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1. Company Snapshot

1.a. Company Description

Jack in the Box Inc.operates and franchises Jack in the Box quick-service restaurants.As of November 23, 2021, it operated and franchised approximately 2,200 Jack in the Box quick-service restaurants in 21 states and Guam.


The company was founded in 1951 and is headquartered in San Diego, California.

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1.b. Last Insights on JACK

Negative drivers behind Jack in the Box's recent performance include the impact of Del Taco refranchising transactions, which hurt the company's first-quarter fiscal 2025 results. Additionally, the company's same-store sales declined 3.7% year-over-year, and its top-line sales were affected by the refranchising transactions. Furthermore, the recent price target lowering by Baird to $25 from $34 and the company's focus on franchised restaurants, which reduces capital requirements but also limits growth opportunities, are also contributing factors.

1.c. Company Highlights

2. Jack in the Box Inc. Delivers Mixed First Quarter 2026 Results

Jack in the Box Inc. reported a decline in same-store sales of 6.7% for the first quarter of 2026, with franchise restaurant same-store sales decreasing 7% and company-owned same-store sales decreasing 4.7%. The company's restaurant-level margin percentage decreased to 16.1%, down from 23.2%, primarily due to a decline in transactions and sales mix, partially offset by menu price increases. The actual EPS came out at $1, missing estimates of $1.1. Revenue performance was broadly in line with expectations, despite the challenging sales environment.

Publication Date: Feb -24

📋 Highlights
  • Debt Paydown Post-Del Taco Sale:: $150M debt reduction achieved after completing the Del Taco sale in December 2025.
  • Q1 Same-Store Sales Decline:: 6.7% decrease, with franchise sales down 7% and company-owned sales down 4.7%.
  • Marketing Campaign Impact:: 75th-anniversary promotions and Jibby collectibles drove modest sales growth in Munchie Meals.
  • Labor Cost Increase:: Labor costs rose 200 basis points YoY, driven by restaurant mix changes and operational inefficiencies.

Operational Challenges and Initiatives

The company's CEO, Lance Tucker, highlighted the progress made in simplifying the business and reducing debt following the sale of Del Taco in December. He emphasized the importance of laying the foundation for sustainable long-term growth and reiterated that the company is on the right path. Tucker mentioned that the company's efforts to simplify marketing, reduce media messages, and focus on a highly cost-effective refresh of its restaurants are yielding tangible results. As Tucker noted, "We're doing exactly what we said we would do with regard to the Jack on Track initiatives, and these efforts are yielding tangible results."

Margin Pressures and Cost Management

The company's CFO, Dawn Hooper, reviewed the financial performance, highlighting the margin compression due to food and packaging costs, labor costs, and sales mix. The company is taking steps to manage costs, including implementing cost-cutting measures like a new soft drink dispenser and supply chain optimizations. Hooper stated that the company's commodity inflation guidance remains at mid-single digits, with beef being the most impactful.

Valuation and Outlook

With a P/E Ratio of -4.7 and an EV/EBITDA of 284.66, the market is pricing in significant challenges for the company. Analysts estimate next year's revenue growth at 1.6%. The company's efforts to simplify its business, reduce debt, and improve operational efficiency are crucial to driving growth and improving profitability. The dividend yield of 2.58% may provide some support to the stock, but the negative free cash flow yield and ROIC raise concerns about the company's ability to generate cash and deliver returns on investment.

3. NewsRoom

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Del Taco Celebrates National Burrito Day with Free Classic Burritos

Mar -31

Source: globenewswire.com

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107,821 Shares in Jack In The Box Inc. $JACK Purchased by Assenagon Asset Management S.A.

