This article first appeared on GuruFocus.

System Same-Store Sales Decline: Jack in the Box declined 7.4%, with franchise same-store sales down 7.6% and company-owned same-store sales down 5.3%.

Restaurant Openings and Closures: 15 Jack restaurant openings and 47 closures, ending the year with 2,136 restaurants.

Restaurant Level Margin: Decreased by 240 basis points to 16.1% for Jack in the Box.

Commodity Inflation: 6.9% inflation, with beef as the largest inflationary category.

Labor Costs: Increased 100 basis points to 33.7% of company-owned sales.

Franchise Level Margin: $62.6 million or 38.9% of franchise revenues, down from $70.9 million or 40.4% a year ago.

Consolidated Adjusted EBITDA: $45.6 million, down from $65.5 million in the prior year.

GAAP Diluted Earnings Per Share: $0.30 for the quarter compared to $1.12 in the prior year.

Cash Flows from Operations: $33.7 million for the quarter and $162.3 million for the full fiscal year.

Total Debt: $1.7 billion with a net debt to adjusted EBITDA leverage ratio of 6 times.

Capital Expenditures: $17.9 million for the quarter.

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Release Date: November 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Jack In The Box Inc (NASDAQ:JACK) announced the pending divestiture of Del Taco, allowing the company to focus on strengthening its core brand.

The company implemented a successful barbell promotional strategy, featuring value offers like the $4.99 Bonus Jack combo, which improved transactions throughout the quarter.

Jack In The Box Inc (NASDAQ:JACK) is making strides in operational excellence by restructuring field teams to provide more real-time coaching and retraining the entire system.

The company is reinvesting in culinary innovation with a new executive chef, aiming to elevate food quality and craveability.

Jack In The Box Inc (NASDAQ:JACK) plans to execute a comprehensive reimage program to modernize restaurants and drive stronger volumes.

Jack In The Box Inc (NASDAQ:JACK) reported a 7.4% decline in system same-store sales for the fourth quarter, with franchise sales decreasing 7.6% and company-owned sales down 5.3%.

The company's restaurant level margin decreased by 240 basis points to 16.1%, driven by sales deleverage, commodity inflation, and elevated labor costs.

Labor costs as a percentage of company-owned sales increased due to elevated labor at new restaurant openings in Chicago.

Jack In The Box Inc (NASDAQ:JACK) faces competitive pressure in the quick-service restaurant category, with consumers being careful about spending.

The company anticipates a rebuilding year in 2026, with expectations of continued pressure on same-store sales in the first quarter.

Q: Can you discuss the main drivers of the anticipated improvement in same-store sales throughout 2026? A: Lance Tucker, CEO, explained that the improvement is expected due to several factors, including the 75th anniversary promotions, softer comparisons in the second half of the year, ongoing value strategy adjustments, operational improvements, and tech modernization efforts. Additionally, new culinary innovations are anticipated to contribute positively.

Q: What assumptions are included in the EBITDA guidance regarding the JACK on Track plan? A: Lance Tucker, CEO, stated that the guidance includes assumptions for 60 to 100 closures and real estate sales between $50 million and $70 million. These factors are expected to impact the EBITDA guidance as they unfold.

Q: How are you addressing franchisee sentiment given the competitive environment and current financial pressures? A: Lance Tucker, CEO, acknowledged the challenges but emphasized that franchisees are aligned with the company's goals. They are supportive of the JACK on Track plan and are willing to invest in the brand's future, although some may need more time to reinvest due to financial pressures.

Q: What are the expectations for the reimage program, and how will it be funded? A: Lance Tucker, CEO, mentioned that a comprehensive reimage program is planned for the end of the year, with a focus on affordability and immediate brand uplift. The company is considering a mini refresh for some locations to provide immediate benefits while planning for a broader reimage.

Q: How are you addressing the perception of value and quality among consumers? A: Lance Tucker, CEO, noted that value scores have improved slightly, and the company is focusing on consistent value offerings and operational improvements to enhance quality perception. The strategy includes maintaining a barbell approach to pricing and ensuring a consistent guest experience.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.