JACK IN THE BOX INC (JACK): Results of Operations and Financial Condition
JACK IN THE BOX INC (JACK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contact: Rachel Webb Senior Vice President, Investor Relations rachel.webb@jackinthebox.com 858.522.4556 Jack in the Box Inc. Reports Third Quarter 2026 Earnings Jack in the Box same-store sales of (1.1%) Diluted EPS from continuing operations of $1.08 and Operating
How this was made
The 30-second read
Why it matters
Traders can update models for JACK’s FY outlook using the guidance update, while also reassessing near-term risk from declining same-store sales, higher bad debt, and margin compression drivers.
Market read
Fresh earnings and guidance details, plus refinancing and capital allocation, provide a concrete basis for repricing JACK’s near-term earnings trajectory.
What to watch
The effective tax rate jump and COLI-related cash surrender value fluctuations can distort GAAP vs non-GAAP comparisons; franchise-level margin and restaurant closures may matter more than headline EPS.
Jack in the Box Inc. Reports Third Quarter 2026 Earnings
Same-store sales, systemwide sales, total revenues, continuing-operations earnings and both GAAP and non-GAAP EPS declined from the prior-year quarter, while adjusted EBITDA increased and the company completed a refinancing.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Jack in the Box company same-store salesother | (0.9 %) | – | – |
| Jack in the Box franchise same-store salesother | (1.2 %) | – | – |
| Jack in the Box system same-store salesother | (1.1 %) | – | – |
| Systemwide salesother | decreased 1.4% | – | decreased 1.4% |
| Restaurant-Level Marginnon-GAAP | $17.0 million, or 17.6% | – | – |
| Franchise-Level Marginnon-GAAP | $60.3 million, or 37.4% | – | – |
| Total revenuesGAAP | $257.7 million | – | decreased 1.8% |
| SG&A expenseGAAP | $17.0 million | – | a decrease of $3.5 million |
| G&A excluding selling and advertising and net COLI gainsother | 1.4% of systemwide sales | – | – |
| Other operating income, netGAAP | $3.1 million | – | a change of $7.6 million |
| Net earnings from continuing operationsGAAP | $21.0 million | – | – |
| Adjusted EBITDAnon-GAAP | $61.2 million | – | – |
| Effective tax rateGAAP | 36.9% | – | – |
| Non-GAAP operating EPS tax ratenon-GAAP | 35.7% | – | – |
| Diluted earnings per share from continuing operationsGAAP | $1.08 | – | – |
| Operating Earnings Per Sharenon-GAAP | $0.96 | – | – |
| Losses from discontinued operations, net of taxesGAAP | $0.9 million | – | – |
| Jack in the Box restaurant count at end of Q3other | 2,115 | (13) | – |
| Company restaurant count at end of Q3other | 149 | – | – |
| Franchise restaurant count at end of Q3other | 1,966 | (13) | – |
| New Jack in the Box restaurantsother | 4 | – | – |
| Closed Jack in the Box restaurantsother | (17) | – | – |
| Franchise QTD Net Restaurant Change %other | (0.7) % | – | – |
| Total QTD Net Restaurant Change %other | (0.6) % | – | – |
fiscal year ending September 27, 2026 outlook
- Operating expensesSG&A of $112 to $115 million
- NoteJack in the Box Restaurant Count of approximately 2,100
- Noteapproximately 25 new restaurant openings and approximately 50 to 60 closures, most of which will be franchise restaurants
- NoteCompany-Owned Restaurant Level Margin of approximately 16.5%
- Notemid-single-digit commodity inflation and low-single-digit wage inflation
- NoteFranchise Level Margin of approximately $265 million
- NoteAdjusted EBITDA of $225 to $230 million
- NoteLow Single Digit Same-Store Sales Decline vs. Fiscal Year 2025
- NoteDepreciation and Amortization of $45 to $50 million
- NoteCapital Expenditures of $45 to $55 million, prioritizing sales-driving investments in technology
- Notethe Company has discontinued its dividend and share repurchase program
Capital returns
- 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.
- The Company has discontinued its dividend and share repurchase program.
What drove it
- Sales performance resulted primarily from a decline in transactions, partially offset by an increase in price.
- Lower revenue was primarily the result of same-store sales declines, as well as a lower number of restaurants.
- Restaurant-Level Margin was driven primarily by commodity cost inflation and a change in the mix of restaurants, partially offset by increased price.
- The increase in adjusted EBITDA was reported alongside lower SG&A expense and other operating income, net of $3.1 million.
- Other operating income, net changed primarily due to an increase in gains on the sale of real estate.
Concerns
- System same-store sales declined 1.1%, including declines of 1.2% at franchise restaurants and 0.9% at company-owned restaurants.
- Franchise-Level Margin declined to $60.3 million, or 37.4%, from $66.2 million, or 39.3%, due primarily to lower sales, a lower number of restaurants and higher bad debt expense.
- The effective tax rate increased to 36.9% from 20.9%, reflecting a valuation allowance on interest deduction limitations and the nondeductible component of share-based compensation.
- The restaurant base declined by 13 restaurants during the quarter, including 17 closures and 4 openings.
