Jack in the Box Inc. (JACK) Earnings
Jack in the Box Inc. is expected to report next earnings on August 5, 2026 (in NaN days), with a consensus EPS estimate of $0.90. JACK has beaten EPS estimates in 5 of its last 12 reported quarters (average surprise -8.7% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $0.74 | $0.76 | +2.7% | $254M | -0.9% |
| Feb 18, 2026 | $1.10 | $1.00 | -9.1% | $350M | +34.8% |
| Nov 19, 2025 | $0.46 | $0.30 | -34.8% | $326M | -8.3% |
| May 14, 2025 | $1.13 | $1.20 | +6.2% | $337M | -4.6% |
| Nov 20, 2024 | $1.11 | $1.16 | +4.5% | $349M | -2.3% |
| Feb 21, 2024 | $1.96 | $1.95 | -0.5% | $487M | +1.2% |
| Nov 21, 2023 | $1.15 | $1.09 | -5.2% | $373M | -22.7% |
| May 17, 2023 | $1.22 | $1.47 | +20.5% | $396M | +2.7% |
| Mar 1, 2023 | $1.75 | $2.01 | +14.9% | $527M | +4.2% |
| Nov 22, 2022 | $1.35 | $1.33 | -1.5% | $403M | +2.7% |
| Aug 10, 2022 | $1.42 | $1.38 | -2.8% | $398M | — |
| May 26, 2022 | $1.35 | $1.16 | -14.1% | $322M | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · May 13, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Interim CEO Leadership & Strategic Direction * Mark King was appointed interim CEO following the departure of Lance Tucker, who laid the foundational framework for the Jack on Track turnaround plan. King's immediate focus is accelerating existing Jack on Track initiatives, restoring positive same-store sales and transaction growth, and improving shareholder value while the board conducts a permanent CEO search. * Management emphasizes the barbell strategy balancing value offerings and premium innovation is working, with improved sales momentum building through Q2 and into Q3. - Operational & Marketing Improvements * Year-to-date, the marketing calendar has been streamlined to improve restaurant execution, with a better balance of value and premium messaging that drove improving sales trends. Digital channel offer lineups were updated, driving higher, more profitable average checks. * Premium launch of SmashJack sliders performed well, supporting multiple dining occasions as an add-on, combo, meal, or party pack. The value offering Munch Better Deals drove transaction growth. * Operational focus is centered on improving guest experience, food quality, and restaurant appearance. Mini restaurant refreshes (low capital outlay) have delivered high ROI and measurable sales improvements; the pace of refreshes for both company and franchise locations has more than doubled year-to-date. - Franchisee Focus & Strategic Priorities * Franchisee profitability and success is a core daily focus across all business decisions. A joint committee of corporate and franchisee leaders is addressing franchisee margin pressure. Management prioritizes simplifying the menu and back-of-house operations to unlock short-term profitability improvements for franchisees. - Balance Sheet & Capital Management * Total debt outstanding at quarter end was $1.6 billion, with a net debt to adjusted EBITDA leverage ratio of 6.9x. Approximately $99 million of the August 2026 debt tranche will be prepaid early in Q3 using excess COLE funding and cash on hand, bringing the pro forma leverage ratio to 6.2x. Management is actively refinancing the August 2026 and February 2027 tranches, with an update expected later in the summer. * Year-to-date real estate sale proceeds totaled $14.7 million; management expects an additional $35-45 million in proceeds by year-end, which will be used for further debt reduction. Restaurant closures are expected to accelerate in the second half of the year as franchisees increasingly opt to close underperforming locations earlier than contract expiration.
Guidance
- Full fiscal 2026 same-store sales guidance was revised to an expected low single-digit decline, with Q1 2026 having been the lowest point of the year and steady sequential improvement expected through Q3 and into Q4 2026. - Restaurant-level margin is guided to approximately 17% for the full year, which incorporates mid-single-digit commodity inflation and low single-digit wage inflation. Beef inflation is expected to remain in double digits through Q3 before moderating in Q4, with deflation in other commodities such as dairy partially offsetting beef price pressure. - Franchise-level margin is guided to $265-275 million, reflecting updated expectations for restaurant closures and real estate sales, which are subject to timing shifts that could impact results. - Steady-state G&A for the standalone Jack in the Box brand (post conclusion of the Del Taco transition services agreement) is expected to be approximately 2.3% of system-wide sales, with total SG&A (including advertising) projected between $115-125 million, excluding any COLE gains or losses. - Full year adjusted EBITDA guidance is set to $225-235 billion? No, $225-235 million. All other guidance metrics remain unchanged from prior releases.
