Jack in the Box (JACK) Q2 2026 earnings summary

Executive summary

• Interim CEO Mark King emphasized accelerating operational improvements and the Jack on Track plan, focusing on guest experience, franchisee profitability, and transaction growth.

• Revenue for the quarter ended April 12, 2026, was $254.3 million, down 4.3% year-over-year; systemwide sales decreased 3.8%.

• Net earnings for the quarter were $10.2 million, compared to a net loss of $142.2 million in the prior year, reflecting discontinued operations and the Del Taco sale.

• Mini refreshes of restaurants and a balanced value/premium menu strategy are driving incremental sales and improved guest experience.

• Franchisee health and profitability remain a core focus, with ongoing support and collaboration.

Financial highlights

• Q2 same-store sales decreased 3.8% year-over-year; franchise down 3.9%, company-owned down 2.8%.

• Restaurant-level margin fell to 16.4% from 19.6% year-over-year, impacted by commodity and labor inflation.

• Franchise-level margin was $60.5M (37.9% of franchise revenues), down from $68.3M (40%).

• GAAP diluted EPS from continuing operations was $0.65, down from $1.09; operating EPS was $0.76 vs. $1.25.

• Adjusted EBITDA was $51.3M, down from $61.5M, mainly due to lower sales and closures.

Outlook and guidance

• Fiscal 2026 guidance: low single-digit same-store sales decline expected, with improvement anticipated through Q3 and Q4.

• Restaurant-level margin guidance at ~17%; franchise-level margin expected at $265M–$275M.

• Adjusted EBITDA forecasted at $225M–$235M; SG&A projected at $115M–$125M.

• Restaurant count forecasted at 2,050–2,100, with 20 openings and 50–100 closures, mostly franchise locations.

• Management expects cash flows and available credit to be sufficient for capital needs over the next twelve months.