Jack in the Box Inc. Reports Fourth Quarter and Full-Year 2025 Earnings

• Jack in the Box same-store sales of (7.4%) in Q4 2025, (4.2%) for FY 2025

• Del Taco same-store sales of (3.9%) in Q4 2025, (3.7%) for FY 2025

• Diluted earnings per share of $0.30 and Operating EPS of $0.30

Fourth Quarter Results

SAN DIEGO--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the fourth quarter, ended September 28, 2025.

“While performance in the fourth quarter did not meet our expectations, we remain focused on restoring positive momentum for the Jack in the Box brand,” said Lance Tucker, Jack in the Box Chief Executive Officer. “As we enter our 75th anniversary, we're working hard to give our guests more compelling reasons to choose Jack in the Box by getting back to basics with our Jack's Way operations and marketing initiatives that leverage our iconic brand equities. As we work with urgency to strengthen our operating results over the coming quarters, I am optimistic that the improvements to our everyday execution combined with the structural changes from our Jack on Track plan will quickly lead to much improved results and increased shareholder value.”

Jack in the Box Performance

Same-store sales decreased 7.4% in the fourth quarter of 2025, comprised of a decrease in company-operated same-store sales of 5.3% and a decrease in franchise same-store sales of 7.6%. Sales performance was driven by a decrease in transactions and unfavorable menu mix, which was partially offset by menu price increases. Systemwide sales(1) for the fourth quarter decreased 7.2%.

Restaurant-Level Margin(2), a non-GAAP measure, was 16.1% for the fourth quarter, a decrease from 18.5% in the prior year quarter. Restaurant-Level Margin(2) includes inefficiencies associated with entry into the Chicago market, where the company opened 8 restaurants within the quarter, which the company expects to normalize as the market matures. The decrease was further driven by transaction declines and inflationary increases in commodities, partially offset by menu price increases and a reversal of additional FUTA taxes in California.

Franchise-Level Margin(2), a non-GAAP measure, was 38.9% for the fourth quarter, a decrease from 40.4% a year ago. The decrease was driven primarily by lower franchise same-store sales and rolling over the benefit of franchise lease termination income in the prior year, partially offset by early termination fees due to closures as part of the closure program.

Jack in the Box opened 15 new restaurants, and closed 47 restaurants during the fourth quarter. Of these, 38 of the 47 closures were part of the “JACK on Track” block restaurant closure program. For fiscal year 2025, Jack in the Box opened 31 new restaurants, and closed 86 restaurants.

Same-store sales decreased 3.9% in the fourth quarter of 2025, comprised of franchise same-store sales decrease of 4.2% and company-operated same-store sales decrease of 3.1%. Sales performance was driven by decreases in transactions and unfavorable mix, which was partially offset by menu price increases. Systemwide sales(1) for the fourth quarter of 2025 decreased 5.4%.

Restaurant-Level Margin(2), a non-GAAP measure, was 6.8% for the fourth quarter, a decrease from 9.3% in the prior year period. This decrease was primarily driven by the impact of opening the Colorado market, combined with transaction declines, as well as inflationary increases in commodities, partially offset by menu price increases and a reversal of additional FUTA taxes in California.

Franchise-Level Margin(2), a non-GAAP measure, was 30.0% for the fourth quarter, an increase from 26.5% one year ago. The increase was driven by a lease buyout and early termination penalties, partially offset by lower sales and higher bad debt expense.

Del Taco had 4 new restaurant openings and 13 restaurant closures during the fourth quarter. For fiscal year 2025, Del Taco opened 14 new restaurants and closed 32.

Total revenues decreased 6.6% in the fourth quarter of 2025 to $326.2 million, as compared to $349.3 million in the prior year fourth quarter.

Company-wide SG&A expense for the fourth quarter of 2025 was $36.6 million, an increase of $6.6 million compared to the prior year fourth quarter, driven primarily by an incremental contribution of $5.5 million to Jack in the Box brand advertising, as well as higher insurance costs and a decrease in COLI gains. This was partially offset by lower share-based compensation and incentive compensation.

Pre-opening costs increased $2.6 million in the fourth quarter compared to the prior year quarter, driven by new restaurant opening activity in certain Colorado, Illinois and Utah markets.

The effective tax rate was (30.4%) in the fourth quarter of 2025, which was due to an income tax benefit recorded in the quarter primarily attributable to incremental non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans and favorable state audit accruals recorded in the quarter. The non-GAAP operating EPS tax rate for the fourth quarter of 2025 was 11.9% primarily due to favorable state audit accruals recorded in the quarter.

Adjusted EBITDA(4), was $45.6 million in the fourth quarter of fiscal 2025 compared with $65.5 million for the prior year quarter.

