Jack in the Box Reports Q1 Fiscal 2025 Revenue Decline to $469.4 Million

Jack in the Box Inc. reported its financial results for the first quarter of fiscal 2025, ending January 19, 2025, revealing a total revenue of $469.4 million, a decrease of 3.7% from $487.5 million in the same period last year. The decline was primarily attributed to a drop in company restaurant sales, which fell to $201.4 million from $224.0 million, while franchise rental revenues and royalties showed slight increases. Net earnings for the quarter were $33.7 million, down from $38.7 million a year earlier, resulting in diluted earnings per share of $1.75 compared to $1.93 in the prior year.

The company experienced significant operational changes, particularly in its Del Taco segment, where company-operated restaurant sales decreased by 26.5% to $67.7 million, largely due to the refranchising of 60 locations. In contrast, Jack in the Box's same-store sales saw a minor decline of 0.4%, while franchise sales increased slightly. The overall number of restaurants remained stable, with 2,190 locations across both brands as of the end of the quarter.

Operationally, Jack in the Box reported a favorable change in working capital, contributing to a cash flow from operations of $105.7 million, a significant turnaround from a cash outflow of $22.7 million in the previous year. The company also noted a decrease in capital expenditures, totaling $35.1 million, down from $38.8 million, reflecting reduced spending on property and equipment. The company repurchased 0.1 million shares for $5.0 million during the quarter, with $175 million remaining under its share repurchase program.

Looking ahead, Jack in the Box remains focused on strategic initiatives, including the integration of Del Taco and enhancing operational efficiencies. The company anticipates that cash flows from operations, combined with available credit facilities, will be sufficient to meet its capital expenditure and working capital needs for the foreseeable future. The management expressed optimism about stabilizing sales and improving profitability as they navigate the challenges posed by labor costs and commodity inflation.