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