Jack in the Box Inc. Reports First Quarter 2026 Earnings

SAN DIEGO, Calif.--( BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the first quarter ended January 18, 2026.

The Company completed the sale of Del Taco Holdings Inc. (“Del Taco”) on December 22, 2025. The Del Taco results are included in discontinued operations for all periods presented.

“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 Lance Tucker, Jack in the Box Chief Executive Officer. “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.”

Jack in the Box Performance

Same-store sales decreased 6.7% in the first quarter, comprised of franchise same-store sales decline of 7.0% and company-owned same-store sales decline of 4.7%. Sales performance resulted from a decline in transactions and mix, partially offset by an increase in price. Systemwide sales for the first quarter decreased 7.1%.

Restaurant-Level Margin (1), a non-GAAP measure, was $21.3 million, or 16.1%, down from $31.0 million, or 23.2%, a year ago driven primarily by commodity cost inflation, the negative impact from rolling over prior year beverage benefit, and a change in the mix of restaurants, partially offset by increased price.

Franchise-Level Margin (1), a non-GAAP measure, was $84.1 million, or 38.6%, a decrease from $97.1 million, or 40.9%, a year ago. The decrease was primarily due to lower sales driving lower rent revenue and royalties and a decrease in the number of restaurants as part of the 'JACK on Track' closure program.

Jack in the Box net restaurant count decreased in the first quarter, with six restaurant openings and 14 restaurant closures.

Jack in the Box Same-Store Sales:

16 Weeks Ended

January 18, 2026

January 19, 2025

Company

(4.7 %)

(0.4 %)

Franchise

(7.0 %)

0.5 %

System

(6.7 %)

0.4 %

Jack in the Box Restaurant Counts:

2026

2025

Company

Franchise

Total

Company

Franchise

Total

Restaurant count at Q4

150

1,986

2,136

150

2,041

2,191

New

Closed

)

(12

)

(14

)

—

)

Restaurant count at end of Q1

149

1,979

2,128

152

2,038

2,190

Q1'26 QTD Net Restaurant Change

)

QTD Net Restaurant Change

(0.7

(0.4

Total revenues decreased 5.8% to $349.5 million, compared to $371.1 million in the prior year quarter. The lower revenue is primarily the result of same-store sales declines, as well as a lower number of restaurants.

The SG&A expense for the first quarter was $37.0 million, a decrease of $4.1 million compared to the prior year quarter. The decrease was due primarily to the fluctuation of $3.8 million in the cash surrender value of our COLI policies. When excluding net COLI gains, G&A was 2.5% of systemwide sales.

Other operating expenses, net, were $8.1 million, an increase of $5.5 million compared to the prior year quarter. The increase was primarily due to higher professional fees associated with the proxy contest and a tax refund settlement, as well as increased costs for closed restaurants and cancellation of related projects. These costs were partially offset by gains from real estate sales.

Net earnings from continuing operations was $14.4 million for the first quarter of fiscal 2026. This is compared with net earnings from continuing operations of $31.0 million for the first quarter of the prior year.

Adjusted EBITDA (3), a non-GAAP measure, was $68.2 million in the first quarter of fiscal 2026 compared with $88.8 million for the prior year quarter.

The income tax provision for continuing operations reflects an effective tax rate of 32.4% in the first quarter of 2026 as compared to 30.0% in the prior year. This was primarily due to the establishment of valuation allowance on cumulative interest deduction limitations from current and prior fiscal years and the nondeductible component of share-based compensation largely offset by a favorable state refund claim settlement. The non-GAAP operating EPS tax rate for the first quarter of 2026 was 31.2%, primarily due to the establishment of valuation allowance on current fiscal year’s interest deduction limitation.

First quarter diluted earnings per share from continuing operations was $0.75 in 2026, compared to $1.61 in the prior year quarter. Operating Earnings Per Share (2), a non-GAAP measure, was $1.00 in the first quarter of fiscal 2026 compared with $1.86 in the prior year quarter.

(1) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings (loss) from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

(2) Operating Earnings Per Share represents the diluted earnings per share on a GAAP basis, excluding certain adjustments. See "Reconciliation of Non-GAAP Measurements to GAAP Results." Operating earnings per share may not add due to rounding.

