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SAN DIEGO - Jack in the Box Inc. (NASDAQ:JACK) shares fell 8% after the fast-food chain reported fourth-quarter earnings that fell short of analyst expectations, with same-store sales declining significantly across both its brands.
The company reported adjusted earnings per share of $0.30 for the fourth quarter, missing analyst estimates of $0.46. Revenue came in at $326.2 million, slightly above the consensus estimate of $324.77 million, but down 6.6% compared to the same period last year.
Jack in the Box’s same-store sales decreased 7.4% in the fourth quarter, with company-operated locations down 5.3% and franchise locations down 7.6%. Del Taco, which the company is divesting, saw system-wide same-store sales decline 3.9%.
"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."
Restaurant-Level Margin for Jack in the Box was 16.1%, down from 18.5% in the prior year quarter, partly due to inefficiencies associated with expansion into the Chicago market, where the company opened 8 restaurants during the quarter.
For fiscal year 2026, Jack in the Box expects same-store sales between -1% and +1%, with first-quarter results expected to remain under pressure before sequential improvement throughout the year. The company plans to open approximately 20 new restaurants while closing 50 to 100 locations, most of which will be franchise restaurants.
The company has discontinued its dividend and share repurchase program as it restructures following the planned sale of Del Taco, which will be reflected in discontinued operations for fiscal year 2026.
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