Jack in the Box Inc. Reports Fourth Quarter and Full-Year 2025 Earnings

SAN DIEGO--( BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the Jack in the Box and Del Taco segments in the fourth quarter, ended September 28, 2025.

“While performance in the fourth quarter did not meet our expectations, we remain focused on restoring positive momentum for the Jack in the Box brand,” said Lance Tucker, Jack in the Box Chief Executive Officer. “As we enter our 75th anniversary, we're working hard to give our guests more compelling reasons to choose Jack in the Box by getting back to basics with our Jack's Way operations and marketing initiatives that leverage our iconic brand equities. As we work with urgency to strengthen our operating results over the coming quarters, I am optimistic that the improvements to our everyday execution combined with the structural changes from our Jack on Track plan will quickly lead to much improved results and increased shareholder value.”

Jack in the Box Performance

Same-store sales decreased 7.4% in the fourth quarter of 2025, comprised of a decrease in company-operated same-store sales of 5.3% and a decrease in franchise same-store sales of 7.6%. Sales performance was driven by a decrease in transactions and unfavorable menu mix, which was partially offset by menu price increases. Systemwide sales (1) for the fourth quarter decreased 7.2%.

Restaurant-Level Margin (2), a non-GAAP measure, was 16.1% for the fourth quarter, a decrease from 18.5% in the prior year quarter. Restaurant-Level Margin (2) includes inefficiencies associated with entry into the Chicago market, where the company opened 8 restaurants within the quarter, which the company expects to normalize as the market matures. The decrease was further driven by transaction declines and inflationary increases in commodities, partially offset by menu price increases and a reversal of additional FUTA taxes in California.

Franchise-Level Margin (2), a non-GAAP measure, was 38.9% for the fourth quarter, a decrease from 40.4% a year ago. The decrease was driven primarily by lower franchise same-store sales and rolling over the benefit of franchise lease termination income in the prior year, partially offset by early termination fees due to closures as part of the closure program.

Jack in the Box opened 15 new restaurants, and closed 47 restaurants during the fourth quarter. Of these, 38 of the 47 closures were part of the “JACK on Track” block restaurant closure program. For fiscal year 2025, Jack in the Box opened 31 new restaurants, and closed 86 restaurants.

Jack in the Box Same-Store Sales:

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Company

(5.3)%

(2.2)%

(3.7)%

0.0%

Franchise

(7.6)%

(2.0)%

(4.3)%

(1.5)%

System

(7.4)%

(2.1)%

(4.2)%

(1.3)%

Jack in the Box Restaurant Counts:

2025

2024

Company

Franchise

Total

Company

Franchise

Total

Restaurant count at beginning of Q4

142

2,026

2,168

144

2,051

2,195

New

Refranchised

)

—

Closed

—

(47

)

(47

)

—

(20

)

(20

)

Restaurant count at end of Q4

150

1,986

2,136

150

2,041

2,191

Net Unit Increase (Decrease)

(40

)

(32

)

Q4 2025 QTD Net

Unit % Increase (Decrease)

5.6

(2.0

(1.5

Del Taco Performance

Same-store sales decreased 3.9% in the fourth quarter of 2025, comprised of franchise same-store sales decrease of 4.2% and company-operated same-store sales decrease of 3.1%. Sales performance was driven by decreases in transactions and unfavorable mix, which was partially offset by menu price increases. Systemwide sales (1) for the fourth quarter of 2025 decreased 5.4%.

Restaurant-Level Margin (2), a non-GAAP measure, was 6.8% for the fourth quarter, a decrease from 9.3% in the prior year period. This decrease was primarily driven by the impact of opening the Colorado market, combined with transaction declines, as well as inflationary increases in commodities, partially offset by menu price increases and a reversal of additional FUTA taxes in California.

Franchise-Level Margin (2), a non-GAAP measure, was 30.0% for the fourth quarter, an increase from 26.5% one year ago. The increase was driven by a lease buyout and early termination penalties, partially offset by lower sales and higher bad debt expense.

