restaurant-level margins remain pressured by commodity inflation and underperforming markets such as Chicago. Short Sellers Are Piling Into Wingstop, But Analysts See Big Upside Jack In The Box (NASDAQ:JACK) reported a 1.1% decline in third-quarter fiscal 2026 same-store sales, as a drop in transactions more than offset menu price increases. Interim Chief Executive Officer Mark King said the company is focused on improving execution, restaurant quality, customer relevance and franchisee economics as it seeks to return to sustainable sales growth. Franchise same-store sales fell 1.2% during the quarter, while company-owned restaurant sales declined 0.9%. Chief Financial Officer Dawn Hooper said results varied substantially between marketing windows: the Smashed Jack Sliders platform began the quarter strongly, but the subsequent Hot Ones promotion failed to meet expectations. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat From Missteps to Momentum: Jack in the Box’s Comeback Plan Hooper said the Hot Ones products were “highly polarizing” and did not support the higher-priced side of the company’s promotional strategy, resulting in lower average checks and softer sales. In response, the company added less-spicy product options, replaced value-focused drive-thru promotional panels with higher-priced core offerings, and ended the marketing window early to pull forward the Philly Cheesesteak platform into the fourth quarter. According to Hooper, fourth-quarter-to-date same-store sales are positive in the low-single-digit range, supported by the Philly Cheesesteak offering, which has generated customer interest and a higher average check. King said he expects full-year fourth-quarter same-store sales to be “somewhere around flat to slightly up.” → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Jack in the Box Bottoms and the Rebound is on King, who became interim CEO several months ago, said his visits with franchisees, corporate employees and restaurant teams helped shape five priorities intended to support consistent same-store sales growth. Using customer research and feedback to guide menu, marketing and innovation decisions. Strengthening the brand’s quality and value positioning. Improving restaurant appearance and the overall guest experience. Making restaurants easier to operate by reducing complexity. Improving franchisee profitability and restaurant-level economics. The company plans to test an updated menu layout this fall designed to improve navigation and better communicate quality and value. It is also developing a new brand campaign under new Chief Marketing Officer Katelyn Zborowski, with lessons from the effort expected to influence broader marketing activity into calendar 2027. → First Solar’s Profit Engine Faces a New Policy Test in Washington King said Jack in the Box has been testing a new burger platform featuring premium ingredients, a juicier patty, updated preparation and presentation, and new packaging. The company expects to roll out its preferred burger platform systemwide in 2027. On restaurant appearance, the company announced a $2,000-per-restaurant contribution to support modest refresh projects. King said approximately 25% of franchise restaurants had signed up within a few weeks of the announcement. The refreshes are expected to occur over the next several quarters, while a wider remodel strategy may be considered longer term. The company has already reduced the number of promotions per marketing window from three to two during 2026 and plans to continue simplifying its marketing calendar for 2027. King said simplification is intended to improve focus and execution rather than reduce sales opportunities. Jack in the Box’s restaurant-level margin declined to 17.6% in the third quarter from 17.9% a year earlier. Food and packaging costs rose 70 basis points to 29.3% of sales, driven by 5.4% commodity inflation, including elevated beef costs. Hooper said commodity inflation as a percentage of sales is expected to ease in the fourth quarter, though beef costs are expected to remain high. Deflation in commodities including dairy is expected to offset some of that pressure. Labor costs fell 80 basis points to 33.7% of sales, primarily due to the comparison with elevated California unemployment taxes in the prior year. Occupancy and other costs increased 30 basis points, reflecting sales deleverage and higher rent. Franchise-level margin was $60.3 million, or 37.4% of franchise revenue, compared with $66.2 million, or 39.3%, a year earlier. Hooper attributed the decline to lower same-store sales, a lower restaurant count and higher bad-debt expense. GAAP diluted earnings per share from continuing operations declined to $1.08 from $1.19 a year earlier. Operating earnings per share were $0.96, compared with $1.04 in the prior-year period. Adjusted EBITDA increased to $61.2 million from $57.1 million, primarily due to lower general and administrative expense, partially offset by weaker sales and restaurant closures. The company said its JACK on Track plan continued to progress during the quarter. It completed a refinancing on June 23, fully repaying its August 2026 debt tranche and substantially reducing its February 2027 tranche. Before the refinancing, the company prepaid $110 million of August 2026 debt using excess corporate-owned life insurance funding and cash on