Jack in the Box Q3 adjusted operating EPS beats estimates
JACK•Outlook
- Jack in the Box expects fiscal 2026 restaurant count of about 2,100 with 25 openings, 50-60 closures
- Company expects fiscal 2026 company-owned restaurant margin of about 16.5%, with mid-single-digit commodity inflation
- Jack in the Box maintains guidance for low single-digit same-store sales decline for fiscal 2026
Overview
- U.S. hamburger chain's Q3 revenue fell 1.8% yr/yr due to lower same-store sales and restaurant count
- Adjusted EPS for Q3 beat analyst expectations
- Company says sales decline was driven by fewer transactions, partially offset by price increases
Result Drivers
- Lower transactions - Co said sales performance was primarily driven by a decline in customer transactions, partially offset by higher prices
- Restaurant closures - Lower revenue was also attributed to a reduced number of restaurants, with more closures than openings in the quarter
- Margin pressure - Commodity cost inflation and changes in restaurant mix weighed on restaurant-level margin
- Franchise profitability - Franchise-level margin decreased due to lower sales, reduced rent and royalty revenue, fewer restaurants, and higher bad debt expense