Del Taco had 4 new restaurant openings and 13 restaurant closures during the fourth quarter. For fiscal year 2025, Del Taco opened 14 new restaurants and closed 32.

Del Taco Same-Store Sales:

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Company

(3.1)%

(3.0)%

(2.4)%

(1.3)%

Franchise

(4.2)%

(4.1)%

(1.6)%

System

(3.9)%

(3.7)%

(1.5)%

Del Taco Restaurant Counts:

2025

2024

Company

Franchise

Total

Company

Franchise

Total

Restaurant count at beginning of Q4

132

453

585

165

432

597

New

—

Acquired from franchisees

—

)

—

Refranchised

—

(34

)

—

Closed

—

(13

)

(13

)

—

)

Restaurant count at end of Q4

132

444

576

133

461

594

Net Unit Increase (Decrease)

—

)

Q4 2025 QTD Net

Unit % Increase (Decrease)

—

(2.0

(1.5

Company-Wide Performance

Total revenues decreased 6.6% in the fourth quarter of 2025 to $326.2 million, as compared to $349.3 million in the prior year fourth quarter.

Company-wide SG&A expense for the fourth quarter of 2025 was $36.6 million, an increase of $6.6 million compared to the prior year fourth quarter, driven primarily by an incremental contribution of $5.5 million to Jack in the Box brand advertising, as well as higher insurance costs and a decrease in COLI gains. This was partially offset by lower share-based compensation and incentive compensation.

Pre-opening costs increased $2.6 million in the fourth quarter compared to the prior year quarter, driven by new restaurant opening activity in certain Colorado, Illinois and Utah markets.

The effective tax rate was (30.4%) in the fourth quarter of 2025, which was due to an income tax benefit recorded in the quarter primarily attributable to incremental non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans and favorable state audit accruals recorded in the quarter. The non-GAAP operating EPS tax rate for the fourth quarter of 2025 was 11.9% primarily due to favorable state audit accruals recorded in the quarter.

Adjusted EBITDA (4), was $45.6 million in the fourth quarter of fiscal 2025 compared with $65.5 million for the prior year quarter.

Net earnings was $5.8 million for the fourth quarter of 2025, compared with $21.9 million for the prior year fourth quarter.

Diluted earnings per share was $0.30 for the fourth quarter of 2025 as compared with $1.12 in the prior year fourth quarter. Operating Earnings Per Share (3) was $0.30 in the fourth quarter compared with $1.16 in the prior year fourth quarter.

Capital Allocation

The company did not repurchase any shares of common stock in the fourth quarter of 2025. For the full year 2025, the company repurchased 0.1 million shares, for an aggregate cost of $5.0 million. As of September 28, 2025, there was $175.0 million remaining amount under share repurchase programs authorized by the Board of Directors which does not expire. As previously announced, Jack in the Box discontinued its dividend.

Guidance & Outlook

The following guidance and underlying assumptions reflect the company’s current expectations for the fiscal year ending September 27, 2026. All guidance represents the standalone Jack in the Box brand unless otherwise noted. Del Taco results will be reflected in discontinued operations for fiscal year 2026. As the company restructures following the sale of Del Taco, the company expects variability across quarters, as indicated below:

Fiscal Year 2026 Company-wide Guidance

Conference Call

The company will host a conference call for analysts and investors on Wednesday, November 19, 2025, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the Investors section of the Jack in the Box company website at http://investors.jackinthebox.com. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days. The call can be accessed via phone by dialing (888) 596-4144 and using ID 7573961.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box ®, one of the nation's largest hamburger chains with approximately 2,135 restaurants across 21 states, and Del Taco ®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 575 restaurants across 18 states. For more information on both brands, including franchising opportunities, visit www.jackinthebox.com and www.deltaco.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the company's brand; increased regulatory and legal complexities, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; and stock market volatility. This press release also contains forward-looking statements regarding the anticipated consummation of the proposed sale of Del Taco and the expected timing thereof. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. There can be no assurance that the proposed sale of Del Taco will be completed as currently contemplated or at all. These and other factors are discussed in the company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per share data)