Segment performance
Jack in the Box only reports aggregate company-wide performance with no distinct product segment breakdowns. System-wide same-store sales for Q2 2026 decreased 3.8%: franchise restaurant same-store sales fell 3.9% and company-owned same-store sales fell 2.8%. The decline was driven by lower transaction volumes, partially offset by implemented price increases. Restaurant-level margin was 16.4% (down from 19.6% year-over-year), with food and packaging costs at 28.9% of sales (+110 bps YoY) and labor costs at 35.6% of sales (+180 bps YoY). Franchise-level margin was $60.5 million, equal to 37.9% of franchise revenues, down from $68.3 million (40% YoY). SG&A was $26.4 million, equal to 10.4% of total revenues, down from $28.2 million (10.6% YoY). GAAP earnings from continuing operations was $12.5 million ($0.65 diluted EPS) compared to $20.7 million ($1.09 diluted EPS) YoY. Adjusted EBITDA was $51.3 million, down from $61.5 million YoY.
Risks & headwinds
- Persistent consumer spending pressure in the current macroeconomic environment, which continues to pressure transaction volumes and same-store sales performance. - Commodity cost inflation, specifically double-digit beef inflation expected through Q3 2026, which puts pressure on restaurant and franchise margins. - Refinancing risk for the August 2026 and February 2027 debt tranches, with current market conditions creating a headwind for refinancing costs. - Franchisee profitability pressure from inflation and lower sales, which limits franchisee ability to invest in larger capital improvement projects and slows underperforming restaurant closures due to lease exit hurdles. - Execution risk for the turnaround plan, requiring accelerated progress on menu simplification, operational improvements, marketing efficiency, and franchisee support to restore sales growth.
Analyst Q&A
Q: What key skills is Jack in the Box targeting for the new permanent CEO, what are interim CEO Mark King's top near-term priorities, and what short-term support is being offered to franchisees facing margin pressure? /
A: King stated the core priority for the interim role and the new CEO is accelerating the existing Jack on Track plan and returning the business to positive transaction and same-store sales growth. Near-term priorities include a holistic review of innovation, value positioning, and core products to focus marketing and operations on a small set of high-impact menu items that can move the needle. To support franchisee margins, a joint corporate-franchisee committee is prioritizing rapid menu and back-of-house simplification, which can unlock short-term labor and profitability gains that offset uncontrollable commodity price pressure.
Q: What factors drove the Q3 year-to-date improvement in same-store sales (now approaching flat), and what catalysts will drive further improvement in the back half of the year? /
A: The improvement is driven by the balanced barbell strategy, where Munch Better Deals drove transaction growth and the broadly appealing SmashJack sliders delivered check growth across multiple dining occasions. Improved operational execution has also lifted customer satisfaction scores for order accuracy and guest experience, which are leading indicators for future sales growth. Back half catalysts include ongoing consistent value positioning, a FIFA World Cup promotion, the return of the popular non-food Jibbies promotion, the upcoming culturally relevant Hot Ones collab, and further operational improvement benefits.
Q: Is the targeted number of annual restaurant closures unchanged, and what is the latest update on the refinancing of upcoming debt tranches? /
A: The total targeted number of closures remains unchanged, though closures have proceeded slower than initially anticipated and are now expected to accelerate in the back half of the year as franchisees have become more willing to exit underperforming locations early. Management is dedicating additional resources to working with landlords to ease lease exit barriers, the primary holdup for faster closures. For refinancing, management is actively working with advisors, evaluating all available capital structures amid current market cost headwinds, and will provide a full update later this summer once details are finalized.
Q: What explains the expected sequential margin step-up in the back half of 2026, which typically is the weakest margin period for the business? /
A: The expected margin improvement comes primarily from an expected moderation of beef inflation, which has been in double digits for the first three quarters of the year, to low single digits in Q4, providing cost relief. Additionally, the new Chicago market (which dragged down margins in Q1 as the brand entered the new region) has started to deliver better top-line and bottom-line momentum, with further improvement expected as operations stabilize and operating hours are expanded to drive higher sales leverage.