10-Q · May 13, 2026
Jack in the Box Inc. reported Q2 2026 diluted EPS of $0.76, exceeding estimates of $0.74, while revenue was $254.3 million, slightly below expectations. Same-store sales decreased by 2.8% for the quarter. The company…
JACK earnings analysis
10-Q · Filed August 12, 2026 · Our reading of the company's report
The latest report
Jack in the Box delivered $257.7 million of revenue, down 1.8% year over year, while operating income increased 9.2% to $52.8 million and operating margin expanded to 20.5% from 18.4%. Diluted EPS declined to $1.03 from…
Read full summary
Jack in the Box delivered $257.7 million of revenue, down 1.8% year over year, while operating income increased 9.2% to $52.8 million and operating margin expanded to 20.5% from 18.4%. Diluted EPS declined to $1.03 from $1.15 as the effective tax rate rose to 36.9% from 20.9%, and same-store sales fell 1.1%. Liquidity was supported by $71.8 million of cash and restricted cash plus $54.6 million of unused revolver capacity, but lower operating cash flow, franchisee payment delays and leverage above the 5.25x debt-sweep threshold remain significant concerns.
Reported figures
- Earnings per share
- $1.03
- Operating margin
- 20.5%
- Segment
- Jack in the Box: revenue $257.7 million, up 2.0% versus $252? no prior-period filing comparison disclosed; down 1.8% versus $262.4 million prior year. Segment profit was $76.3 million, up 4.8% from $72.8 million.
What stood out
-
Operating Margin Expanded
Operating income increased to $52.8 million from $48.4 million, lifting operating margin to approximately 20.5% from 18.4% year over year. The improvement was supported by a $9.6 million increase in real-estate disposal gains and lower SG&A.
-
Lower SG&A and Real-Estate Gains
SG&A declined to $17.0 million from $20.6 million, while net gains on property and equipment dispositions were $9.2 million in the quarter versus a $0.3 million loss in the prior-year quarter.
-
Segment Profit Improved
Segment profit rose to $76.3 million from $72.8 million despite revenue declining to $257.7 million from $262.4 million. Segment profit margin increased to approximately 29.6% from 27.7%.
-
Capex Declined, Cash Flow Positive
Operating cash flow was $56.6 million year to date, compared with $118.1 million in the prior-year period, while capital expenditures declined to $44.1 million from $60.3 million. The resulting implied cash generation before other investing and financing flows was approximately $12.5 million.
-
Debt Balance Reduced
Total debt declined to $1.492 billion from $1.716 billion at fiscal year-end after $762.6 million of principal repayments, including $479.9 million of 2022 notes repaid through the $500.0 million refinancing issuance.
-
Liquidity Remains Available
The company ended the quarter with $71.8 million of cash and restricted cash and $54.6 million of unused borrowing capacity under its $150.0 million Variable Funding Notes.
What to watch
-
Sales and Restaurant Base Declines
Total revenue fell to $257.7 million from $262.4 million, while system same-store sales declined 1.1% in the quarter. Franchised restaurant sales fell to $847.8 million from $863.7 million, and the average franchise restaurant count decreased to 1,968 from 2,026.
-
Franchise Margin Pressure
Franchise revenue declined to $161.4 million from $168.3 million, while franchise costs decreased less, to $101.0 million from $102.1 million. Franchise costs therefore rose to 62.6% of franchise revenue from 60.7%.
-
Commodity Inflation
Management reported commodity inflation of 5.4% in the quarter and 6.0% year to date, with the greatest impacts in beef, tacos, produce and beverages. Food and packaging costs increased to 29.3% of company restaurant sales from 28.6%.
-
Franchisee Liquidity and Receivables
Management said operating cash flows may continue to be affected by franchisee payment delays and deferrals. Accounts and other receivables increased to $106.7 million from $73.7 million, and year-to-date cash flow was reduced by approximately $11.0 million from delayed franchisee payments.
-
Elevated Leverage and Debt Sweeps
The Senior ABS Leverage Ratio was above 5.25x at July 5, 2026, requiring $23.3 million of cash-sweep prepayments to be included in current maturities. The company also stated its leverage ratio was above 5.0x, requiring scheduled amortization payments.
-
Higher Tax Rate Reduced EPS
The effective tax rate increased to 36.9% from 20.9% year over year, with quarterly income tax expense rising to $12.3 million from $6.0 million. The increase contributed to diluted EPS declining to $1.03 from $1.15 despite higher operating income.
Management's outlook
The 10-Q provides no numeric EPS or revenue guidance and does not state a change versus prior company guidance. Management expects operating cash flows combined with the securitized financing facility to meet capital expenditure, working capital and debt-service requirements for at least the next twelve months and the foreseeable future.
Earlier filings 1
Smart money in JACK
Totals from the last full session. Insider and politician figures cover 90 days.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.
See every JACK trade live.
The free pages stop at the last full session. Trader shows every trade as it prints.
Start tracking No card needed.