Yahoo Finance

• Same Store Sales (Jack brand): Decreased 4.4% overall; franchise restaurants down 4.5%, company-owned down 4%.

• Restaurant Openings and Closures (Jack brand): 5 openings and 12 closures in the quarter.

• Restaurant Level Margin (Jack brand): Decreased to 19.6% from 23.6% a year ago.

• Food and Packaging Costs (Jack brand): 27.8% of sales, a decline of 100 basis points from the prior year.

• Labor Costs (Jack brand): 33.8% of sales, increased 320 basis points from the prior year.

• Franchise Level Margin (Jack brand): $68.3 million or 40% of franchise revenues, down from $71.7 million or 40.4% a year ago.

• Same Store Sales (Del Taco): Declined 3.6%; franchise sales down 4.2%, company-owned down 1.7%.

• Restaurant Level Margin (Del Taco): 12.8%, down 400 basis points from the prior year.

• Franchise Level Margin (Del Taco): 24.4% of franchise revenues, down from 28.9% last year.

• Restaurant Count (Del Taco): 591 with 6 openings and 4 closures during the quarter.

• SG&A Expenses: $35.5 million or 10.5% of revenues, down from $37.5 million or 10.3% a year ago.

• Consolidated Adjusted EBITDA: $66.5 million, down from $75.7 million in the prior year.

• GAAP Diluted Loss Per Share: $7.47 due to non-cash goodwill and intangible asset impairment.

• Operating Earnings Per Share: $1.20, down from $1.46 in the prior year.

• Capital Expenditures: $21.5 million for the quarter.

• Total Debt Outstanding: $1.7 billion with a net debt to adjusted EBITDA leverage ratio of 5.5 times.

• Warning! GuruFocus has detected 8 Warning Signs with JACK.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Jack In The Box Inc (NASDAQ:JACK) is focusing on becoming a simpler, asset-light company to drive sustainable long-term growth.

• Digital sales have increased to 18% system-wide, with continued investment in technology and digital initiatives.

• The rollout of new point-of-sale systems and kiosks is progressing, with nearly 1,500 restaurants equipped.

• The company is committed to strengthening its balance sheet, accelerating cash flow, and paying down debt.

• Jack In The Box Inc (NASDAQ:JACK) plans to open between 35 to 40 new restaurants in fiscal 2025, including in new markets like Chicago.

Negative Points

• Same-store sales decreased by 4.4% for the Jack brand, with both franchise and company-owned locations experiencing declines.

• Restaurant level margins decreased due to lower sales, inflation in commodities, wages, and utilities, and higher operating costs.

• The company recorded a significant non-cash goodwill and intangible asset impairment charge of $203.2 million for Del Taco.

• Jack In The Box Inc (NASDAQ:JACK) has discontinued its dividend and did not repurchase any shares during the quarter.

• The company is facing challenges with integrating new technology with existing legacy systems, impacting sales temporarily.