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- **2026 Rebuilding Year**: Same-store sales guidance of -1% to +1%, with sequential improvement driven by 75th anniversary promotions and operational fixes.
- **Financial Targets**: 2026 EBITDA of $225-240 million, franchise margin of $225-290 million, and G&A of $125-135 million.
- **Key Risks**: 130 basis point margin drag from Chicago expansion, $8-10 million annual franchise margin decline from closures.
- **Strategic Moves**: Mini-remodel testing, full reimage delayed to 2027, and $263 million debt paydown with Del Taco proceeds.
- **Consumer Trends**: Value-focused promotions drove 300 bps Q4 improvement, with franchisees largely aligned on price adjustments.

**【CEO Summary Section】**
- Reported 7.4% decline in Jack in the Box system-wide same-store sales for Q4, driven by transaction decline and negative mix, partially offset by a 2.4% price increase.
- Q4 sales showed sequential improvement, with a 300 basis point improvement in trends from early to late quarter, attributed to the $4.99 Bonus Jack combo and $5 Smashed Jack promotions.
- 2026 outlook includes same-store sales guidance of -1% to +1%, with expectations for sequential improvement and a focus on operational excellence, menu innovation, and reimagining restaurants.
- Chicago market expansion added 8 restaurants in 12 weeks, but resulted in a 130 basis point margin drag due to elevated labor costs.
- 2026 priorities: completing Del Taco divestiture, closing 60-100 underperforming restaurants, and reimagining 2,050-2,100 restaurants.

**【CFO Financial Commentary】**
- Q4 adjusted EBITDA of $45.6 million, down 29.9% YoY due to lower sales and higher costs.
- 2026 EBITDA guidance of $225-240 million, reflecting $50-70 million in real estate sales proceeds and $263 million debt paydown.
- Franchise level margin expected to decline by $4.8-8 million annually due to closures, offset by $225-290 million franchise margin target.
- G&A expenses expected to remain elevated at $125-135 million, with 2.5% of system-wide sales in first half, improving to 2.3-2.4% in second half.

**【Q&A Highlights】**
- Q1 2026 same-store sales expected to be soft due to government shutdown impact and tough compares, but improving sequentially with 75th anniversary promotions.
- Franchisees largely supportive of value initiatives, with minimal pushback on price adjustments and combo tweaks.
- Mini-remodel program to test low-cost upgrades (under $25,000) with expected low single-digit cash-on-cash returns, while full reimage program delayed until 2027.
- Value scores improving in Q4, with focus on maintaining barbell strategy of price-pointed value and premium offerings.
- AUVs remain strong at $2 million, but franchisees cautious on reinvestment due to macroeconomic pressures.

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