Jack in the Box Inc. Q1 FY2026 earnings call

• Lance Tucker mentioned the successful sale of Del Taco and pay down of debt, and progress on Jack on Track initiatives. • Discussed Jack’s Way programs including improving operations, enhancing value proposition and menu strategy, modernizing restaurants. • Mentioned 75th anniversary activations, return of Hot Mess Burger, anniversary tour, simplified marketing calendar, and progress on restaurant technology rollout. • Highlighted early positive results from simplification efforts across ops and marketing.

Jack in the Box Inc. first quarter same-store sales decreased 6.7%, with franchise restaurant same-store sales down 7% and company-owned down 4.7%. Jack’s restaurant-level margin percentage was 16.1% in the quarter, down from 23.2%. Franchise-level margin was $84.1 million, or 38.6% of franchise revenues, down from $97.1 million, or 40.9% a year ago. There were six restaurant openings and 14 closures in the quarter. SG&A was $37.0 million, or 10.6% of revenues, down from $41.2 million, or 11.1% a year ago. Earnings from continuing operations were $14.4 million, down from $31.0 million in the prior year's first quarter. Consolidated adjusted EBITDA was $68.2 million, down from $88.8 million in the prior year.

• Reiterated guidance from November 2025. • Expect steady improvement on top line through 2026. • TSAs expected to be largely completed by end of second quarter with income nominal, no more than around $2 million. • Expect to sell real estate with proceeds of $50 million to $60 million by end of fiscal 2026 to pay down debt. • Focus on paying down an additional $200 million in debt over Jack on Track plan.

• Commodity inflation impact, particularly beef, which came in higher than anticipated. • Labor market challenges, especially in Chicago. • Weather impact on sales in certain regions. • Competition from larger chains and ongoing challenges with Hispanic consumer demand in some markets.

Q: Follow up on trends seen, including weather impact and Chicago performance.

A: Lance Tucker discussed January improvements, weather impact on sales, and ongoing work in Chicago to fix P&L issues. Dawn Hooper added on expected margin compression in Chicago in guidance.

Q: Question on franchisee four-wall margins and short-term help.

A: Lance Tucker said no blanket assistance but focused on profitability measures like supply chain cost cuts and digital program revamps.

Q: Thoughts on price-value equation and competition.

A: Lance Tucker and Ryan Ostrom discussed consistent value, innovation, price-pointed value, and quality improvements to compete with larger chains.

Q: Commodity inflation expectation.

A: Dawn Hooper said guidance still calls for mid single digits, beef up double digits with impact moderating in the year.

Q: Weather impact on West Coast stores.

A: Lance Tucker said no meaningful weather benefits seen in West Coast, impact was more in Texas and Midwest from Winter Storm Fern.

Q: Hispanic consumer demand and technology leverage.

A: Lance Tucker said little movement in Hispanic consumer demand recently, and discussion on leveraging POS and back-of-house systems for efficiencies.

Q: Regional performance comparison.

A: Lance Tucker discussed challenges in California market and its impact on consolidated numbers compared to peers.