Jack In The Box 2025 Q4 Earnings Misses Targets as Earnings Plunge 73.7% and Revenue Falls 6.6%

Jack In The Box (JACK) reported fiscal 2025 Q4 earnings on Nov 19, 2025, missing analyst expectations with a 73.7% decline in EPS to $0.31 and a 6.6% revenue drop to $326.19 million. The company guided to 2026 same-store sales of -1% to +1% and 60–100 restaurant closures, signaling ongoing challenges despite progress on its “JACK on Track” restructuring plan.

Revenue

Jack In The Box’s total revenue fell 6.6% year-over-year to $326.19 million in Q4 2025, contrasting with $349.29 million in the prior-year period. This decline was driven by a 7.4% drop in same-store sales, with both company-operated and franchise locations underperforming. Del Taco, which is in the process of divestiture, reported system-wide same-store sales down 3.9%.

Earnings/Net Income

The company’s EPS plummeted 73.7% to $0.31 in Q4 2025, compared to $1.17 in Q4 2024, while net income fell 73.6% to $5.80 million from $21.94 million. This marked a significant earnings downturn despite sustained profitability over 20+ years in the quarter.

Post-Earnings Price Action Review

The strategy of buying JACK shares after its revenue drop and earnings miss has historically underperformed. On the earnings release day, the stock plummeted 8%, missing analyst estimates, and remained under pressure over the subsequent 30 days, delivering a -13.7% return versus the S&P 500’s +1.4%. Over three years, recurring revenue declines and earnings misses have eroded investor confidence, with no clear recovery trajectory. The stock’s prolonged weakness underscores persistent operational and market challenges.

CEO Commentary

CEO Lance Tucker described fiscal 2025 as “challenging” but highlighted progress on the “JACK on Track” plan, including the Del Taco divestiture and operational restructuring. He emphasized a “barbell promotional strategy” to boost value-driven sales and operational discipline, while framing 2026 as a “rebuilding year” focused on same-store sales recovery and restaurant closures.

Guidance

For fiscal 2026, Jack In The Box projects same-store sales of -1% to +1%, with 60–100 restaurant closures and $50–70 million in real estate sales. Adjusted EBITDA is forecast at $225–240 million, with $263 million in debt paydown via Del Taco proceeds. CFO Dawn Hooper noted margin pressures from Chicago market expansion and commodity inflation but reiterated disciplined capital allocation as a priority.

Additional News

1. M&A Activity: Jack In The Box is finalizing the sale of Del Taco, a key component of its shift to a simpler, asset-light business model. The divestiture will be reflected in discontinued operations for fiscal 2026.

2. C-Level Stability: CEO Lance Tucker reaffirmed his commitment to the “JACK on Track” plan, emphasizing operational restructuring and brand repositioning.

3. Dividend/Repurchase Discontinuation: The company suspended its dividend and share repurchase program to focus on debt reduction and restructuring costs.