Jack in the Box Q3 adjusted EPS misses estimates

Jack In The Box

06/08/2025 21:57

Overview

Jack in the Box Q3 revenue falls 9.8%, driven by lower sales and refranchising

Adjusted EPS of $1.02 misses analyst expectations, per LSEG data

Same-store sales decline 7.1% for Jack in the Box, 2.6% for Del Taco

Outlook

Jack in the Box expects FY same-store sales to decline low- to mid-single digits

Company projects FY adjusted EBITDA of $270 mln to $275 mln

Jack in the Box plans 30 to 35 gross restaurant openings in FY

Company-owned restaurant level margin expected at 19% to 21%

Result Drivers

SAME-STORE SALES DECLINE - Jack in the Box same-store sales fell 7.1% in Q3, with declines in both franchise and company-owned locations, driven by a drop in transactions and mix, partially offset by price increases

HIGHER COSTS - Restaurant-level margin decreased to 17.9% from 21% due to lower sales, higher labor costs, commodity inflation, and increased utility and other operating costs, with some offset from favorable beverage funding contracts and increased prices

RESTAURANT CLOSURES - Net restaurant count decreased by 15 units, with 13 closures related to the 'JACK on Track' block closure program

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Company Restaurant Sales
$140.93 mln
Q3 Adjusted EPS
Miss
$1.02
$1.17 (18 Analysts)
Q3 EPS
$1.15
Q3 Net Income
$22.03 mln
Q3 Adjusted EBITDA
$61.60 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 14 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the restaurants & bars peer group is "buy."

Wall Street's median 12-month price target for Jack in the Box Inc is $25.00, about 22% above its August 5 closing price of $19.50

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBw7nClFRa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)