hand. Since JACK on Track was announced in April 2025, Jack in the Box has reduced debt by $244 million. Total debt outstanding was $1.5 billion at quarter-end, and net debt to adjusted EBITDA leverage declined to 6.3 times from 6.9 times in the prior quarter. The company now expects approximately $81 million in interest expense for fiscal 2026. Jack in the Box has closed 40 restaurants year to date and expects to close another 10 to 20 in the fourth quarter. Hooper said closures have moved more slowly than anticipated because lease obligations can sometimes exceed the losses associated with continuing to operate an underperforming restaurant. The company has hired a third-party firm to help exit leases and expects the closure pace to accelerate. Management said elevated closures are expected to continue into 2027 and potentially into 2028 as it reassesses the overall closure program following additional quarters of same-store sales declines. Hooper noted that each franchise closure of an underperforming restaurant reduces franchise-level margin by roughly $80,000. For fiscal 2026, Jack in the Box now expects approximately 2,100 restaurants, restaurant-level margin of about 16.5%, franchise-level margin of roughly $265 million, and SG&A expense between $112 million and $115 million, excluding gains or losses from corporate-owned life insurance policies. The company expects adjusted EBITDA of $225 million to $230 million. Management also identified Chicago as a key factor in consolidated restaurant margins. Hooper said restaurant-level margin would have been 18.5% in the third quarter excluding Chicago. The company has installed a new vice president in the market and is focused on improving leadership, operating execution and controllable costs. While Jack in the Box has long intended to franchise the Chicago market, Hooper said the immediate priority is improving its performance. Jack in the Box (NASDAQ: JACK) is a publicly traded quick-service restaurant company best known for its Jack in the Box brand of fast-food restaurants. Founded in 1951 by Robert O. Peterson and headquartered in San Diego, California, the company has operated for decades as a franchisor and operator of drive-thru and dine-in restaurants. Its business model combines company-owned locations with franchise arrangements, and the company focuses on building brand recognition through menu innovation, marketing and service convenience. The company’s core offerings center on a broad fast-food menu that includes hamburgers (notably the Jumbo Jack), tacos, breakfast items, sandwiches, salads, sides and specialty limited-time items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Jack In The Box Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Same-Store Sales: Jack in the Box same-store sales decreased 1.1% in Q3, with franchise restaurants down 1.2% and company-owned down 0.9%. Restaurant-Level Margin: Decreased to 17.6% from 17.9% in the prior year. Food and Packaging Costs: 29.3% of sales, up 70 basis points year-over-year, driven by 5.4% commodity inflation. Labor Costs: 33.7% of sales, down 80 basis points from the prior year. Franchise-Level Margin: $60.3 million, or 37.4% of franchise revenues, compared to $66.2 million, or 39.3%, a year ago. SG&A: $17 million, or 6.6% of revenues, down from $20.6 million, or 7.8%, a year ago. Earnings from Continuing Operations: $21 million for Q3 2026, compared to $22.8 million in the prior year. GAAP Diluted EPS: $1.08 from continuing operations, versus $1.19 in the prior year. Operating EPS: $0.96 for the quarter, versus $1.04 in the prior year. Adjusted EBITDA: $61.2 million for the quarter, compared to $57.1 million in the prior year. Debt Reduction: Total debt decreased by $244 million since April 2025; total debt outstanding at quarter end was $1.5 billion. Net Debt to Adjusted EBITDA Leverage Ratio: 6.3 times, down from 6.9 times in the prior quarter. Interest Expense: Expected to be roughly $81 million for the year, including $1.3 million in debt extinguishment costs. Real Estate Sales: Generated $26.7 million of proceeds year to date. Restaurant Closures: Closed 40 restaurants year to date, with an additional 10 to 20 expected in Q4. Capital Expenditures: $44.1 million year to date through Q3. Fiscal 2026 Guidance: Restaurant count of approximately 2,100; restaurant-level margin of approximately 16.5%; franchise-level margin of approximately $265 million; SG&A between $112 million and $115 million; adjusted EBITDA between $225 million and $230 million. Warning! GuruFocus has detected 5 Warning Signs with JACK. Is JACK fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jack In The Box Inc (NASDAQ:JACK) reported positive same-store sales in the low single-digit range for Q4 to date, driven by a successful Philly Cheesesteak platform launch that balanced premium and value offerings. The company completed a significant debt refinancing in June, reducing total debt by $244 million since April 2025 and lowering its net debt to adjusted EBITDA leverage ratio from 6.9 times to 6.3 times. Management has identified five clear priorities to drive same-store sales growth, including a focus on customer insights, quality, restaurant experience, operational simplicity, and franchisee profitability. The company is testing a new premium burger platform with encouraging early results, which is expected