(Unaudited)

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Revenues:

Company restaurant sales

142,515

151,417

627,344

709,035

Franchise rental revenues

80,663

87,281

368,643

375,428

Franchise royalties and other

52,078

54,463

232,820

238,170

Franchise contributions for advertising and other services

50,937

56,129

236,507

248,673

326,193

349,290

1,465,314

1,571,306

Operating costs and expenses, net:

Food and packaging

41,949

42,974

171,077

199,271

Payroll and employee benefits

50,627

53,022

222,155

238,047

Occupancy and other

31,496

32,532

129,188

139,305

Franchise occupancy expenses

56,783

57,675

254,387

245,379

Franchise support and other costs

4,081

4,374

18,997

17,281

Franchise advertising and other services expenses

53,389

58,930

243,580

259,131

Selling, general and administrative expenses

36,636

30,033

149,635

143,233

Depreciation and amortization

14,983

13,570

58,314

59,776

Pre-opening costs

3,868

1,264

7,335

3,182

Impairment of goodwill and intangible assets

—

209,556

162,624

Other operating expense, net

8,985

8,453

22,403

24,796

Gains on the sale of company-operated restaurants

(613

)

(4,639

)

(3,243

)

(3,255

)

302,184

298,188

1,483,384

1,488,770

Earnings (loss) from operations

24,009

51,102

(18,070

)

82,536

Other pension and post-retirement expenses, net

1,342

1,579

5,814

6,843

Interest expense, net

18,223

18,525

78,941

80,016

Earnings (loss) from continuing operations and before income taxes

4,444

30,998

(102,825

)

(4,323

)

Income tax (benefit) expense

(1,352

)

9,056

(22,106

)

32,372

Net earnings (loss)

5,796

21,942

(80,719

)

(36,695

)

Net earnings (loss) per share - basic (1)

0.30

1.13

(4.24

)

(1.87

)

Net earnings (loss) per share - diluted (1)

0.30

1.12

(4.24

)

(1.87

)

Weighted-average shares outstanding:

Basic

19,064

19,348

19,054

19,572

Diluted

19,154

19,510

19,054

19,572

Cash dividends declared per common share

—

0.44

0.88

1.76

(1)

JACK IN THE BOX INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

September 28,

2025

September 29,

2024

ASSETS

Current assets:

Cash

51,531

24,745

Restricted cash

30,282

29,422

Accounts and other receivables, net

90,311

83,567

Inventories

3,958

3,922

Prepaid expenses

15,826

13,126

Assets held for sale

18,329

16,493

Other current assets

10,135

10,002

Total current assets

220,372

181,277

Property and equipment, at cost:

Land

82,008

93,950

Buildings

967,676

963,699

Restaurant and other equipment

225,102

171,436

Construction in progress

39,444

49,445

1,314,230

1,278,530

Less accumulated depreciation and amortization

(870,622

)

(848,491

)

Property and equipment, net

443,608

430,039

Other assets:

Operating lease right-of-use assets

1,371,454

1,410,083

Intangible assets, net

9,884

10,515

Trademarks

105,600

283,500

Goodwill

136,026

161,209

Deferred tax assets

41,268

—

Other assets, net

265,209

259,006

Total other assets

1,929,441

2,124,313

2,593,421

2,735,629

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Current maturities of long-term debt

29,489

35,880

Current operating lease liabilities

159,267

162,017

Accounts payable

71,101

69,494

Accrued liabilities

170,766

166,868

Total current liabilities

430,623

434,259

Long-term liabilities:

Long-term debt, net of current maturities

1,674,487

1,699,433

Long-term operating lease liabilities, net of current portion

1,259,577

1,286,415

Deferred tax liabilities

—

13,612

Other long-term liabilities

167,005

153,708

Total long-term liabilities

3,101,069

3,153,168

Stockholders’ deficit:

Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued

—

Common stock $0.01 par value, 175,000,000 shares authorized, 83,012,784 and 82,825,851 issued, respectively

