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

Jack In The Box (JACK) reported fiscal 2025 Q4 earnings on Nov 19, 2025, with results that missed expectations despite a revenue beat. The company’s EPS fell 73.7% to $0.30, and guidance for 2026 reflects cautious optimism amid operational restructuring.

Revenue

Jack In The Box’s total revenue declined 6.6% year-over-year to $326.19 million in Q4 2025, though it exceeded the $321.46 million Zacks consensus estimate. The drop was driven by a 7.4% decline in same-store sales, with company-operated locations down 5.3% and franchise locations down 7.6%. Del Taco, now in the process of divestiture, contributed to a 3.9% system-wide same-store sales decline.

Earnings/Net Income

The company’s net income plummeted to $5.80 million in Q4 2025, a 73.6% decline from $21.94 million in the prior-year period. Earnings per share (EPS) fell 73.7% to $0.30 from $1.17, underscoring the challenges in maintaining profitability despite the company’s 20-year streak of quarterly profits. The EPS shortfall reflects operational inefficiencies and inflationary pressures.

Post-Earnings Price Action Review

The strategy of buying Jack In The Box shares following its Q4 earnings report has historically underperformed, with an average 30-day return of -13.7% over the past three years, lagging the S&P 500’s +1.4%. Post-earnings, shares fell sharply, dropping 9.62% in after-hours trading and 16.69% month-to-date, reflecting investor skepticism about the company’s turnaround plans.

CEO Commentary

CEO Lance Tucker described Q4 2025 as a “story of two halves,” acknowledging a rocky start due to insufficient value offerings before pivoting to a $4.99 and $5 promotional strategy. He emphasized progress on the “JACK on Track” plan, including Del Taco’s divestiture and operational restructuring, while framing 2026 as a “rebuilding year” focused on same-store sales recovery and brand reimaging.

Guidance

For fiscal 2026, Jack In The Box expects same-store sales of -1% to +1%, with company-owned restaurant margins of 17%–18% and adjusted EBITDA of $225M–$240M. The guidance accounts for 6.9% beef inflation, 50–100 restaurant closures, and $263M in debt paydown via Del Taco proceeds and real estate sales.

Additional News

1. Del Taco Divestiture: The company finalized plans to sell Del Taco, shifting focus to a simpler, asset-light business model.

2. Dividend Suspension: Jack In The Box suspended its dividend and share repurchase program to prioritize restructuring.

3. Analyst Revisions: Post-earnings, multiple analysts slashed price targets, with ratings ranging from “Hold” to “Sell,” reflecting reduced confidence in near-term recovery.

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