Jack in the Box Inc. reported fourth‑quarter 2025 revenue of $326.19 million, a 6.6 % decline from the $327.9 million reported a year earlier. The figure beat the consensus estimate of $321.46 million by $4.73 million, or 1.47 %. The beat was driven by modest price increases and a slightly stronger performance in the Del Taco segment, which offset the broader decline in traffic across the company’s restaurant network.
Operating earnings per share fell to $0.30, missing the consensus estimate of $0.46 by $0.16, a 34.8 % miss. The shortfall reflects a 7.4 % drop in same‑store sales, a 1.9 % decline in restaurant‑level margin, and higher selling, general and administrative expenses driven by advertising, insurance and commodity inflation. The company’s diluted EPS of $1.12 for the year also fell from $1.16, underscoring the impact of the quarter’s margin compression.
Same‑store sales for the combined Jack in the Box and Del Taco brands fell 7.4 % year‑over‑year. Jack in the Box alone saw a 7.4 % decline, while Del Taco’s sales dropped 3.9 %. The weaker traffic was attributed to intensified competition, a shift toward lower‑margin menu items, and higher labor costs that eroded profitability on a per‑unit basis.
Restaurant‑level margin contracted to 16.1 % from 18.5 % in the prior year, a 2.4‑percentage‑point slide. The compression was driven by a 6.9 % rise in commodity inflation, a 100‑basis‑point increase in labor costs to 33.7 % of company‑owned sales, and higher selling and administrative spending that offset the benefit of menu price increases.
Management maintained its fiscal 2026 guidance, projecting adjusted EBITDA of $225 million to $240 million and a full‑year same‑store sales range of a 1 % decline to a 1 % increase. The guidance signals cautious optimism that the company’s rebuilding initiatives will gradually lift traffic and margins, but it also reflects ongoing uncertainty about the near‑term demand environment.
The quarter’s results were framed within the company’s “Jack on Track” plan, which includes the divestiture of the Del Taco brand for $115 million, the closure of 150‑200 underperforming Jack in the Box restaurants, and the suspension of the common‑stock dividend to prioritize debt reduction. The divestiture is intended to simplify the business, reduce debt, and free capital for core‑brand investments.
CEO Lance Tucker said the company remains focused on restoring momentum for the Jack in the Box brand. He highlighted the importance of the Del Taco sale as a step toward simplicity and emphasized the need to “get back to basics” with Jack’s Way operations and marketing initiatives that leverage the brand’s iconic equity.
Investors reacted negatively to the earnings miss and declining same‑store sales, but some expressed optimism about the company’s strategic restructuring and future guidance. The market’s mixed response underscores the tension between short‑term performance challenges and the potential upside of the “Jack on Track” plan.
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