Jack in the Box announced on January 10 2026 that it has repaid $105 million of its Series 2019‑1 4.476% fixed‑rate senior secured notes, Class A‑2‑II, a move that reduces the company’s long‑term debt load and is a key component of the “JACK on Track” plan to strengthen the balance sheet and free cash flow for future growth initiatives.
The repayment was funded from the company’s available cash and targeted real‑estate sales. By lowering its debt, Jack in the Box moves closer to its goal of reducing net debt to 5× EBITDA by the end of 2026. The company’s most recent financial statements show a net‑debt‑to‑EBITDA ratio of roughly 6×, so the $105 million reduction brings the ratio nearer to the target and improves leverage metrics that could lower future borrowing costs.
The debt repayment is closely linked to the December 2025 divestiture of Del Taco Holdings. Proceeds of about $115 million from that sale were earmarked in part to retire the Series 2019‑1 notes, supporting the company’s shift toward an asset‑light model and simplifying its operations after the Del Taco exit.
CEO Lance Tucker said the repayment “reflects the meaningful progress we continue to make toward strengthening our balance sheet and positioning the Company for sustainable growth under ‘JACK on Track.’” The comment underscores management’s confidence that the deleveraging will free cash flow for future expansion and operational improvements.
Analysts have adjusted their price targets in response to the repayment, with some lowering and others raising them, reflecting a mix of optimism about the company’s turnaround and caution about ongoing operational challenges. The adjustment signals that the market is paying close attention to the company’s debt‑reduction trajectory and its impact on long‑term financial health.
By cutting interest expense and improving leverage, the repayment provides a buffer against market volatility and positions Jack in the Box to pursue growth initiatives with greater financial flexibility. The move also signals to investors that the company is executing its strategic plan and strengthening its competitive position in a challenging restaurant environment.
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