830

828

Capital in excess of par value

542,177

533,818

Retained earnings

1,769,205

1,866,660

Accumulated other comprehensive loss

(49,858

)

(57,475

)

Treasury stock, at cost, 64,120,270 and 63,996,399 shares, respectively

(3,200,625

)

(3,195,629

)

Total stockholders’ deficit

(938,271

)

(851,798

)

2,593,421

2,735,629

JACK IN THE BOX INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

52 Weeks Ended

September 28,

2025

September 29,

2024

Cash flows from operating activities:

Net loss

(80,719

)

(36,695

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

58,314

59,776

Amortization of franchise tenant improvement allowances and incentives

6,699

4,998

Deferred finance cost amortization

4,759

4,830

Excess tax deficiency from share-based compensation arrangements

1,568

Deferred income taxes

(57,705

)

(10,812

)

Share-based compensation expense

8,238

13,471

Pension and postretirement expense

5,814

6,843

Gains on cash surrender value of company-owned life insurance

(9,122

)

(16,480

)

Gains on the sale of company-operated restaurants

(3,243

)

(3,255

)

Gains on acquisition of restaurants

)

(2,702

)

Losses on the disposition of property and equipment, net

2,161

185

Impairment charges and other

213,997

171,415

Changes in assets and liabilities, excluding acquisitions and dispositions:

Accounts and other receivables

(4,188

)

19,905

Inventories

(37

)

(25

)

Prepaid expenses and other current assets

(6,648

)

(297

)

Operating lease right-of-use assets and lease liabilities

2,750

22,705

Accounts payable

(1,784

)

(15,404

)

Accrued liabilities

10,448

(135,159

)

Pension and postretirement contributions

(6,395

)

(5,937

)

Franchise tenant improvement allowance and incentive disbursements

(7,683

)

(2,486

)

Other

25,140

(6,111

)

Cash flows provided by operating activities

162,358

68,816

Cash flows from investing activities:

Purchases of property and equipment

(88,223

)

(91,177

)

Purchases of assets intended for sale or leaseback

(8,827

)

(24,297

)

Acquisition of franchise-operated restaurants

(7,193

)

—

Proceeds from the sale and leaseback of assets

—

1,728

Proceeds from the sale of company-operated restaurants

6,384

19,400

Proceeds from the sale of property and equipment

19,870

24,975

Other

3,303

—

Cash flows used in investing activities

(74,686

)

(69,371

)

Cash flows from financing activities:

Borrowings on revolving credit facilities

—

6,000

Repayments of borrowings on revolving credit facilities

(6,000

)

—

Principal repayments on debt

(29,861

)

(29,892

)

Dividends paid on common stock

(16,614

)

(33,972

)

Proceeds from issuance of common stock

Repurchases of common stock

(4,996

)

(70,000

)

Payroll tax payments for equity award issuances

(2,557

)

(3,323

)

Cash flows used in financing activities

(60,026

)

(131,185

)

Net (decrease) increase in cash and restricted cash

27,646

(131,740

)

Cash and restricted cash at beginning of year

54,167

185,907

Cash and restricted cash at end of year

81,813

54,167

JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

The following table presents certain income and expense items included in our consolidated statements of earnings as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS DATA

(Unaudited)

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Revenues:

Company restaurant sales

43.7

43.3

42.8

45.1

Franchise rental revenues

24.7

25.0

25.2

23.9

Franchise royalties and other

16.0

15.6

15.9

15.2

Franchise contributions for advertising and other services

15.6

16.1

15.8

100.0

Operating costs and expenses, net:

Food and packaging (1)

29.4

28.4

27.3

28.1

Payroll and employee benefits (1)

35.5

35.0

35.4

33.6

Occupancy and other (1)

22.1

21.5

20.6

19.6

Franchise occupancy expenses (2)

70.4

66.1

69.0

65.4

Franchise support and other costs (3)

7.8

8.0

8.2

7.3

Franchise advertising and other services expenses (4)