Mar -31

Source: defenseworld.net

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Jack in the Box Inc. Announces Katelyn Zborowski as Chief Marketing Officer

Mar -30

Source: businesswire.com

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Jack In The Box (NASDAQ:JACK) versus Jollibee Foods (OTCMKTS:JBFCY) Financial Comparison

Mar -09

Source: defenseworld.net

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Jack in the Box Selects Restaurant365 As Its Sole Back-Office Inventory Platform

Mar -05

Source: prnewswire.com

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Jack in the Box Supports Make-A-Wish® for the 13th Year In A Row

Mar -04

Source: businesswire.com

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Jack in the Box Shareholders Re-Elect All 10 of its Board of Director Nominees and Approve Each of the Company's Proposals

Mar -02

Source: businesswire.com

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Biglari Capital Calls for Immediate Resignation of Jack in the Box Chairman David Goebel, Who Was Overwhelmingly Rejected by Stockholders with "Skin in the Game"

Feb -27

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Jack in The Box

Expected Growth: 4.77%

Jack in the Box's 4.77% growth is driven by strategic menu innovation, increased focus on digital transformation, and effective marketing campaigns. Additionally, the brand's value proposition, convenience, and late-night operating hours appeal to a loyal customer base, contributing to its growth momentum.

Del Taco

Expected Growth: 4.83%

Del Taco's 4.83% growth is driven by its value-oriented menu, successful refranchising efforts, and strategic marketing initiatives. Additionally, the brand's focus on convenience, including mobile ordering and drive-thru services, has contributed to increased sales. Furthermore, Del Taco's expansion into new markets and remodels of existing locations have also supported growth.

7. Detailed Products

Burgers

Jack in the Box offers a variety of burgers made with 100% beef, including the signature Jumbo Jack and the Bacon Ultimate Cheeseburger.

Sandwiches

The company offers a range of sandwiches, including chicken, turkey, and club sandwiches, as well as salads and wraps.

Breakfast Items

Jack in the Box serves breakfast items such as egg sandwiches, burritos, and hash browns, available all day.

Sides

The company offers a variety of sides, including fries, curly fries, and potato wedges.

Desserts

Jack in the Box offers a range of desserts, including ice cream cones, milkshakes, and cookies.

Beverages

The company offers a variety of beverages, including soft drinks, iced tea, and coffee.

Value Meals

Jack in the Box offers value meals that combine a sandwich, side, and drink at a discounted price.

Catering Services

The company offers catering services for events and parties, including customized menus and delivery options.

8. Jack in the Box Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Jack in the Box Inc. faces moderate threat from substitutes, as customers have various options for quick-service restaurants and fast food. However, the company's unique menu offerings and convenience factor mitigate this threat to some extent.

Bargaining Power Of Customers

Jack in the Box Inc. faces high bargaining power from customers, as they have numerous options for dining out and can easily switch to competitors. The company needs to focus on customer loyalty and retention to mitigate this threat.

Bargaining Power Of Suppliers

Jack in the Box Inc. has a relatively low bargaining power from suppliers, as it has a diversified supply chain and can negotiate better prices due to its large scale of operations.

Threat Of New Entrants

Jack in the Box Inc. faces a moderate threat from new entrants, as the fast-food industry is highly competitive and new players can enter the market. However, the company's established brand and scale of operations provide some barriers to entry.

Intensity Of Rivalry

Jack in the Box Inc. operates in a highly competitive industry, with intense rivalry among established players. The company needs to focus on differentiating its offerings and improving operational efficiency to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 129.38%
Debt Cost 3.95%
Equity Weight -29.38%
Equity Cost 13.05%
WACC 1.27%
Leverage -440.32%

11. Quality Control: Jack in the Box Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Flanigan's

A-Score: 5.7/10

Value: 9.0

Growth: 3.8

Quality: 4.8

Yield: 4.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
The Cheesecake Factory

A-Score: 4.9/10

Value: 4.6

Growth: 4.9

Quality: 4.7

Yield: 4.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Biglari

A-Score: 4.3/10

Value: 3.7

Growth: 2.3

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Bloomin Brands

A-Score: 3.9/10

Value: 7.8

Growth: 2.0

Quality: 3.0

Yield: 8.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Jack in the Box

A-Score: 3.1/10

Value: 7.5

Growth: 0.8

Quality: 3.4

Yield: 4.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Ark Restaurants

A-Score: 3.0/10

Value: 6.5

Growth: 2.3

Quality: 3.6

Yield: 1.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.86$

Current Price

9.86$

Potential

0.00%

Expected Cash-Flows