Jack In The Box 2025 Q4 Earnings EPS Plummets 73.7% Despite Revenue Beat

Jack In The Box (JACK) reported fiscal Q4 2025 earnings on Nov 19, 2025, with revenue of $326.19 million—below the prior year’s $349.29 million but exceeding Wall Street’s $318.7 million forecast. Earnings per share (EPS) collapsed to $0.30, missing estimates by 34.78%, while the company revised 2026 guidance to reflect ongoing operational challenges, including same-store sales declines and margin pressures.

Revenue

With specific segment revenue listed as follow:

Company-operated locations generated $142.52 million in revenue, a 5.9% year-over-year decline, while franchise sales totaled $183.68 million, down 7.2%. The combined systemwide revenue of $326.2 million outperformed expectations but reflected a 6.6% annual drop, driven by lower transaction volumes and unfavorable menu mix, partially offset by price increases.

Earnings/Net Income

The company’s net income shrank to $5.80 million in Q4 2025, a 73.6% decline from $21.94 million in the prior year. EPS plummeted 73.7% to $0.30, underscoring significant profitability erosion despite a 20-year streak of quarterly profitability. The sharp decline highlights operational headwinds and cost pressures.

Post-Earnings Price Action Review

Following the earnings release, Jack In The Box’s stock experienced mixed short-term performance, rising 0.28% on the day but retreating 5.08% over the subsequent week and 16.69% month-to-date. Post-earnings, shares fell nearly 9.62% as investors reacted to the EPS miss and revised guidance, signaling skepticism about the company’s ability to reverse declining sales and margin compression.

CEO Commentary

CEO Lance Tucker acknowledged a “challenging” 2025 but emphasized progress on the JACK on Track plan, including the pending Del Taco divestiture and operational closures. He highlighted a 300-basis-point sales improvement in Q4 via promotional strategies and menu adjustments but noted ongoing check pressure from prior price hikes. Tucker outlined 2026 priorities: closing underperforming units, reimagining brand identity, and reducing debt, framing the year as a “rebuilding” phase.

Guidance

For 2026, Jack In The Box anticipates same-store sales declines of -1% to +1%, with company restaurant-level margins of 17%–18% and franchise-level margins of $275M–$290M. Adjusted EBITDA is projected at $225M–$240M, down from $322.3M in FY25. The company plans to repurpose real estate and divest Del Taco to fund $263M in debt reduction, with 2,050–2,100 total restaurants by year-end.

Additional News

The company announced the sale of Del Taco to Yadav Enterprises for $115 million, though risks remain if the deal fails to close as planned. Jack In The Box also suspended its dividend and share repurchase program to focus on deleveraging. CEO Tucker emphasized operational reforms, including field team restructuring and culinary innovation under new chef Ciaran Duffy, to drive long-term value.