Jack in the Box Inc. reported a decline in financial performance for the first quarter of fiscal year 2026, ending January 18, 2026. The company generated total revenues of $349.5 million, a decrease of 5.8% from $371.1 million in the same period last year. This decline was primarily driven by a drop in franchise rental revenues, which fell to $97.4 million from $105.8 million, and a decrease in franchise royalties and contributions for advertising. The company reported a net loss of $2.5 million, compared to a net income of $33.7 million in the prior year, resulting in a net loss per share of $0.13, down from earnings of $1.77 per share.
The company experienced significant operational changes, notably the sale of its Del Taco operations, which was completed on December 22, 2025, for $115 million. This strategic divestiture has been classified as discontinued operations, impacting the financial results for the quarter. The sale resulted in a loss from discontinued operations of $16.8 million, compared to earnings of $2.7 million from discontinued operations in the previous year. The company now operates 149 company-operated and 1,979 franchise-operated restaurants, a slight decrease from the previous year.
Operationally, Jack in the Box faced challenges with same-store sales, which decreased by 4.7% for company-operated restaurants and 7.0% for franchised locations. The decline in customer transactions and average check contributed to this downturn. The company reported a decrease in average unit volumes (AUVs) for franchised restaurants, which fell to $576 from $606. Additionally, the company’s total cash and restricted cash increased to $99.4 million, up from $104.6 million in the prior year, reflecting a focus on liquidity amid operational challenges.
Looking ahead, Jack in the Box aims to prioritize debt reduction as part of its "JACK on Track" plan, having prepaid $105 million of its Series 2019-1 Class A-2-II Notes using proceeds from the Del Taco sale. The company has also suspended its dividend payments to allocate funds toward debt servicing. With available borrowings of $95.3 million under its credit facility, the company expects to meet its capital expenditure and working capital needs for the foreseeable future. However, management acknowledges ongoing risks, including labor costs, commodity price fluctuations, and competition in the quick-service restaurant sector, which may impact future performance.
About JACK IN THE BOX INC
Jack in the Box Inc. is a restaurant company operating and franchising two major quick-service brands: Jack in the Box, offering diverse burgers, breakfast, and snack items, and Del Taco, serving Mexican-American favorites with fresh ingredients. The company focuses on brand innovation, operational excellence, and franchise growth across the U.S., leveraging a franchise-based business model with a strong emphasis on food quality, digital platforms, and customer experience.
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