to roll out system-wide in 2027, potentially enhancing its competitive position. A new restaurant refresh program, supported by a $2,000 per restaurant contribution from the company, has seen approximately 25% of franchise restaurants sign up within just a few weeks, indicating strong franchisee engagement. The company has reduced promotional complexity from three to two promotions per marketing window, aiming to improve operational execution and consistency across its 2,100 restaurants. Jack In The Box Inc (NASDAQ:JACK) reported a same-store sales decrease of 1.1% in Q3 2026, driven by a decline in transactions, with the Hot Ones promotion underperforming expectations due to polarizing products. Franchisee profitability remains under pressure due to multiple quarters of same-store sales declines and continued inflation, leading to expectations of accelerated restaurant closures extending into 2027 and potentially 2028. The company experienced elevated commodity inflation of 5.4% in the quarter, particularly in beef costs, which are expected to remain high despite some deflation in other commodities like dairy. Franchise-level margin decreased to $60.3 million from $66.2 million year-over-year, impacted by lower same-store sales, a reduced number of restaurants, and higher bad debt expense. The Chicago market continues to underperform, with AUVs running below company averages and impacting overall restaurant-level margins, which would have been 18.5% excluding this market versus the reported 17.6%. The company expects accelerated restaurant closures to continue, with 40 closures year-to-date and an additional 10-20 expected in Q4, reflecting ongoing challenges in franchisee profitability and lease obligations. Q: Can you help us separate the impact from closures and real estate sales from the underlying pressure in the franchise business? And as these actions normalize, what do you view as the right base for franchise-level margin going forward?A: Dawn Hooper (CFO) explained that the closure impact for the quarter was about $1.5 million, and the company has only sold about four restaurants to franchisees, so there is no material impact from real estate sales yet. The biggest drivers of the lower franchise-level margin are the closure program and lower sales. She noted that for each underperforming franchise closure, it impacts franchise-level margin by about $80,000. The margin is variable based on sales, so an uptick in sales will flow through to the franchise-level margin. Q: You talked a lot about strategies, simplifying the menu, and reducing marketing complexity. You're taking the promotional calendar down from three to two. That sounds like it makes sense, but it also sounds like that gives you less opportunities to drive the business potentially and create frequency and accelerate sales. Can you talk about the balance approach you're taking here between simplifying the business and driving traffic?A: Mark King (Interim CEO) stated that simplification is a positive to drive business because it allows the company to focus on what matters most. He acknowledged that part of the challenge in the past was having so many things to execute that they didn't do a great job on anything. The idea of simplification isn't to eliminate, but to focus, and the result of that should be positive. Q: Just wanted to ask on the store closure comments from earlier. Thanks for the update of your 4Q expectations, understood this might extend into fiscal '27. Could you just expand on that a little bit? What's the disconnect between what the pace you were expecting to see versus maybe the pace the franchisees are doing this?A: Dawn Hooper (CFO) explained that closures have occurred at a slower pace than expected due to lease obligations that remain once a restaurant is closed, which can sometimes be a larger burden than the loss incurred from operating. The company has hired a third-party firm to work on exiting leases and expects the closure rate to accelerate. Since the company has had four more quarters of same-store sales losses since announcing Jack on Track, they are re-evaluating the closure program as a whole, expecting elevated closures to continue into 2028. Q: I wanted to ask a high-level question about the five key priorities that you outlined to drive the consistent same-store sales growth. Just wondering if you could share a bit more on maybe where you think some of the lower-hanging fruit within those priorities lies, as well as maybe where there's a little bit more of a heavy lift among those priorities?A: Mark King (Interim CEO) stated that the five priorities came from a three-day offsite with franchise leadership, focusing on knowing the consumer better, quality, restaurant look and feel, and operational excellence. He identified ops excellence as the most challenging priority because it requires consistency across all 2,100 doors, with different back-of-house models in various restaurants. He noted that all priorities are underway, but the key is bringing more consistency to how the company delivers the experience to the consumer. Q: I just wanted to ask on the same-store sales improvement quarter to date, just if you can help us understand what the biggest drivers of those are and then what you think the biggest opportunities you guys have in the near term on same-store sales growth for Q4?A: Dawn Hooper (CFO) explained that the company entered Q4 with the Philly Cheesesteak window, which was pulled forward due to the underperformance of Hot Ones. This window provides a good balance between premium and value, with a strong center-of-the-plate offering combined with strong add-on products. As a result, sales trends are positive with stronger check and traffic. She also mentioned an exciting collaboration planned for the last two to three weeks of the year that should continue the momentum. Q: I wanted to go back to the visits you've made to stores and the discussions you've had with franchisees. I'm wondering, how are you giving those visits, looking at labor and staffing levels amongst the franchisee store base? Is that where they should be? Or is there further investment that has to be made in order to execute on a new marketing or product development program?A: Mark King (Interim CEO) stated that the labor model is fine at this point, and the issue is really sales, not labor. He noted that the company is running at a pretty low labor rate and that execution is not about more investment. The focus is on doing fundamentals and picking a few key areas to win in, which the franchisees and franchisor have aligned on together. He expressed confidence that the things they picked do not require more investment. Q: It looks like the competitors are upgrading their chicken and beverage platform. What are your thoughts and expectations on that front? Are you anticipating any major upgrades there?A: Mark King (Interim CEO) stated that beverages are a big opportunity, and the company has a very good beverage platform, especially with its shakes. He noted that chicken is the protein of choice right now and the company needs to innovate in that area. The focus will be on how these core products are presented visually on the menu board. Dawn Hooper (CFO) added that the company's Red Bull infusions are a strong example of beverage innovation, and they will continue to build on that platform. For chicken, they have improved quality over the past year but still have room on quality perception. Q: And on menu simplification, I just want to make sure I understand. Are you considering a noticeable decline in the SKU count as you zero in on what moves the needle for the customer?A: Mark King (Interim CEO) stated that there will be a small reduction in SKU count, but the menu simplification is not really about eliminating products. Some products will go because they carry no sales, but it's more about how the menu is laid out to make it easier for customers to navigate and pick their meals without feeling overwhelmed. He expressed excitement about the new menu layout, which is expected to roll out in 2027. Q: Can you just give an update on the Chicago market? You know, last call you talked about, started to see some positive signs on the top line, which is good for margins. And then related to that, do you want to own that market long term or find a partner?A: Dawn Hooper (CFO) For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Jack in the Box Inc. JACK posted operating earnings of 96 cents per share in the third quarter of fiscal 2026, down 7.7% from $1.04 a year ago, but beat the Zacks Consensus Estimate of 90 cents by 6.7%. Restaurant-level margin edged lower amid commodity inflation and a shift in restaurant mix. Janus Henderson Sustainable & Impact Core Bond ETF price-consensus-eps-surprise-chart | Janus Henderson Sustainable & Impact Core Bond ETF Quote Quarterly revenues fell 1.8% year over year to $257.7 million, missing the consensus mark of $260 million by 0.9%. Systemwide same-store sales declined 1.1%, as lower transactions were partly offset by higher pricing. Comparable sales remained negative, but the decline was smaller than in the prior-year quarter. Franchise same-store sales fell 1.2% versus a 7.2% decline a year ago, while company-operated comps decreased 0.9% compared with a 6.4% drop.At company-operated restaurants, average check rose 1%, while transactions declined 1.9%. Menu price increases were approximately 3.5% in the quarter. Systemwide restaurant sales fell to $944.1 million from $957.8 million a year earlier, with franchised restaurant sales decreasing to $847.8 million from $863.7 million. Company restaurant sales increased 2.3% to $96.3 million from $94.1 million. Franchise rental revenues declined 4.6% to $73 million, while franchise royalties and other revenues fell 3.4% to $43.1 million.Lower percentage rent, fewer franchised restaurants and lower lease termination fees weighed on rental revenues. Franchise-level margin was $60.4 million, or 37.4% of franchise revenues, versus $66.15 million, or 39.3%, a year ago, reflecting lower sales, fewer restaurants and higher bad debt expense. The system ended the fiscal third quarter with 2,115 restaurants after four openings and 17 closures. Restaurant-level margin was $16.99 million, or 17.6% of company restaurant sales, compared with $16.86 million, or 17.9%, a year earlier. Food and packaging costs rose to 29.3% of sales from 28.6%, as commodity inflation reached 5.4%, led by beef, tacos, produce and beverages.Payroll and employee benefit costs improved to 33.7% of sales from 34.5%, driven primarily by the rollover of additional federal unemployment taxes in California, partly offset by restaurant mix and 1.8% labor inflation. Occupancy