(3) Adjusted EBITDA represents net earnings on a GAAP basis excluding certain adjustments. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

Del Taco Discontinued Operations

On October 15, 2025, the Company entered into a definitive agreement to sell Del Taco, which owns and operates the Company’s Del Taco restaurant operations, to Yadav Enterprises, Inc., a California corporation (“Buyer”) and Anil Yadav (“Buyer Guarantor”), which was completed on December 22, 2025. As a result of the sale, operating results for Del Taco are included in discontinued operations for all periods presented. There were losses from discontinued operations, net of taxes of $16.8 million for the first quarter of 2026, compared with earnings from discontinued operations, net of taxes of $2.7 million in the prior year quarter.

Capital Allocation

The Company did not repurchase any shares of our common stock in the first quarter. As of the end of the first quarter, there was $175.0 million remaining under the Board-authorized stock buyback program.

During the first quarter, the Company prepaid $105.0 million of the 2019-1 Class A-2-II Notes.

Guidance Updates

The Company reiterates its guidance and outlook provided on November 19, 2025, for the fiscal year ending September 27, 2026.

Conference Call

The Company will host a conference call for analysts and investors on Wednesday, February 18, 2026, 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 2,125 restaurants across 22 states. For more information, including franchising opportunities, visit www.jackinthebox.com.

Category: Earnings

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; stock market volatility; and the risks related to the Company’s ongoing proxy contest, potential changes in board composition or corporate strategy, and the associated costs and management distraction. 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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(In thousands, except per share data)

(Unaudited)

16 Weeks Ended

January 18, 2026

January 19, 2025

Revenues:

Company restaurant sales

131,907

133,755

Franchise rental revenues

97,387

105,781

Franchise royalties and other

58,876

63,615

Franchise contributions for advertising and other services

61,347

67,913

349,517

371,064

Operating costs and expenses, net:

Food and packaging

39,232

34,690

Payroll and employee benefits

46,577

44,528

Occupancy and other

24,801

23,540

Franchise occupancy expenses

66,301

67,916

Franchise support and other costs

3,760

3,301

Franchise advertising and other services expenses

63,472

68,992

Selling, general and administrative expenses

37,018

41,156

Depreciation and amortization

13,609

12,457

Pre-opening costs

1,457

Other operating expenses, net

8,050

2,547

302,879

300,584

Earnings from operations

46,638

70,480

Other pension and post-retirement expenses, net

1,684

1,789

Interest expense, net

23,682

24,380

Earnings before income taxes

21,272

44,311

Income tax expense

6,883

13,315

Earnings from continuing operations

14,389

30,996

(Losses) earnings from discontinued operations, net of taxes

(16,847

)

2,690

Net (loss) earnings

(2,458

)

33,686

Net earnings (loss) per share - basic:

Earnings from continuing operations

0.75

1.63

(Losses) earnings from discontinued operations

(0.88

)

0.14

Net (loss) earnings per share (1)

(0.13

)

1.77

Net earnings (loss) per share - diluted:

Earnings from continuing operations

0.75

1.61

(Losses) earnings from discontinued operations

(0.88

)

0.14

Net (loss) earnings per share (1)

(0.13

)

1.75

Weighted-average shares outstanding:

Basic

19,136

19,050

Diluted

19,234

19,215

Dividends declared per common share

—

0.44

____________________

(1)

Earnings per share may not add due to rounding.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)

January 18,

2026

September 28,

2025

ASSETS

Current assets:

Cash

71,973

45,766

Restricted cash

27,398

30,282

Accounts and other receivables, net

92,437

73,744

Inventories

2,771

2,346

Prepaid expenses

12,648

13,604

Current assets held for sale

16,430

46,042

Other current assets

8,561

8,588

Total current assets

232,218

220,372

Property and equipment:

Property and equipment, at cost

1,145,008

1,150,490

Less accumulated depreciation and amortization

(808,559

)

(806,873

)

Property and equipment, net

336,449

343,617

Other assets:

Operating lease right-of-use assets

1,000,680

1,005,024

Goodwill

136,026

Deferred tax assets

62,020

61,501

Non-current assets held for sale

—

574,967

Other assets, net

254,234

251,914

Total other assets

1,452,960

2,029,432

2,021,627

2,593,421

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:

Current maturities of long-term debt

28,270

29,458

Current operating lease liabilities

136,668

138,199

Accounts payable

45,278

56,349

Accrued liabilities

141,810

142,478

Current liabilities held for sale

—

64,139

Total current liabilities

352,026

430,623

Long-term liabilities:

Long-term debt, net of current maturities

1,564,253

1,674,235

Long-term operating lease liabilities, net of current portion

900,779

907,910

Non-current liabilities held for sale

—

377,445

Other long-term liabilities

140,607

141,479

Total long-term liabilities

2,605,639

3,101,069

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, 83,147,600 and 83,012,784 issued and outstanding, respectively

831

830

Capital in excess of par value

546,336

542,177

Retained earnings

1,766,747

1,769,205

Accumulated other comprehensive loss

(49,327

)

(49,858

)

Treasury stock, at cost, 64,120,270 and 64,120,270 shares, respectively

(3,200,625

)

(3,200,625

)

Total stockholders’ deficit

(936,038

)

(938,271

)

2,021,627

2,593,421

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

Sixteen Weeks Ended

January 18, 2026

January 19, 2025

Cash flows from operating activities:

Net (loss) earnings

(2,458

)

33,686

(Losses) earnings from discontinued operations

(16,847

)

2,690

Earnings from continuing operations

14,389

30,996

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

Depreciation and amortization

13,609

12,457

Amortization of franchise tenant improvement allowances and incentives

1,798

1,606

Deferred finance cost amortization

1,359

1,473

Tax deficiency from share-based compensation arrangements

1,399

1,111

Deferred income taxes

9,271

(4,526

)

Share-based compensation expense

4,159

3,689

Pension and post-retirement expense

1,684

1,789

Gains on cash surrender value of company-owned life insurance

(4,044

)

(189

)

(Gains) losses on the disposition of property and equipment, net

(6,271

)

417

Impairment charges

267

610

Changes in assets and liabilities:

Accounts and other receivables

2,177

13,923

Inventories

(424

)

(94

)

Prepaid expenses and other current assets

5,266

(1,629

)

Operating lease right-of-use assets and lease liabilities

(4,664

)

(5,705

)

Accounts payable

(5,617

)

8,036

Accrued liabilities

2,656

7,873

Pension and post-retirement contributions

(2,090

)

(2,218

)

Franchise tenant improvement allowance and incentive disbursements

(1,844

)

(1,816

)

Other

(2,534

)

33,780

Cash flows provided by operating activities

30,546

101,583

Cash flows from investing activities:

Purchases of property and equipment

(23,218

)

(21,300

)

Purchases of assets intended for sale or leaseback

—

(5,724

)

Proceeds from the sale of property and equipment

10,948

—

Proceeds from the sale and leaseback of assets

3,593

—

Other

2,800

3,303

Cash flows used in investing activities

(5,877

)

(23,721

)

Cash flows from financing activities:

Repayments of borrowings on revolving credit facilities

—

(6,000

)

Principal repayments on debt

(112,313

)

(7,456

)

Dividends paid on common stock

—

(8,308

)

Proceeds from issuance of common stock

Repurchases of common stock

—

(4,999

)

Payroll tax payments for equity award issuances

(873

)

(2,336

)

Cash flows used in financing activities

(113,185

)

(29,098

)

Cash flows (used in) provided by continuing operations

(88,516

)

48,764

Net cash (used in) provided by operating activities of discontinued operations

(11,902

)

4,073

Net cash provided by (used in) investing activities of discontinued operations

118,014

(2,363

)

Net cash used in financing activities of discontinued operations

(38

)

Net cash provided by discontinued operations

106,074

1,702

Cash and restricted cash at beginning of period, including discontinued operations cash

81,813

54,167

Cash and restricted cash at end of period, including discontinued operations cash

99,371

104,633

JACK IN THE BOX INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) DATA

(Unaudited)

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

16 Weeks Ended

January 18, 2026

January 19, 2025

Revenues:

Company restaurant sales

37.7

36.0

Franchise rental revenues

27.9

28.5

Franchise royalties and other

16.8

17.1

Franchise contributions for advertising and other services

17.6

18.3

100.0

Operating costs and expenses, net:

Food and packaging (1)

29.7

25.9

Payroll and employee benefits (1)

35.3

33.3

Occupancy and other (1)

18.8

17.6

Franchise occupancy expenses (2)

68.1

64.2

Franchise support and other costs (3)

6.4

5.2

Franchise advertising and other services expenses (4)

103.5

101.6

Selling, general and administrative expenses

10.6

11.1

Depreciation and amortization

3.9

3.4

Pre-opening costs

0.0

0.4

Other operating expenses, net

2.3

0.7

Earnings from continuing operations

13.3

19.0

Income tax rate (5)

32.4

30.0

____________________

(1)

As a percentage of company restaurant sales.

(2)

As a percentage of franchise rental revenues.

(3)

As a percentage of franchise royalties and other.

(4)

As a percentage of franchise contributions for advertising and other services.

(5)

As a percentage of earnings (loss) from operations and before income taxes.

16 Weeks Ended

January 18, 2026

January 19, 2025

Company-operated restaurant sales

131,907

133,755

Franchised restaurant sales (1)

1,136,642

1,232,347

Systemwide sales (1)

1,268,549

1,366,102

____________________

(1)

Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. Systemwide sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and systemwide restaurant sales information is useful to investors as they have a direct effect on the company's profitability.

JACK IN THE BOX INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS

(Unaudited)

To supplement the condensed consolidated financial statements, which are presented in accordance with GAAP, the Company uses the following non-GAAP measures: Adjusted Net Income, 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 from continuing operations on a GAAP basis excluding restructuring, integration and other, net COLI gains, pension and post-retirement benefit costs, impairment charges, gains on the sale of real estate to franchisees, excess tax shortfall from share-based compensation arrangements, and other tax-related impacts.

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 per share from continuing operations:

16 Weeks Ended

January 18, 2026

January 19, 2025

Net earnings from continuing operations, as reported

14,389

30,996

Restructuring, integration and other (1)

11,246

1,332

Net COLI gains (2)

(2,416

)

1,391

Pension and post-retirement benefit costs (3)

1,684

1,789

Impairment charges

353

622

Gains on the sale of real estate to franchisees (4)

(4,175

)

(337

)

Excess tax shortfall from share-based compensation arrangements

1,399

1,110

Tax impact of adjustments (5)

(3,239

)

(1,176

)

Non-GAAP Adjusted Net Income

19,241

35,727

Diluted weighted-average shares outstanding

19,234

19,215

Diluted earnings per share from continuing operations – GAAP

0.75

1.61

Restructuring, integration and other (1)

0.58

0.07

Net COLI gains (2)

(0.13

)

0.07

Pension and post-retirement benefit costs (3)

0.09

Impairment charges

0.02

0.03

Gains on the sale of real estate to franchisees

(0.22

)

(0.02

)

Excess tax shortfall from share-based compensation arrangements

0.07

0.06

Tax impact of adjustments (5)

(0.17

)

(0.06

)

Operating Earnings Per Share – non-GAAP (6)

1.00

1.86

____________________

(1)

Restructuring, integration and other reflects charges that are not part of our ongoing operations, including proxy contest fees, restructuring that is not deemed discontinued operations, professional fees for tax refund settlement, and other consulting fees for discrete project-based strategic initiatives that are not expected to recur in the foreseeable future.

(2)

Net COLI gains reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies.

(3)

Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as our two legacy post-retirement plans.

(4)

Gains on the sale of real estate to franchisees included in this reconciliation as the Company expects to have higher than normal sales of real estate in an effort to pay down debt.

(5)

Tax impacts are calculated based on the non-GAAP Operating EPS tax rate of 31.2% in the current quarter and 27.2% in the prior year quarter. Tax impacts for the first quarter of 2026 also include non-recurring amounts related to a favorable state tax refund claim settlement and the establishment of valuation allowance on cumulative interest deduction limitations from prior fiscal years.

(6)

Operating Earnings Per Share may not add due to rounding.

Adjusted EBITDA

Adjusted EBITDA represents net earnings from continuing operations on a GAAP basis excluding income taxes, interest expense, net, other operating expenses, net, depreciation and amortization, amortization of cloud computing costs, amortization of favorable and unfavorable leases and subleases, net, amortization of franchise tenant improvement allowances and other, 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 from continuing operations (in thousands):

16 Weeks Ended

January 18, 2026

January 19, 2025

Net earnings from continuing operations, as reported

14,389

30,996

Income taxes

6,883

13,315

Interest expense, net

23,682

24,380

Other operating expenses, net (1)

8,050

2,547

Depreciation and amortization

13,609

12,457

Amortization of cloud-computing costs (2)

507

366

Amortization of favorable and unfavorable leases and subleases, net (3)

)

Amortization of franchise tenant improvement allowances and other

1,798

1,605

Net COLI (gains)/losses (4)

(2,416

)

1,391

Pension and post-retirement benefit costs (5)

1,684

1,789

Adjusted EBITDA – non-GAAP

68,177

88,837

____________________

(1)

Other operating expense, net includes: restructuring, integration and other; costs of closed restaurants; impairment charges; accelerated depreciation and gains/losses on disposition of property and equipment, net.

(2)

Amortization of cloud computing costs includes the amounts for the non-cash amortization of capitalized implementation costs related to cloud-based software arrangements that are included within selling, general and administrative expenses.

(3)

Amortization of favorable and unfavorable leases and subleases, net, which is not already included in the other operating expense, net, noted above.

(4)

Net COLI (gains)/losses reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies.

(5)

Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as the two legacy post-retirement plans.

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 selling, general, and administrative expenses. Certain other costs are also excluded, such as depreciation and amortization, pre-opening costs, other operating expenses, net, and losses on the sale of company-operated restaurants. 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 from continuing operations (in thousands):

16 Weeks Ended

January 18, 2026

January 19, 2025

Earnings from continuing operations - GAAP

46,638

70,480

Franchise rental revenues

(97,387

)

(105,781

)

Franchise royalties and other

(58,876

)

(63,615

)

Franchise contributions for advertising and other services

(61,347

)

(67,913

)

Franchise occupancy expenses

66,301

67,916

Franchise support and other costs

3,760

3,301

Franchise advertising and other services expenses

63,472

68,992

Selling, general and administrative expenses

37,018

41,156

Depreciation and amortization

13,609

12,457

Pre-opening costs

1,457

Other operating expenses, net

8,050

2,547

Restaurant-Level Margin - Non-GAAP

21,297

30,997

Company restaurant sales

131,907

133,755

Restaurant-Level Margin % - Non-GAAP

16.1

23.2

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 selling, general, and administrative expenses. Certain other costs are also excluded, such as depreciation and amortization, pre-opening, other operating expenses, net, and losses on the sale of company-operated restaurants. 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 continuing operations (in thousands):

16 Weeks Ended

January 18, 2026

January 19, 2025

Earnings from continuing operations - GAAP

46,638

70,480

Company restaurant sales

(131,907

)

(133,755

)

Food and packaging

39,232

34,690

Payroll and employee benefits

46,577

44,528

Occupancy and other

24,801

23,540

Selling, general and administrative expenses

37,018

41,156

Depreciation and amortization

13,609

12,457

Pre-opening costs

1,457

Other operating expenses, net

8,050

2,547

Franchise-Level Margin - Non-GAAP

84,077

97,100

Franchise rental revenues

97,387

105,781

Franchise royalties and other

58,876

63,615

Franchise contributions for advertising and other services

61,347

67,913

Total franchise revenues

217,610

237,309

Franchise-Level Margin % - Non-GAAP

38.6

40.9

APPENDIX A

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(In thousands, except per share data)

(Unaudited)

Quarterly Period Ended

Fiscal Year

January 19, 2025

April 13, 2025

July 6, 2025

September 28, 2025

Revenues:

Company restaurant sales

133,755

95,095

94,112

93,753

416,715

Franchise rental revenues

105,781

77,935

76,538

72,481

332,735

Franchise royalties and other

63,615

45,754

44,604

44,343

198,316

Franchise contributions for advertising and other services

67,913

46,947

47,147

44,193

206,200

371,064

265,731

262,401

254,770

1,153,966

Operating costs and expenses, net:

Food and packaging

34,690

26,437

26,949

28,396

116,472

Payroll and employee benefits

44,528

32,178

32,465

31,618

140,789

Occupancy and other

23,540

17,804

17,840

18,623

77,807

Franchise occupancy expenses

67,916

51,153

50,829

49,314

219,212

Franchise support and other costs

3,301

3,198

3,314

2,693

12,506

Franchise advertising and other services expenses

68,992

48,029

47,994

46,393

211,408

Selling, general and administrative expenses

41,156

28,221

20,577

27,887

117,841

Depreciation and amortization

12,457

8,069

8,671

10,404

39,601

Pre-opening costs

1,457

599

866

2,482

5,404

Other operating expenses, net

2,547

1,760

4,531

5,467

14,305

Gains on the sale of company-operated restaurants

—

(569

)

(569

)

300,584

217,448

214,036

222,708

954,776

Earnings from operations

70,480

48,283

48,365

32,062

199,190

Other pension and post-retirement expenses, net

1,789

1,341

1,342

5,814

Interest expense, net

24,380

18,351

18,135

18,228

79,094

Earnings before income taxes

44,311

28,591

28,888

12,492

114,282

Income tax expense

13,315

7,892

6,049

1,209

28,465

Earnings from continuing operations

30,996

20,699

22,839

11,283

85,817

Earnings (losses) from discontinued operations, net of taxes

2,690

(162,927

)

(812

)

(5,487

)

(166,536

)

Net earnings (loss)

33,686

(142,228

)

22,027

5,796

(80,719

)

Net earnings (loss) per share - basic:

Earnings from continuing operations

1.63

1.09

1.20

0.59

4.50

Earnings (losses) from discontinued operations

0.14

(8.56

)

(0.04

)

(0.29

)

(8.74

)

Net earnings (loss) per share

1.77

(7.47

)

1.16

0.30

(4.24

)

Net earnings (loss) per share - diluted:

Earnings from continuing operations

1.61

1.09

1.19

0.59

4.50

Earnings (losses) from discontinued operations

0.14

(8.56

)

(0.04

)

(0.29

)

(8.74

)

Net earnings (loss) per share

1.75

(7.47

)

1.15

0.30

(4.24

)

Weighted-average shares outstanding:

Basic

19,050

19,043

19,061

19,064

19,054

Diluted

19,215

19,043

19,152

19,154

19,054

APPENDIX B

JACK IN THE BOX INC. AND SUBSIDIARIES

QUARTERLY RECONCILIATION OF ADJUSTED EBITDA

(In thousands, except per share data)

(Unaudited)

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

Quarterly Period Ended

Fiscal Year (6)

January 19, 2025

April 13, 2025

July 6, 2025

September 28, 2025

Net earnings from continuing operations

30,996

20,699

22,839

11,283

85,817

Income taxes

13,315

7,892

6,049

1,209

28,465

Interest expense, net

24,380

18,351

18,135

18,228

79,094

Gains on the sale of company-operated restaurants

—

(569

)

(569

)

Other operating expenses, net (1)

2,547

1,760

4,531

5,467

14,305

Depreciation and amortization

12,457

8,069

8,671

10,404

39,601

Amortization of cloud-computing costs (2)

366

238

244

1,086

Amortization of favorable and unfavorable leases and subleases, net (3)

)

(30

)

Amortization of franchise tenant improvement allowances and other

1,605

1,762

1,411

1,382

6,161

Net COLI losses/(gains) (4)

1,391

1,407

(6,062

)

(3,618

)

(6,882

)

Pension and post-retirement benefit costs (5)

1,789

1,342

5,814

Adjusted EBITDA – non-GAAP

88,837

61,513

57,147

45,365

252,862

____________________

(1)

(2)

(3)

Amortization of favorable and unfavorable leases and subleases, net, which is not already included in the other operating expense, net, noted above.

(4)

Net COLI losses/(gains) reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies.

(5)

Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as the two legacy post-retirement plans.

(6)

Fiscal Year totals may not add due to rounding.