Jack In The Box (NASDAQ:JACK) Issues Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Jack In The Box (NASDAQ:JACK) released its earnings results on Wednesday. The restaurant operator reported $0.96 EPS for the quarter, beating the consensus estimate of $0.88 by $0.08, FiscalAI reports. The business had revenue of $257.66 million during the quarter, compared to analyst estimates of $264.70 million. Jack In The Box had a net margin of 2.84% and a negative return on equity of 6.28%. The business’s quarterly revenue was down 22.6% on a year-over-year basis. During the same period in the prior year, the business earned $1.02 earnings per share.

Here are the key takeaways from Jack In The Box’s conference call:

• Q3 performance remained below expectations: Jack in the Box same-store sales declined 1.1%, restaurant-level margin fell to 17.6%, and adjusted operating EPS decreased to $0.96 from $1.04 year over year.
• Q4 same-store sales are running in the low-single-digit positive range, helped by the earlier launch of the Philly Cheesesteak platform, stronger traffic and check, and a better balance between premium and value offerings.
• Management outlined five priorities for a turnaround: better customer insight, improved food quality, restaurant refreshes, simpler operations and stronger franchisee profitability. A system-wide burger platform is expected in 2027, while menu and marketing changes will be tested ahead of broader 2027 initiatives.
• Franchisee economics remain pressured by declining sales, inflation and bad debt, with restaurant closures occurring more slowly than expected. The company now anticipates approximately 10–20 additional closures in Q4 and elevated closures potentially continuing through 2028.
• The company reduced debt by $244 million since launching Jack On Trac and completed a refinancing, lowering net leverage to 6.3 times. However, total debt remains approximately $1.5 billion, and digital sales—about 22% of revenue—still require work to become consistently profitable.

Jack In The Box Stock Down 0.1%

Shares of Jack In The Box stock opened at $18.76 on Friday. The stock has a market cap of $357.75 million, a PE ratio of 10.84, a price-to-earnings-growth ratio of 1.03 and a beta of 1.38. The business has a fifty day simple moving average of $15.01 and a 200-day simple moving average of $14.57. Jack In The Box has a 12 month low of $8.91 and a 12 month high of $23.86.

Insider Transactions at Jack In The Box

In other Jack In The Box news, Director Guillermo Diaz, Jr. acquired 5,962 shares of Jack In The Box stock in a transaction that occurred on Thursday, May 28th. The stock was purchased at an average cost of $11.51 per share, with a total value of $68,622.62. Following the purchase, the director owned 20,692 shares in the company, valued at approximately $238,164.92. The trade was a 40.48% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On Jack In The Box

A number of large investors have recently made changes to their positions in JACK. US Bancorp DE boosted its holdings in shares of Jack In The Box by 96.7% during the third quarter. US Bancorp DE now owns 1,420 shares of the restaurant operator’s stock worth $28,000 after purchasing an additional 698 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in Jack In The Box by 3,604.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,852 shares of the restaurant operator’s stock valued at $35,000 after buying an additional 1,802 shares during the period. Russell Investments Group Ltd. lifted its position in Jack In The Box by 882.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 3,144 shares of the restaurant operator’s stock worth $62,000 after buying an additional 2,824 shares in the last quarter. Inspire Investing LLC purchased a new stake in Jack In The Box in the 4th quarter worth approximately $100,000. Finally, Cubist Systematic Strategies LLC boosted its stake in shares of Jack In The Box by 206.6% during the 1st quarter. Cubist Systematic Strategies LLC now owns 5,967 shares of the restaurant operator’s stock valued at $162,000 after buying an additional 11,567 shares during the period. Institutional investors and hedge funds own 99.79% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on JACK shares. Barclays cut their price objective on Jack In The Box from $23.00 to $15.00 and set an “equal weight” rating for the company in a research report on Thursday, May 14th. UBS Group boosted their target price on Jack In The Box from $14.00 to $20.00 and gave the stock a “neutral” rating in a research report on Thursday. Jefferies Financial Group set a $12.50 price target on Jack In The Box in a research report on Thursday, May 14th. Sanford C. Bernstein set a $15.00 price target on Jack In The Box in a research note on Thursday, May 14th. Finally, Guggenheim downgraded Jack In The Box from a “buy” rating to a “neutral” rating in a report on Thursday, May 28th. Three investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $17.22.

Trending Headlines about Jack In The Box

Here are the key news stories impacting Jack In The Box this week:

• Positive Sentiment: Jack in the Box reported fiscal third-quarter adjusted EPS of $0.96, exceeding the $0.88 analyst consensus. Adjusted EBITDA increased to $61.2 million from $57.1 million, helped by lower SG&A expenses. JACK Q3 Earnings Top Estimates, Revenues Miss as Same-Store Sales Fall
• Positive Sentiment: Management maintained fiscal 2026 adjusted EBITDA guidance of $225 million to $230 million and is targeting a system-wide burger platform rollout in 2027, potentially supporting traffic and sales growth over time. Jack in the Box targets adjusted EBITDA and burger platform rollout
• Neutral Sentiment: Unusually heavy options activity saw investors purchase 8,301 call options, roughly 332% above average daily volume. This may indicate increased speculative interest, but it is not a fundamental signal by itself.
• Negative Sentiment: Revenue totaled approximately $257.7 million, below the $264.7 million consensus estimate. Same-store sales fell 1.1%, including declines at both franchised and company-owned restaurants, while systemwide sales decreased 1.4%. Jack in the Box’s sales were not so hot last quarter
• Negative Sentiment: Net earnings from continuing operations declined to $21.0 million from $22.8 million year over year, while EPS fell from $1.02 to $0.96 on a comparable basis. Commodity inflation and franchise-related pressure are weighing on margins and demand. Jack in the Box misses sales expectations

About Jack In The Box

Jack in the Box (NASDAQ: JACK) is a publicly traded quick-service restaurant company best known for its Jack in the Box brand of fast-food restaurants. Founded in 1951 by Robert O. Peterson and headquartered in San Diego, California, the company has operated for decades as a franchisor and operator of drive-thru and dine-in restaurants. Its business model combines company-owned locations with franchise arrangements, and the company focuses on building brand recognition through menu innovation, marketing and service convenience.

The company’s core offerings center on a broad fast-food menu that includes hamburgers (notably the Jumbo Jack), tacos, breakfast items, sandwiches, salads, sides and specialty limited-time items.