and other costs rose 30 basis points to 19.3%, reflecting sales deleverage, higher rent and increased third-party delivery fees. Selling, general and administrative expenses declined to $17 million from $20.5 million. Lower legal costs from a litigation reversal and lower stock-based compensation due to forfeitures more than offset an unfavorable $4.20 million swing in company-owned life insurance policy values and higher incentive compensation.Other operating income, net, was $3.1 million versus other operating expense of $4.5 million a year ago, primarily backed by higher gains on real estate sales. Adjusted EBITDA increased to $61.20 million from $57.15 million. Debt management remained a key capital allocation priority. During the quarter, JACK prepaid $110 million of its Series 2019-1 Class A-2-II notes using excess company-owned life insurance funding and cash on hand. The company also issued $500 million of Series 2026-1 Class A-2 notes and used the proceeds to refinance portions of existing securitized debt.Total debt stood at $1.43 billion at quarter-end. Cash and restricted cash totaled $71.8 million. Year-to-date cash flow from operating activities was $56.6 million compared with $118.2 million a year earlier, while capital expenditures totaled $44.1 million. Management updated fiscal 2026 guidance to a restaurant count of approximately 2,100, including about 25 openings and 50 to 60 closures, most of them franchised. Company-owned restaurant-level margin is projected at approximately 16.5%, incorporating mid-single-digit commodity inflation and low-single-digit wage inflation.Franchise-level margin is expected to be approximately $265 million. SG&A is forecast at $112 million to $115 million, while adjusted EBITDA is projected at $225 million to $230 million. The company maintained its low-single-digit same-store sales decline outlook and capital expenditure guidance of $45 million to $55 million. Jack in the Box currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Retail-Wholesale sector have been discussed below.BJ's Restaurants, Inc. BJRI currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of 127.9%, on average. BJRI stock has surged 76.2% year to date. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for BJ's Restaurants’ 2026 sales and EPS indicates year-over-year growth of 4% each.Five Below, Inc. FIVE presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 70.1%, on average. FIVE stock has gained 29.6% year to date.The Zacks Consensus Estimate for Five Below’s 2027 sales and EPS indicates growth of 15.1% and 36.1%, respectively, from the year-ago period’s levels. FIGS, Inc. FIGS has a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average. FIGS stock has risen 26.8% year to date. The Zacks Consensus Estimate for FIGS’ 2026 sales and EPS indicates growth of 18.2% and 57.9%, respectively, from the prior-year levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Five Below, Inc. (FIVE) : Free Stock Analysis Report FIGS, Inc. (FIGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management identified that excessive operational complexity and promotional frequency diluted execution quality, leading to inconsistent guest experiences across the system. The Q3 same-store sales decline of 1.1% was primarily attributed to the 'Hot Ones' promotion, which management described as 'highly polarizing' and failing to support the higher end of the barbell strategy. Interim CEO Mark King emphasized a shift from corporate-led metrics to a 'listening and learning' approach, prioritizing franchisee profitability and direct guest feedback to guide innovation. Operational improvements are being driven by 'getting back to basics' through workshops focused on 'winning the shift' and reducing the number of promotions per marketing window from three to two. The brand is transitioning from a variety-led differentiation strategy to one focused on quality and value, including a system-wide rollout of a 'best burger' platform in 2027. Management noted that while the business model appears complex, the strategic priority is narrowing to the consistent delivery of hot, flavorful food and joyful service. Guidance for Q4 same-store sales assumes a flat to slightly positive trend, supported by the early launch of the Philly Cheesesteak platform which has shown higher average checks. The company plans to roll out a new menu layout in 2027 designed to improve navigation and better communicate quality and value, following a Q3 tactical shift where they replaced promotional panels with higher-priced products to limit drive-thru trade-down. Management expects accelerated restaurant closures to extend into 2027 and potentially 2028 as franchisees exit underperforming leases to stabilize portfolio margins. A new brand campaign led by the new CMO is expected to influence marketing efforts into calendar 2027, focusing on re-engaging lapsed customers through brand-specific rather than purely promotional digital content. The company is developing a comprehensive plan to stabilize franchisee economics, with specific details and 2027 guidance expected during the November earnings call. Completed a major refinancing on June 23, 2026, paying down the August 2026 debt tranche and reducing the net debt to adjusted EBITDA leverage ratio to 6.3x. Franchisee profitability remains under significant pressure due to multiple quarters of sales declines and 5.4% commodity inflation, particularly in beef costs. The Chicago market continues to weigh on consolidated results; excluding Chicago, restaurant-level margins would have been 18.5% compared to the reported 17.6%. Management is reevaluating the entire closure program, noting that lease obligations often exceed the losses of operating underperforming units, slowing the pace of exits. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that simplification is not about eliminating variety but about focusing execution on what matters most to the consumer. Reducing promotional windows from three to two is intended to ensure the team can execute core initiatives with greater consistency and higher quality. Each closure of an underperforming franchise restaurant impacts the franchise-level margin by approximately $80,000. The company has hired a third-party firm to accelerate lease exits, as the burden of remaining lease obligations has previously deterred franchisees from closing unprofitable sites. Digital sales reached 22% of total sales, but management acknowledged 'a lot of work to do' to ensure every transaction is profitable for franchisees. The strategy will shift from heavy discounting to brand-specific engagement and exciting product launches to improve digital channel margins. Chicago AUVs are currently running below company averages due to leadership and operational execution challenges. While the long-term plan remains to franchise the market, the current focus is strictly on stabilizing operations and improving margins under new regional leadership.

Jack in the Box same-store sales of (1.1%) Diluted EPS from continuing operations of $1.08 and Operating EPS of $0.96 SAN DIEGO,, August 12, 2026--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the third quarter ended July 5, 2026. "During my first months as interim CEO, I've spent significant time listening to our franchisees, meeting with our teams, and gaining a deeper understanding of the Jack in the Box business. With our refinancing now complete, we're fully focused on improving restaurant performance and executing against the priorities that will create the greatest long-term value. While we have more work ahead, I'm increasingly confident that our path forward is becoming clearer to strengthen franchisee profitability, improve execution, and build a stronger foundation for sustainable growth," said Mark King, Interim Chief Executive Officer of Jack in the Box Inc. Jack in the Box Performance Same-store sales declined 1.1% in the third quarter, comprised of franchise same-store sales decline of 1.2% and company-owned same-store sales decline of 0.9%. Sales performance resulted primarily from a decline in transactions, partially offset by an increase in price. Systemwide sales for the third quarter decreased 1.4%. Restaurant-Level Margin(1), a non-GAAP measure, was $17.0 million, or 17.6%, compared to $16.9 million, or 17.9%, a year ago driven primarily by commodity cost inflation and a change in the mix of restaurants, partially offset by increased price. Franchise-Level Margin(1), a non-GAAP measure, was $60.3 million, or 37.4%, a decrease from $66.2 million, or 39.3%, a year ago. The decrease was primarily due to lower sales driving lower rent and royalty revenue and a decrease in the number of restaurants as part of the 'JACK on Track' closure program. Bad debt expense was also higher versus the prior year quarter. Jack in the Box restaurant count decreased in the third quarter, with 4 restaurant openings and 17 restaurant closures. Jack in the Box Restaurant Counts: Total revenues decreased 1.8% to $257.7 million, compared to $262.4 million in the prior year quarter. The lower revenue is primarily the result of same-store sales declines, as well as a lower number of restaurants. The SG&A expense for the third quarter was $17.0 million, a decrease of $3.5 million compared to the prior year quarter. The decrease was due primarily to lower legal costs due to a litigation reversal and lower stock compensation due to forfeitures, partially offset by the fluctuation of $4.2 million in the cash surrender value of our COLI policies, as well as higher incentive compensation in the quarter. When excluding net COLI gains, G&A was 1.4% of systemwide sales. Other operating income, net for the third quarter was $3.1 million, a change of $7.6 million compared to other operating expense, net of $4.5 million in the prior year quarter. The change was primarily due to an increase in gains on the sale of real estate. Net earnings from continuing operations was $21.0 million for the third quarter of fiscal 2026. This is compared with net earnings from continuing operations of $22.8 million for the third quarter of the prior year. Adjusted EBITDA(3), a non-GAAP measure, was $61.2 million in the third quarter of fiscal 2026 compared with $57.1 million for the prior year quarter. The income tax provision reflects an effective tax rate of 36.9% in the third quarter of 2026 as compared to 20.9% in the prior year. The major components of the year-over-year increase in tax rate were additional tax expense from the establishment of valuation allowance on interest deduction limitations in the current year and non-deductible component of share-based compensation, while the prior year’s effective tax rate included additional tax