Jack in the Box's first-quarter performance fell short of expectations, and the stock price dropped 4%

Jack in the Box Inc. (NASDAQ:JACK) reported first-quarter results that fell short of analyst expectations, with same-store sales declining 6.7% and adjusted earnings per share of $1.00, below the anticipated $1.15. The fast-food chain’s revenue dropped to $349.5 million, missing the market consensus of $374.31 million.

Following the earnings release, Jack in the Box’s stock price fell 4.5%.

The company’s performance was impacted by a significant decline in transaction volume and product mix, with price increases only partially offsetting this effect. System-wide sales decreased by 7.1% this quarter.

CEO Lance Tucker stated, “Our performance this quarter aligns with our expectations. We continue to focus on fundamentals, simplify our business, and fulfill our ‘JACK on Track’ commitment to lay a stronger foundation for sustainable growth.”

Restaurant-level profit margin (non-GAAP) was 16.1%, down from 23.2% in the same period last year, primarily due to rising commodity costs and the negative impact of last year’s beverage promotion expiration. Franchise-level profit margin decreased from 40.9% to 38.6% year-over-year.

This quarter, the company reduced the number of restaurants, opening 6 new locations but closing 14. Jack in the Box completed the sale of Del Taco Holdings Inc. on December 22, 2025, with Del Taco’s performance now included in discontinued operations.

Despite a challenging quarter, the company maintained its full-year guidance for fiscal 2026, including same-store sales growth forecasted to be between -1% and +1% compared to fiscal 2025. Management expects performance to gradually improve for the remainder of the fiscal year.

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