Net earnings was $5.8 million for the fourth quarter of 2025, compared with $21.9 million for the prior year fourth quarter.

Diluted earnings per share was $0.30 for the fourth quarter of 2025 as compared with $1.12 in the prior year fourth quarter. Operating Earnings Per Share(3) was $0.30 in the fourth quarter compared with $1.16 in the prior year fourth quarter.

(1) Systemwide sales include company and franchised restaurant sales. (2) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings from operations, the most comparable GAAP measure, in the attachment to this release.

See "Reconciliation of Non-GAAP Measurements to GAAP Results." (3) Operating Earnings Per Share represents diluted earnings per share on a GAAP basis excluding certain amounts. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

Operating earnings per share may not add due to rounding. (4) Adjusted EBITDA represents net earnings on a GAAP basis excluding certain amounts. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

The company did not repurchase any shares of common stock in the fourth quarter of 2025. For the full year 2025, the company repurchased 0.1 million shares, for an aggregate cost of $5.0 million. As of September 28, 2025, there was $175.0 million remaining amount under share repurchase programs authorized by the Board of Directors which does not expire. As previously announced, Jack in the Box discontinued its dividend.

Fiscal Year 2026 Guidance

The following guidance and underlying assumptions reflect the company’s current expectations for the fiscal year ending September 27, 2026. All guidance represents the standalone Jack in the Box brand unless otherwise noted. Del Taco results will be reflected in discontinued operations for fiscal year 2026. As the company restructures following the sale of Del Taco, the company expects variability across quarters, as indicated below:

Fiscal Year 2026 Company-wide Guidance

• Jack in the Box Restaurant Count of 2,050 to 2,100 This includes approximately 20 new restaurant openings and approximately 50 to 100 closures, most of which will be franchise restaurants

• Same Store Sales of -1% to +1% vs. Fiscal Year 2025 The company expects first-quarter results to remain pressured, with sequential improvement anticipated over the balance of fiscal year 2026

• Company-Owned Restaurant Level Margin of 17 to 18% This includes mid-single-digit commodity inflation and low-single-digit wage inflation

• Franchise Level Margin of $275 to $290 million As the company continues to execute its “Jack on Track” plan, which includes a block closure program and selling real estate, both of which influence Franchise Level Margin, visibility into timing is limited.

• SG&A of $125 to $135 million G&A, excluding selling and advertising, is expected to be approximately 2.5% of systemwide sales. This will remain elevated for the first half of the year and then improve into the back half of the year as the company restructures following the sale of Del Taco This does not include any offset from income as part of the Transition Services Agreement (“TSA Income”) that is expected to be received as part of the Del Taco divestiture

• Depreciation and Amortization of $45 to $50 million

• Adjusted EBITDA of $225 to $240 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.

The company will host a conference call for analysts and investors on Wednesday, November 19, 2025, 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 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.

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 approximately 2,135 restaurants across 21 states, and Del Taco®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 575 restaurants across 18 states. For more information on both brands, including franchising opportunities, visit www.jackinthebox.com and www.deltaco.com.

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; and stock market volatility. This press release also contains forward-looking statements regarding the anticipated consummation of the proposed sale of Del Taco and the expected timing thereof.

These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. There can be no assurance that the proposed sale of Del Taco will be completed as currently contemplated or at all. 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 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.

To supplement the consolidated financial statements, which are presented in accordance with GAAP, the company uses the following non-GAAP measures: 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 represents diluted earnings per share on a GAAP basis excluding restructuring, integration and strategic initiatives, net COLI (gains) losses, pension and post-retirement benefit costs, impairment of goodwill and intangible assets, restaurant impairment charges, gains on the sale of company-operated restaurants, gain on acquisition of restaurants, gains on the sale of real estate to franchisees, excess tax shortfall from share-based compensation arrangements, and the tax-related impacts of the above adjustments.

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 (loss) per share:

Adjusted EBITDA represents net earnings (loss) on a GAAP basis excluding income taxes, interest expense, net, gains on the sale of company-operated restaurants, other operating expenses, net, impairment of goodwill and intangible assets, depreciation and amortization, amortization of cloud computing costs, amortization of favorable and unfavorable leases and subleases, net, amortization of franchise tenant improvement allowances and incentives, net COLI (gains) losses, 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 (loss) (in thousands):

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 certain costs, such as selling, general, and administrative expenses, depreciation and amortization, pre-opening costs, impairment of goodwill and intangible assets, other operating expenses, net, gains or losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs. 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 (loss) from operations, for the 12-weeks ended (in thousands):

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 operations, for the 12-weeks ended (in thousands):