benefit from non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans. The non-GAAP operating EPS tax rate for the third quarter of 2026 was 35.7%, which differed from the effective tax rate as it is without the impacts of the nondeductible component of share-based compensation. Third quarter diluted earnings per share from continuing operations was $1.08 in 2026, compared to $1.19 in the prior year quarter. Operating Earnings Per Share(2), a non-GAAP measure, was $0.96 in the third quarter of fiscal 2026 compared with $1.04 in the prior year quarter. Del Taco Discontinued Operations In October 2025, the Company entered into a definitive agreement to sell Del Taco Holdings Inc. ("Del Taco") to Yadav Enterprises, Inc., a California corporation and Anil Yadav, which was completed on December 22, 2025. As a result of the sale, operating results for Del Taco are included in discontinued operations for all periods presented. There were losses from discontinued operations, net of taxes of $0.9 million for the third quarter of 2026, compared with losses from discontinued operations, net of taxes of $0.8 million in the prior year quarter. Capital Allocation During the third quarter, the Company prepaid $110.0 million of its existing Series 2019-1 Class A-2-II Notes. The repayment was made using proceeds from withdrawing excess COLI funding as well as cash on hand. Additionally, during the third quarter, the Company completed the financing of $500 million of 2026-1 Class A-2 Notes, which have an anticipated repayment date of May 2031. As part of the refinancing transaction, the Company fully paid down the remainder of its 2019-1 Class A-2-II Notes which had an anticipated repayment date of August 2026, and also partially paid down its 2022-1 Class A-2-I Notes which have an anticipated repayment date of February 2027. The Company did not repurchase any shares of our common stock in the third quarter. As of the end of the third quarter, there was $175.0 million remaining under the Board-authorized stock buyback program. Guidance Updates The Company updated its guidance. The below reflects updated expectations for the fiscal year ending September 27, 2026. Jack in the Box Restaurant Count of approximately 2,100 Company-Owned Restaurant Level Margin of approximately 16.5% Franchise Level Margin of approximately $265 million SG&A of $112 to $115 million Adjusted EBITDA of $225 to $230 million The below guidance remains unchanged for the company's expectations for fiscal year ending September 27, 2026. Low Single Digit Same-Store Sales Decline vs. Fiscal Year 2025 Depreciation and Amortization of $45 to $50 million Capital Expenditures of $45 to $55 million, prioritizing sales-driving investments in technology As previously mentioned, the Company has discontinued its dividend and share repurchase program. Conference Call The Company will host a conference call for analysts and investors on Wednesday, August 12, 2026, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the Investors section of the Jack in the Box company website at http://investors.jackinthebox.com. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days. The call can be accessed via phone by dialing (888) 596-4144 and using ID 7573961. About Jack in the Box Inc. Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box®, one of the nation's largest hamburger chains with 2,115 restaurants across 25 states, Mexico and Guam. For more information, including franchising opportunities, visit www.jackinthebox.com. Category: Earnings Safe Harbor Statement This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as "anticipate," "believe," "estimate," "expect," "forecast," "goals," "guidance," "intend," "plan," "project," "may," "will," "would" and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the Company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the Company's brand; increased regulatory and legal complexities, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; stock market volatility. These and other factors are discussed in the Company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The Company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise. JACK IN THE BOX INC. AND SUBSIDIARIESSUPPLEMENTAL INFORMATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) DATA(Unaudited) The following table presents certain income and expense items included in our condensed consolidated statements of earnings (loss) as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding. JACK IN THE BOX INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS(Unaudited) To supplement the condensed consolidated financial statements, which are presented in accordance with GAAP, the Company uses the following non-GAAP measures: Adjusted Net Income, Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin. Management believes that these measurements, when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions. Operating Earnings Per Share Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding restructuring, integration and other, net COLI gains, pension and post-retirement benefit costs, impairment charges, gains on the sale of company-operated restaurants, gains on the sale of real estate to franchisees, excess tax shortfall from share-based compensation arrangements, loss on extinguishment of debt and other tax-related impacts. Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Operating Earnings Per Share provides investors with a meaningful supplement of the Company’s operating performance and period-over-period changes without regard to potential distortions. Below is a reconciliation of Non-GAAP Adjusted Net Income to the most directly comparable GAAP measure of net income. Also below is a reconciliation of Non-GAAP Operating Earnings Per Share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations: Adjusted EBITDA Adjusted EBITDA represents net earnings from continuing operations on a GAAP basis excluding income taxes, interest expense, net, gains on the sale of company-operated restaurants, other operating (income) expenses, net, depreciation and amortization, amortization of cloud computing costs, amortization of favorable and unfavorable leases and subleases, net, amortization of franchise tenant improvement allowances and other, net COLI gains, and pension and post-retirement benefit costs. Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Adjusted EBITDA is useful to investors to gain an understanding of the factors and trends affecting the Company's ongoing cash earnings, from which capital investments are made and debt is serviced. Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings from continuing operations (in thousands): Restaurant-Level Margin Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and selling, general, and administrative expenses. Certain other costs are also excluded, such as depreciation and amortization, pre-opening costs, other operating (income) expenses, net, and gains on the sale of company-operated restaurants. As such, Restaurant-Level Margin is not indicative of the overall results of the Company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The Company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-operated restaurants. Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings from continuing operations (in thousands): Franchise-Level Margin Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and selling, general, and administrative expenses. Certain other costs are also excluded, such as depreciation and amortization, pre-opening, other operating (income) expenses, net, and gains on the sale of company-operated restaurants. As such, Franchise-Level Margin is not indicative of the overall results of the Company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The Company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the Company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations. Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from continuing operations (in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260812600878/en/ Contacts Rachel WebbSenior Vice President, Investor [email protected] 858.522.4556

Jack In The Box (JACK) reported $257.66 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 22.6%. EPS of $0.96 for the same period compares to $1.02 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $260.04 million, representing a surprise of -0.92%. The company delivered an EPS surprise of +6.67%, with the consensus EPS estimate being $0.90. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Jack In The Box performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Jack in the Box - Restaurant Counts (EOP) - Franchised: 1,966 versus the three-analyst average estimate of 1,958. Jack in the Box - Restaurant Counts (EOP) - Total: 2,115 compared to the 2,106 average estimate based on three analysts. Jack in the Box Same-Store Sales (YoY change) - Company: -0.9% compared to the -0.1% average estimate based on three analysts. Jack in the Box - New Restaurant - Franchise: 4 versus 3 estimated by three analysts on average. Jack in the Box systemwide sales - Company-operated restaurant sales: $96.27 million compared to the $98.03 million average estimate based on three analysts. Jack in the Box systemwide sales - Franchised restaurant sales: $847.84 million versus the three-analyst average estimate of $849.71 million. Jack in the Box - Restaurant Counts (EOP) - Company: 149 versus the three-analyst average estimate of 148. Revenues- Franchise rental revenues: $73.02 million versus the three-analyst average estimate of $72.8 million. The reported number represents a year-over-year change of -14.2%. Revenues- Franchise contributions for advertising and other services: $45.29 million compared to the $45.45 million average estimate based on three analysts. The reported number represents a change of -16.4% year over year. Revenues- Franchise (Franchise rental + Franchise royalties and other + Franchise contributions): $161.39 million versus the three-analyst average estimate of $162.07 million. The reported number represents a year-over-year change of +17%. Revenues- Franchise royalties and other: $43.08 million versus the three-analyst average estimate of $43.82 million. The reported number represents a year-over-year change of -18.4%. Revenues- Company restaurant sales: $96.27 million compared to the $98.03 million average estimate based on three analysts. The reported number represents a change of -31.7% year over year. View all Key Company Metrics for Jack In The Box here>>> Shares of Jack In The Box have returned +17.5% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Sustainable & Impact Core Bond ETF (JACK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research