Jack in the Box shares fall as revenue misses estimates

Published 14/05/2025, 21:18
Jack in the Box shares fall as revenue misses estimates

Investing.com -- Jack in the Box Inc. (NASDAQ:JACK) reported second-quarter earnings that beat analyst expectations, but revenue fell short of estimates, sending shares down 3.6% in after-hours trading.

The fast-food chain operator posted adjusted earnings per share of $1.20, surpassing the analyst consensus of $1.07. However, revenue for the quarter came in at $336.7 million, missing the expected $345.76 million and declining 7.8% YoY.

Same-store sales decreased 4.4% at Jack in the Box locations and 3.6% at Del Taco restaurants during the quarter. The company cited a difficult industry-wide macro environment for the weak sales performance.

"I am encouraged by our marketing plans in the back half of 2025, which we expect to energize sales despite the difficult industry-wide macro environment in which we continue to operate," said Lance Tucker, Jack in the Box Chief Executive Officer.

Jack in the Box’s restaurant-level margin, a key profitability metric, fell to 19.6% from 23.6% a year ago, driven by lower sales, continued inflation, and higher operating costs. Del Taco’s restaurant-level margin also declined to 12.8% from 16.8% in the prior year period.

The company recognized a non-cash goodwill and intangible impairment charge of $203.2 million related to Del Taco, resulting in a diluted loss per share of $7.47 for the quarter.

Jack in the Box maintained its previously announced guidance for the full year. The company did not repurchase any shares during the quarter and has $175 million remaining under its authorized stock buyback program.

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