104.8

105.0

103.0

104.2

Selling, general and administrative expenses

11.2

8.6

10.2

9.1

Depreciation and amortization

4.6

3.9

4.0

3.8

Pre-opening costs

1.2

0.4

0.5

0.2

Impairment of goodwill and intangible assets

—

14.3

10.3

Other operating expense, net

2.8

2.4

1.5

1.6

Gains on the sale of company-operated restaurants

(0.2

(1.3

(0.2

Earnings (loss) from operations

7.4

14.6

(1.2

5.3

Income tax rate (5)

(30.4

29.2

21.5

(748.9

(1)

(2)

(3)

(4)

(5)

Jack in the Box systemwide sales (in thousands):

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Company-operated restaurant sales

93,753

95,718

416,715

427,057

Franchised restaurant sales (1)

830,560

899,882

3,792,222

3,969,200

Systemwide sales (1)

924,313

995,600

4,208,937

4,396,257

Del Taco systemwide sales (in thousands):

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Company-operated restaurant sales

48,761

55,699

210,628

281,978

Franchised restaurant sales (1)

159,378

164,243

708,208

674,804

Systemwide sales (1)

208,139

219,942

918,836

956,782

(1)

JACK IN THE BOX INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP RESULTS TO NON-GAAP MEASUREMENTS

(Unaudited)

To supplement the consolidated financial statements, which are presented in accordance with GAAP, the company uses the following non-GAAP measures: Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin.

Management believes that these measurements, when viewed with the company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the company's core business without regard to potential distortions.

Operating Earnings Per Share

Operating Earnings Per Share represents diluted earnings per share on a GAAP basis excluding restructuring, integration and strategic initiatives, net COLI (gains) losses, pension and post-retirement benefit costs, impairment of goodwill and intangible assets, restaurant impairment charges, gains on the sale of company-operated restaurants, gain on acquisition of restaurants, gains on the sale of real estate to franchisees, excess tax shortfall from share-based compensation arrangements, and the tax-related impacts of the above adjustments.

Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Operating Earnings Per Share provides investors with a meaningful supplement of the company’s operating performance and period-over-period changes without regard to potential distortions.

Below is a reconciliation of Non-GAAP Adjusted Net Income to the most directly comparable GAAP measure of net income. Also below is a reconciliation of Non-GAAP Operating Earnings Per Share to the most directly comparable GAAP measure, diluted earnings (loss) per share:

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Net income (loss), as reported

5,796

21,942

(80,719

)

(36,695

)

Restructuring, integration and strategic initiatives (1)

3,548

1,019

7,298

15,631

Net COLI (gains) losses (2)

(3,618

)

(5,101

)

(6,882

)

(14,390

)

Pension and post-retirement benefit costs (3)

1,342

1,579

5,814

6,843

Impairment of goodwill and intangible assets (4)

—

209,556

162,624

Restaurant impairment charges (5)

1,449

7,872

4,384

8,008

Gains on the sale of company-operated restaurants

(613

)

(4,639

)

(3,243

)

(3,255

)

Gain on acquisition of restaurants (6)

—

(345

)

(2,702

)

Excess tax shortfall from share-based compensation arrangements

1,568

Tax impact of adjustments (7)

(2,217

)

194

(52,608

)

(13,458

)

Non-GAAP Adjusted Net Income

5,772

22,567

85,162

122,657

Diluted weighted-average shares outstanding - GAAP

19,154

19,510

19,054

19,572

Diluted weighted-average shares outstanding - non-GAAP (8)

19,154

19,510

19,175

19,774

Diluted earnings (loss) per share

0.30

1.12

(4.21

)

(1.86

)

Restructuring, integration and strategic initiatives (1)

0.19

0.05

0.38

0.79

Net COLI (gains) losses (2)

(0.19

)

(0.26

)

(0.36

)

(0.73

)

Pension and post-retirement benefit costs (3)

0.07

0.08

0.30

0.35

Impairment of goodwill and intangible assets (4)

—

10.93

8.22

Restaurant impairment charges (5)

