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Jack in the Box revenue and profits slide amid strategic store closures
Jack in the Box revenue and profits slide amid strategic store closures

Jack in the Box revenue and profits slide amid strategic store closures

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Jack in the Box (NASDAQ:JACK) reported total revenue of $254.3 million for the second quarter ended April 12, 2026, a 4.3% decrease from $265.7 million in the prior-year period.

The decline was attributed to a 3.8% drop in systemwide same-store sales and a net reduction in the number of operating restaurants.

The company’s bottom line also faced pressure, with net earnings from continuing operations falling to $12.5 million, or $0.65 per diluted share, compared with $20.7 million, or $1.09 per share, a year ago.

On an adjusted basis, operating earnings per share reached $0.76, missing the analyst consensus of $0.81 as the brand struggled with a decline in guest transactions.

Operational margins were squeezed by commodity cost inflation, particularly in beef prices, and higher labor costs.

Restaurant-level margins fell to 16.4% from 19.6% year-over-year.

To counter these headwinds, the company is moving forward with its "JACK on Track" initiative, which involves closing 50 to 100 underperforming locations while focusing on 20 new high-growth restaurant openings.

Meanwhile, selling, general, and administrative expenses provided a rare bright spot, falling by $1.8 million to $26.4 million.

The decrease was primarily due to a litigation reversal and fluctuations in the cash surrender value of corporate-owned life insurance (COLI) policies.

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