Jack in the Box Inc. Reports First Quarter 2026 Earnings

Jack in the Box same-store sales of (6.7%)

Diluted EPS from continuing operations of $0.75 and Operating EPS of $1.00

SAN DIEGO, Calif.--(BUSINESS WIRE)--Jack in the Box Inc. (NASDAQ: JACK) announced financial results for the first quarter ended January 18, 2026.

The Company completed the sale of Del Taco Holdings Inc. (“Del Taco”) on December 22, 2025. The Del Taco results are included in discontinued operations for all periods presented.

“Our results for the quarter were in line with our expectations. We remain focused on the fundamentals, simplifying the business, and delivering on our 'JACK on Track' commitments as we build a stronger foundation for sustainable growth,” said Lance Tucker, Jack in the Box Chief Executive Officer. “Initial guest response to our 75th anniversary celebrations has been encouraging, and while there is more work ahead, we believe the steps we are taking to drive a better and more consistent guest experience will lead to much improved performance as we move through the year.”

Jack in the Box Performance

Same-store sales decreased 6.7% in the first quarter, comprised of franchise same-store sales decline of 7.0% and company-owned same-store sales decline of 4.7%. Sales performance resulted from a decline in transactions and mix, partially offset by an increase in price. Systemwide sales for the first quarter decreased 7.1%.

Restaurant-Level Margin⁽¹⁾, a non-GAAP measure, was $21.3 million, or 16.1%, down from $31.0 million, or 23.2%, a year ago driven primarily by commodity cost inflation, the negative impact from rolling over prior year beverage benefit, and a change in the mix of restaurants, partially offset by increased price.

Franchise-Level Margin⁽¹⁾, a non-GAAP measure, was $84.1 million, or 38.6%, a decrease from $97.1 million, or 40.9%, a year ago. The decrease was primarily due to lower sales driving lower rent revenue and royalties and a decrease in the number of restaurants as part of the 'JACK on Track' closure program.

Jack in the Box net restaurant count decreased in the first quarter, with six restaurant openings and 14 restaurant closures.

Jack in the Box Same-Store Sales:	16 Weeks Ended
	January 18, 2026	January 19, 2025
Company	(4.7 %)	(0.4 %)
Franchise	(7.0 %)	0.5 %
System	(6.7 %)	0.4 %

Jack in the Box Restaurant Counts:

	2026						2025
	Company		Franchise		Total		Company	Franchise		Total
Restaurant count at Q4	150		1,986		2,136		150	2,041		2,191
New	1		5		6		2	3		5
Closed	(2	)	(12	)	(14	)	—	(6	)	(6	)
Restaurant count at end of Q1	149		1,979		2,128		152	2,038		2,190
Q1'26 QTD Net Restaurant Change	(1	)	(7	)	(8	)
QTD Net Restaurant Change	(0.7	)%	(0.4	)%	(0.4	)%

Total revenues decreased 5.8% to $349.5 million, compared to $371.1 million in the prior year quarter. The lower revenue is primarily the result of same-store sales declines, as well as a lower number of restaurants.

The SG&A expense for the first quarter was $37.0 million, a decrease of $4.1 million compared to the prior year quarter. The decrease was due primarily to the fluctuation of $3.8 million in the cash surrender value of our COLI policies. When excluding net COLI gains, G&A was 2.5% of systemwide sales.

Other operating expenses, net, were $8.1 million, an increase of $5.5 million compared to the prior year quarter. The increase was primarily due to higher professional fees associated with the proxy contest and a tax refund settlement, as well as increased costs for closed restaurants and cancellation of related projects. These costs were partially offset by gains from real estate sales.

Net earnings from continuing operations was $14.4 million for the first quarter of fiscal 2026. This is compared with net earnings from continuing operations of $31.0 million for the first quarter of the prior year.

Adjusted EBITDA⁽³⁾, a non-GAAP measure, was $68.2 million in the first quarter of fiscal 2026 compared with $88.8 million for the prior year quarter.

The income tax provision for continuing operations reflects an effective tax rate of 32.4% in the first quarter of 2026 as compared to 30.0% in the prior year. This was primarily due to the establishment of valuation allowance on cumulative interest deduction limitations from current and prior fiscal years and the nondeductible component of share-based compensation largely offset by a favorable state refund claim settlement. The non-GAAP operating EPS tax rate for the first quarter of 2026 was 31.2%, primarily due to the establishment of valuation allowance on current fiscal year’s interest deduction limitation.

First quarter diluted earnings per share from continuing operations was $0.75 in 2026, compared to $1.61 in the prior year quarter. Operating Earnings Per Share⁽²⁾, a non-GAAP measure, was $1.00 in the first quarter of fiscal 2026 compared with $1.86 in the prior year quarter.