- Management said visibility into timing is limited for elements of the JACK on Track plan that influence Franchise Level Margin.
What to watch
- Whether transaction trends improve as the company pursues restaurant-performance and franchisee-profitability priorities.
- Execution of approximately 25 new restaurant openings and approximately 50 to 60 closures under the fiscal 2026 restaurant-count outlook.
- Company-Owned Restaurant Level Margin of approximately 16.5% amid mid-single-digit commodity inflation and low-single-digit wage inflation.
- Franchise Level Margin of approximately $265 million as the JACK on Track plan, block closures and real-estate sales progress.
- Adjusted EBITDA of $225 to $230 million and SG&A of $112 to $115 million for fiscal 2026.
Balance sheet and cash flow
- 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.
- 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.
Analysis
Jack in the Box reported a mixed third quarter. System same-store sales declined 1.1%, with franchise same-store sales down 1.2% and company-owned same-store sales down 0.9%. Management attributed sales performance primarily to lower transactions, partially offset by higher price. Systemwide sales decreased 1.4%, while total revenues decreased 1.8% to $257.7 million from $262.4 million, reflecting same-store sales declines and a lower restaurant count.
Restaurant economics faced pressure. Restaurant-Level Margin was $17.0 million, or 17.6%, compared with $16.9 million, or 17.9%, a year ago, with commodity inflation and restaurant mix partly offset by price. Franchise-Level Margin fell to $60.3 million, or 37.4%, from $66.2 million, or 39.3%, as lower sales reduced rent and royalty revenue, the JACK on Track closure program reduced restaurant count, and bad debt expense increased.
Reported earnings also declined. Net earnings from continuing operations were $21.0 million versus $22.8 million, diluted earnings per share from continuing operations were $1.08 versus $1.19, and Operating Earnings Per Share was $0.96 versus $1.04. The effective tax rate rose to 36.9% from 20.9%, driven by a valuation allowance on interest deduction limitations and the nondeductible component of share-based compensation. Adjusted EBITDA increased to $61.2 million from $57.1 million, while lower legal costs from a litigation reversal and lower stock compensation due to forfeitures contributed to a $3.5 million reduction in SG&A expense.
The store base continued to contract, ending the quarter with 2,115 restaurants versus 2,128 at Q2 and 2,168 a year ago. The quarter included 4 openings and 17 closures, all of the net decline occurring in the franchise base. Management's updated fiscal 2026 outlook calls for approximately 2,100 restaurants, approximately 25 openings and approximately 50 to 60 closures, most of which are expected to be franchise restaurants.
Capital allocation centered on refinancing and debt repayment rather than shareholder distributions. The company prepaid $110.0 million of Series 2019-1 Class A-2-II Notes and completed $500 million of 2026-1 Class A-2 Notes financing with an anticipated repayment date of May 2031. It repurchased no common shares during the quarter and stated that it has discontinued its dividend and share repurchase program. The guide retains a low single digit same-store sales decline versus fiscal 2025, while updated targets include approximately 16.5% Company-Owned Restaurant Level Margin, approximately $265 million of Franchise Level Margin, $112 to $115 million of SG&A and $225 to $230 million of Adjusted EBITDA.
Management, verbatim
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.
Mark King, Interim Chief Executive Officer of Jack in the Box Inc.
Not in the filing
stated, not guessed- GAAP gross profit and gross margin
- GAAP operating income
- GAAP net earnings including discontinued operations
- Total diluted earnings per share including discontinued operations
- Segment revenue for company-owned restaurants and franchise restaurants
- Prior-quarter total revenue, margins, earnings, EPS, adjusted EBITDA and tax rates
- Operating cash flow
- Free cash flow
- Cash balance
- Total debt balance
- Fiscal 2026 revenue guidance
- Fiscal 2026 tax-rate guidance
- Previous-quarter outlook for comparison
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with the company’s Q3 2026 earnings release (fiscal quarter ended July 5, 2026) and related guidance updates.
Ticker impact
Jack in the Box reported Q3 results, with same-store sales down 1.1%, diluted EPS from continuing operations $1.08, and updated FY guidance.
Likely choppy-to-negative near term if investors focus on declining same-store sales and EPS, partially offset by refinancing completion and guidance.
The filing provides fresh, decision-relevant datapoints: Q3 EPS and margin drivers, effective tax rate jump, and explicit FY restaurant count and margin guidance (partially shown).
Market effects
Quick-service restaurant peers may see read-across on franchise same-store trends and commodity-cost/mix impacts.
Primarily US consumer and restaurant franchise sentiment; limited direct regional spillover indicated.
Low, as the disclosure is company-specific and not tied to global macro or cross-border events.
Counterpoint
Investors may look past the transaction decline by focusing on price increases and adjusted EBITDA improvement versus the prior year.
Key entities
- companyJack in the Box Inc.
NASDAQ-listed QSR operator reporting Q3 2026 results, refinancing completion, capital allocation, and updated FY guidance.
- personMark King
Interim CEO quoted on priorities after refinancing completion.
- companyDel Taco Holdings Inc.
Sold in Dec 2025; results are presented in discontinued operations.
