Jack in the Box Q1 revenue drops 5.8% to US$349.5M as footprint shrinks

GLOBAL – Jack in the Box has posted a challenging first quarter, with revenue falling 5.8% to US$349.5 million as same-store sales declined 6.7% and the chain’s overall footprint contracted.

Net earnings from continuing operations dropped to US$14.4 million from US$31 million a year earlier, with diluted earnings per share falling to US$0.75 from US$1.61, a tough start to fiscal 2026.

A Quarter of Declining Transactions and Unfavorable Mix

The numbers tell a sobering story.

Same-store sales, including both franchise and company-operated locations, decreased 6.7% as lower transactions and an unfavorable sales mix outweighed the benefit of higher prices. Systemwide sales fell 7.1% year-on-year.

The company’s footprint also shrank, with six new openings offset by 14 closures, leaving the chain with fewer restaurants serving customers.

Adjusted EBITDA landed at US$68.2 million, down from US$88.8 million in the prior-year quarter.

Del Taco Exit Completed

During the quarter, Jack in the Box completed the sale of its Del Taco restaurant operations to Yadav Enterprises and Anil Yadav, transferring the brand to new ownership.

The move simplifies the company’s portfolio and allows leadership to focus entirely on the core Jack in the Box brand as it works to reverse declining traffic trends.

“JACK on Track” Commitments and 2026 Outlook

CEO Lance Tucker struck a measured tone, noting that results were “in line with our expectations.”

He emphasized the company’s focus on fundamentals, simplifying the business, and delivering on its “JACK on Track” commitments to build “a stronger foundation for sustainable growth.”

The company reaffirmed guidance issued in November 2025, targeting a Jack in the Box restaurant count of 2,050 to 2,100 by year-end.

Same-store sales are projected in a range of -1% to +1% versus fiscal 2025, with company-owned restaurant-level margins expected between 17% and 18%.

What’s Next for the 73-Year-Old Chain

For a brand that has been serving burgers since 1951, this quarter represents a stumble rather than a fall.

The focus now is on stabilizing traffic, optimizing the restaurant footprint, and executing the turnaround plan with discipline.

With a streamlined portfolio following the Del Taco sale and clear guidance for the year ahead, Jack in the Box is betting that a return to fundamentals will put its performance back on track.

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