0.08

0.40

0.23

0.40

Gains on the sale of company-operated restaurants

(0.03

)

(0.24

)

(0.17

)

(0.16

)

Gain on acquisition of restaurants (6)

—

(0.02

)

0.00

(0.14

)

Excess tax shortfall from share-based compensation arrangements

0.00

0.08

0.00

Tax impact of adjustments (7)

(0.12

)

0.01

(2.74

)

(0.68

)

Operating Earnings Per Share – non-GAAP (9)

0.30

1.16

4.44

6.20

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Adjusted EBITDA

Adjusted EBITDA represents net earnings (loss) on a GAAP basis excluding income taxes, interest expense, net, gains on the sale of company-operated restaurants, other operating expenses, net, impairment of goodwill and intangible assets, depreciation and amortization, amortization of cloud computing costs, amortization of favorable and unfavorable leases and subleases, net, amortization of franchise tenant improvement allowances and incentives, net COLI (gains) losses, and pension and post-retirement benefit costs.

Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Adjusted EBITDA is useful to investors to gain an understanding of the factors and trends affecting the company's ongoing cash earnings, from which capital investments are made and debt is serviced.

Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings (loss) (in thousands):

12 Weeks Ended

52 Weeks Ended

September 28,

2025

September 29,

2024

September 28,

2025

September 29,

2024

Net earnings (loss) - GAAP

5,796

21,942

(80,719

)

(36,695

)

Income taxes

(1,352

)

9,056

(22,106

)

32,372

Interest expense, net

18,223

18,525

78,941

80,016

Gains on the sale of company-operated restaurants

(613

)

(4,639

)

(3,243

)

(3,255

)

Other operating expense, net (1)

8,985

8,453

22,403

24,796

Impairment of goodwill and intangible assets (2)

—

209,556

162,624

Depreciation and amortization

14,983

13,570

58,314

59,776

Amortization of cloud-computing costs (3)

447

822

2,391

4,487

Amortization of favorable and unfavorable leases and subleases, net

(54

)

135

(60

)

701

Amortization of franchise tenant improvement allowances and incentives

1,459

1,168

6,522

4,998

Net COLI (gains) losses (4)

(3,618

)

(5,101

)

(6,882

)

(14,390

)

Pension and post-retirement benefit costs (5)

1,342

1,579

5,814

6,843

Adjusted EBITDA – non-GAAP

45,598

65,510

270,931

322,273

(1)

(2)

(3)

(4)

(5)

Restaurant-Level Margin

Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, pre-opening costs, impairment of goodwill and intangible assets, other operating expenses, net, gains or losses on the sale of company-operated restaurants, and other costs that are considered normal operating costs. As such, Restaurant-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-operated restaurants.

Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings (loss) from operations, for the 12-weeks ended (in thousands):

12 weeks ended September 28, 2025

Jack in the Box

Del Taco

Other (1)

Total (2)

Earnings (loss) from operations - GAAP

56,835

157

(32,982

)

24,010

Franchise rental revenues

(72,481

)

(8,182

)

—

(80,663

)

Franchise royalties and other

(44,343

)

(7,735

)

—

(52,078

)

Franchise contributions for advertising and other services

(44,193

)

(6,744

)

—

(50,937

)

Franchise occupancy expenses

49,314

7,468

—

56,782

Franchise support and other costs

2,693

1,388

—

4,081

Franchise advertising and other services expenses

46,393

6,996

—

53,389

Selling, general and administrative expenses

15,424

6,761

14,451

36,636

Depreciation and amortization

—

14,983

Pre-opening costs

2,482

1,386

—

3,868

Other operating expense, net

3,562

1,875

3,548

8,985

Gains on the sale of company-operated restaurants

(569

)

(44

)

—

(613

)

Restaurant-Level Margin- Non-GAAP

15,117

3,326

—

18,443

Company restaurant sales

93,753

48,761

—

142,514

Restaurant-Level Margin % - Non-GAAP

16.1

6.8

N/A

12.9

12 weeks ended September 29, 2024

Jack in the Box

Del Taco

Other (1)

