Jack in the Box Inc. reported first‑quarter 2026 results that showed a 6.7% decline in same‑store sales and a 7.1% drop in systemwide sales. Diluted earnings per share from continuing operations were $0.75, down from $1.61 in the same quarter a year earlier, and revenue totaled $349.5 million, a 5.8% year‑over‑year decline from $371.1 million. The company beat the consensus revenue estimate of $343.87 million while missing the EPS estimate of $1.10.
Adjusted EBITDA fell to $68.2 million from $88.8 million year‑ago. Restaurant‑level margin contracted from 23.2% to 16.1%, and franchise‑level margin slipped from 40.9% to 38.6%. The compression is attributed to higher commodity and labor costs that eroded profitability across both company‑owned and franchise stores.
"Our results for the quarter were in line with our expectations. We remain focused on the fundamentals, simplifying the business, and delivering on our ‘JACK on Track’ commitments as we build a stronger foundation for sustainable growth," said CEO Lance Tucker.
"Initial guest response to our 75th anniversary celebrations has been encouraging, and while there is more work ahead, we believe the steps we are taking to drive a better and more consistent guest experience will lead to much improved performance as we move through the year," Tucker added.
The company reiterated its full‑year 2026 guidance, maintaining the same revenue and earnings outlook it set earlier in the year. The unchanged guidance signals management’s confidence in the company’s trajectory, but investors remain concerned about the EPS miss and margin compression.
Investors reacted negatively, focusing on the EPS miss and margin compression. The market’s response underscored the importance of the company’s ability to reverse the decline in profitability.
Jack in the Box completed the divestiture of Del Taco on December 22, 2025, allowing the company to concentrate on its core brand and accelerate debt reduction. The divestiture, combined with ongoing restaurant closures, is part of the broader ‘JACK on Track’ plan to streamline operations and improve financial flexibility.
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