Overview

* Jack in the Box Q4 same-store sales fell 7.4%, driven by transaction declines and menu mix

* Adjusted EPS for Q4 missed analyst expectations

* Company opened 15 new restaurants, closed 47 in Q4, including closures under "Jack on Track"

Outlook

* Jack in the Box expects FY 2026 same-store sales of -1% to +1% vs FY25

* Company projects FY 2026 adjusted EBITDA of $225 to $240 mln

* Jack in the Box plans ~20 new openings and 50-100 closures in FY 2026

Result Drivers

* TRANSACTION DECLINES - Jack in the Box attributes decreased same-store sales to lower customer transactions and unfavorable menu mix

* CHICAGO MARKET ENTRY - Inefficiencies from entering the Chicago market impacted restaurant-level margins, expected to normalize as market matures

* INFLATIONARY PRESSURES - Inflationary increases in commodities contributed to margin declines, partially offset by menu price increases

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 $142.52

Company mln

Restaura

nt Sales

Q4 Miss $0.30 $0.44

Adjusted (18

EPS Analysts

)

Q4 EPS $0.30

Q4 Net $5.8 mln

Income

Q4 $45.6

Adjusted mln

EBITDA

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Jack in the Box Inc ( JACK ) is $20.00, about 28.7% above its November 18 closing price of $14.25

* The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)