CEO Lance Tucker admitted that the quarterly performance did not meet management’s expectations.
- The fast-food chain’s revenue, same-store sales, and adjusted EPS declined in Q4.
- Jack In The Box flagged its previously announced sale of Del Taco might not close as planned.
- CEO Lance Tucker admitted that the quarterly performance did not meet management’s expectations.
Jack In The Box, Inc. on Wednesday missed expectations for its fiscal fourth-quarter profit and flagged uncertainty with its previously announced sale of the Del Taco chain.
The developments were part of the company’s quarterly results, which showed declines across key parameters. Shares of JACK slid 1.3% in the after-market session, even as their Stocktwits sentiment ticked higher.
“While performance in the fourth quarter did not meet our expectations, we remain focused on restoring positive momentum for the Jack in the Box brand,” CEO Lance Tucker said in a statement.
Del Taco Deal Risks
Jack In The Box last month announced a deal to sell Del Taco to California-based Yadav Enterprises for $115 million, and forecast the deal to close by January 2026.
In the risk statements, Jack In The Box added a section on the deal, saying that “the pending sale of Del Taco may not be completed on the anticipated terms or timeline, or at all… Even if the sale is completed, we may not realize the expected strategic or financial benefits.”
Q4 Results and FY26 Forecast
In the fourth quarter, the company’s revenue fell 6.6% to $326.2 million, beating analysts’ expectations of $318.7 million. However, adjusted earnings per share (EPS) of $0.30 missed the target of $0.45.
Same-store sales were down 7.4%, comprising a decrease in company-operated same-store sales of 5.3% and a decrease in franchise same-store sales of 7.6%.
Sales performance was driven by a decrease in transactions and unfavorable menu mix, which was partially offset by menu price increases, the company said. Jack In The Box opened 15 new restaurants and closed 47 restaurants during the fourth quarter.
For the fiscal year 2026, the company expects -1% to +1% change in same-store sales versus FY25, and adjusted EBITDA of $225 to $240 million vs. $322.5 million last year.
Retail’s View
On Stocktwits, the retail sentiment for the company’s stock shifted to ‘extremely bullish’ as of late Wednesday, from ‘bullish’ the previous day, with ‘extremely high’ message volume.
“This has already been slaughtered. I think it’s all priced in. I bet the stock eventually stabilizes at $15, not at $12,” said one user.
As of the last close, JACK is down 65.5% year-to-date.
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