JACK earnings analysis
What we found in JACK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- 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 they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing JACK makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever