Jack in the Box Inc. reported a significant decline in financial performance for the quarter ending April 13, 2025, with total revenues of $336.7 million, down from $365.3 million in the same quarter of the previous year. The company's net loss for the quarter was $142.2 million, compared to a net profit of $25.0 million in the prior year. This resulted in a loss per share of $7.47, a stark contrast to earnings of $1.27 per share in the same quarter last year. Year-to-date revenues also fell to $806.1 million from $852.8 million, reflecting ongoing challenges in the quick-service restaurant sector.
The decline in revenue was attributed to a decrease in same-store sales, which fell by 4.0% for company-operated Jack in the Box restaurants and 1.7% for Del Taco locations. The company also faced increased operational costs, including a 10.6% rise in labor costs due to wage inflation, and higher occupancy expenses. Additionally, Jack in the Box recorded a substantial impairment charge of $203.2 million related to goodwill and intangible assets, primarily associated with the Del Taco brand, which has been underperforming.
Strategically, Jack in the Box announced plans to explore alternatives for the Del Taco brand, including a potential divestiture. The company is also implementing a closure program aimed at shutting down 150 to 200 underperforming Jack in the Box locations. Furthermore, the Board of Directors has decided to discontinue cash dividends, redirecting those funds towards debt reduction efforts. As of April 13, 2025, the company had $45.6 million in cash and restricted cash, with available borrowings of $96.5 million under its credit facility.
Operationally, Jack in the Box operated 146 company-operated and 2,037 franchise-operated Jack in the Box restaurants, along with 117 company-operated and 474 franchise-operated Del Taco restaurants as of the reporting date. The company has also refranchised 47 Del Taco locations since the second quarter of 2024, which has impacted its revenue structure. The total number of shares outstanding as of May 7, 2025, was 18,879,446.
Looking ahead, Jack in the Box anticipates that cash flows from operations, combined with its financing facilities, will be sufficient to meet its capital expenditure and debt service requirements for the foreseeable future. However, the company remains cautious about the economic environment and its impact on consumer behavior, which could further affect its financial performance.
About JACK IN THE BOX INC
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