Jack in the Box Q3 adjusted operating EPS beats estimates

Jack In The Box

12/08/2026 21:18

Overview
U.S. hamburger chain's Q3 revenue fell 1.8% yr/yr due to lower same-store sales and restaurant count
Adjusted EPS for Q3 beat analyst expectations
Company says sales decline was driven by fewer transactions, partially offset by price increases

Outlook
Jack in the Box expects fiscal 2026 restaurant count of about 2,100 with 25 openings, 50-60 closures
Company expects fiscal 2026 company-owned restaurant margin of about 16.5%, with mid-single-digit commodity inflation
Jack in the Box maintains guidance for low single-digit same-store sales decline for fiscal 2026

Result Drivers
LOWER TRANSACTIONS - Co said sales performance was primarily driven by a decline in customer transactions, partially offset by higher prices
RESTAURANT CLOSURES - Lower revenue was also attributed to a reduced number of restaurants, with more closures than openings in the quarter
MARGIN PRESSURE - Commodity cost inflation and changes in restaurant mix weighed on restaurant-level margin
FRANCHISE PROFITABILITY - Franchise-level margin decreased due to lower sales, reduced rent and royalty revenue, fewer restaurants, and higher bad debt expense

Company press release: ID:nBw5143LFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Company Restaurant Sales
 
$96.27 mln
 
Q3 non-GAAP Operating EPS
Beat
$0.96
$0.88 (17 Analysts)
Q3 EPS
 
$1.04
 
Q3 Net Income
 
$20.12 mln
 
Q3 Adjusted EBITDA
 
$61.20 mln
 
Q3 Operating Income
 
$52.80 mln
 
Q3 Pretax Profit
 
$33.36 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and no "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 $15.00, about 16% below its August 11 closing price of $17.86
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 3 three months ago

Reuters Recommended Reads
Aug 11 - For McDonald's and rivals, cheap deals no longer do the trick
Aug 12 - Brinker Q4 revenue slightly beats on higher menu pricing, guest traffic
Aug 12 - Peltz-led group preparing bid to take Wendy's private, source says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)