Total (2)

Earnings from operations - GAAP

75,345

4,325

(28,568

)

51,102

Franchise rental revenues

(79,877

)

(7,404

)

—

(87,281

)

Franchise royalties and other

(46,677

)

(7,786

)

—

(54,463

)

Franchise contributions for advertising and other services

(48,797

)

(7,332

)

—

(56,129

)

Franchise occupancy expenses

50,338

7,336

—

57,674

Franchise support and other costs

3,332

1,043

—

4,375

Franchise advertising and other services expenses

50,759

8,172

—

58,931

Selling, general and administrative expenses

8,201

7,854

13,978

30,033

Depreciation and amortization

—

13,570

Pre-opening costs

1,052

213

—

1,265

Other operating expense, net

4,266

3,167

1,020

8,453

Gains on the sale of company-operated restaurants

(258

)

(4,381

)

—

(4,639

)

Restaurant-Level Margin- Non-GAAP

17,684

5,207

—

22,891

Company restaurant sales

95,718

55,699

—

151,417

Restaurant-Level Margin % - Non-GAAP

18.5

9.3

N/A

15.1

(1)

(2)

Franchise-Level Margin

Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and certain costs, such as selling, general, and administrative expenses, depreciation and amortization, pre-opening, impairment of goodwill and intangible assets, other operating expenses, net, and other costs that are considered normal operating costs. As such, Franchise-Level Margin is not indicative of the overall results of the company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations.

Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from operations, for the 12-weeks ended (in thousands):

12 weeks ended September 28, 2025

Jack in the Box

Del Taco

Other (1)

Total (2)

Earnings from operations - GAAP

56,835

157

(32,982

)

24,010

Company restaurant sales

(93,753

)

(48,761

)

—

(142,514

)

Food and packaging

28,396

13,553

—

41,949

Payroll and employee benefits

31,618

19,009

—

50,627

Occupancy and other

18,623

12,873

—

31,496

Selling, general and administrative expenses

15,424

6,761

14,451

36,636

Depreciation and amortization

—

14,983

Pre-opening costs

2,482

1,386

—

3,868

Impairment of goodwill and intangible assets

—

Other operating expense, net

3,562

1,875

3,548

8,985

Gains on the sale of company-operated restaurants

(569

)

(44

)

—

(613

)

Franchise-Level Margin - Non-GAAP

62,618

6,809

—

69,427

Franchise rental revenues

72,481

8,182

—

80,663

Franchise royalties and other

44,343

7,735

—

52,078

Franchise contributions for advertising and other services

44,193

6,744

—

50,937

Total franchise revenues

161,017

22,661

—

183,678

Franchise-Level Margin % - Non-GAAP

38.9

30.0

N/A

37.8

12 weeks ended September 29, 2024

Jack in the Box

Del Taco

Other (1)

Total (2)

Earnings from operations - GAAP

75,345

4,325

(28,568

)

51,102

Company restaurant sales

(95,718

)

(55,699

)

—

(151,417

)

Food and packaging

28,964

14,009

—

42,973

Payroll and employee benefits

31,274

21,748

—

53,022

Occupancy and other

17,794

14,737

—

32,531

Selling, general and administrative expenses

8,201

7,854

13,978

30,033

Depreciation and amortization

—

13,570

Pre-opening costs

1,052

213

—

1,265

Other operating expense, net

4,266

3,167

1,020

8,453

Gains on the sale of company-operated restaurants

(258

)

(4,381

)

—

(4,639

)

Franchise-Level Margin - Non-GAAP

70,920

5,973

—

76,893

Franchise rental revenues

79,877

7,404

—

87,281

Franchise royalties and other

46,677

7,786

—

54,463

Franchise contributions for advertising and other services

48,797

7,332

—

56,129

Total franchise revenues

175,351

22,522

—

197,873

Franchise-Level Margin % - Non-GAAP

40.4

26.5

N/A

38.9

(1)

(2)