Jack in the Box Q1 same-store sales drop 6.7%, EBITDA plunges 23%, shares tumble 18%
Biglari Capital, holding 9.86% of Jack in the Box, flagged Q1 fiscal 2026 same-store sales fell 6.7% while adjusted EBITDA plunged 23%, sending margin down 400 basis points to 19.5%. EPS slid 54% to $0.75 and shares dropped 18%, prompting a recommendation to vote against Chairman Goebel’s re-election.
1. Q1 Fiscal 2026 Results
Jack in the Box reported a 6.7% decline in systemwide same-store sales in Q1 fiscal 2026, a reversal from last year's 0.4% gain. Adjusted EBITDA fell approximately 23% year over year, pushing margin down 400 basis points to 19.5%, while EPS dropped 54% to $0.75, triggering an 18% share plunge post-release.
2. Shareholder Value Erosion
Biglari Capital, the largest shareholder with a 9.86% stake, emphasized that since David Goebel joined the board in 2009 and became chairman in 2020, over $1.2 billion in market value has been lost while Goebel collected millions in compensation. The latest downturn added roughly $800 million in value destruction under his tenure prior to chairmanship.
3. Governance and Voting Recommendation
In response to the earnings shortfall, Biglari Capital urged all shareholders to vote against Goebel’s re-election at the upcoming annual meeting. The firm argued that retaining Goebel risks further deterioration and criticized the planned $5 million proxy defense spend as misaligned with shareholder interests.