(1) Restaurant-Level Margin and Franchise-Level Margin are non-GAAP measures. These non-GAAP measures are reconciled to earnings (loss) from operations, the most comparable GAAP measure, in the attachment to this release. See "Reconciliation of Non-GAAP Measurements to GAAP Results."
(2) Operating Earnings Per Share represents the diluted earnings per share on a GAAP basis, excluding certain adjustments. See "Reconciliation of Non-GAAP Measurements to GAAP Results." Operating earnings per share may not add due to rounding.
(3) Adjusted EBITDA represents net earnings on a GAAP basis excluding certain adjustments. See "Reconciliation of Non-GAAP Measurements to GAAP Results."

Del Taco Discontinued Operations

On October 15, 2025, the Company entered into a definitive agreement to sell Del Taco, which owns and operates the Company’s Del Taco restaurant operations, to Yadav Enterprises, Inc., a California corporation (“Buyer”) and Anil Yadav (“Buyer Guarantor”), which was completed on December 22, 2025. As a result of the sale, operating results for Del Taco are included in discontinued operations for all periods presented. There were losses from discontinued operations, net of taxes of $16.8 million for the first quarter of 2026, compared with earnings from discontinued operations, net of taxes of $2.7 million in the prior year quarter.

Capital Allocation

The Company did not repurchase any shares of our common stock in the first quarter. As of the end of the first quarter, there was $175.0 million remaining under the Board-authorized stock buyback program.

During the first quarter, the Company prepaid $105.0 million of the 2019-1 Class A-2-II Notes.

Guidance Updates

The Company reiterates its guidance and outlook provided on November 19, 2025, for the fiscal year ending September 27, 2026.

• Jack in the Box Restaurant Count of 2,050 to 2,100
  • This includes approximately 20 new restaurant openings and approximately 50 to 100 closures, most of which will be franchise restaurants
• Same Store Sales of -1% to +1% vs. Fiscal Year 2025
  • The company expects first-quarter results to remain pressured, with sequential improvement anticipated over the balance of fiscal year 2026
• Company-Owned Restaurant Level Margin of 17 to 18%
  • This includes mid-single-digit commodity inflation and low-single-digit wage inflation
• Franchise Level Margin of $275 to $290 million
  • As the company continues to execute its “Jack on Track” plan, which includes a block closure program and selling real estate, both of which influence Franchise Level Margin, visibility into timing is limited.
• SG&A of $125 to $135 million
  • G&A, excluding selling and advertising, is expected to be approximately 2.5% of systemwide sales.
• Depreciation and Amortization of $45 to $50 million
• Adjusted EBITDA of $225 to $240 million
• Capital Expenditures of $45 to $55 million, prioritizing sales-driving investments in technology
• As previously mentioned, the company has discontinued its dividend and share repurchase program

Conference Call

The Company will host a conference call for analysts and investors on Wednesday, February 18, 2026, beginning at 2:00 p.m. PT (5:00 p.m. ET). The call will be webcast live via the Investors section of the Jack in the Box company website at http://investors.jackinthebox.com. A replay of the call will be available through the Jack in the Box Inc. corporate website for 21 days. The call can be accessed via phone by dialing [phone] and using ID 7573961.

About Jack in the Box Inc.

Jack in the Box Inc. (NASDAQ: JACK), founded and headquartered in San Diego, California, is a restaurant company that operates and franchises Jack in the Box^®, one of the nation's largest hamburger chains with approximately 2,125 restaurants across 22 states. For more information, including franchising opportunities, visit www.jackinthebox.com.

Category: Earnings

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may be identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “goals,” “guidance,” “intend,” “plan,” “project,” “may,” “will,” “would” and similar expressions. These statements are based on management’s current expectations, estimates, forecasts and projections about our business and the industry in which we operate. These estimates and assumptions involve known and unknown risks, uncertainties, and other factors that are in some cases beyond our control. Factors that may cause our actual results to differ materially from any forward-looking statements include, but are not limited to: the success of new products, marketing initiatives and restaurant remodels and drive-thru enhancements; the impact of competition, unemployment, trends in consumer spending patterns and commodity costs; the Company’s ability to achieve and manage its planned growth, which is affected by the availability of a sufficient number of suitable new restaurant sites, the performance of new restaurants, risks relating to expansion into new markets and successful franchise development; the ability to attract, train and retain top-performing personnel, litigation risks; risks associated with disagreements with franchisees; supply chain disruption; food-safety incidents or negative publicity impacting the reputation of the Company's brand; increased regulatory and legal complexities, risks associated with the amount and terms of the securitized debt issued by certain of our wholly owned subsidiaries; stock market volatility; and the risks related to the Company’s ongoing proxy contest, potential changes in board composition or corporate strategy, and the associated costs and management distraction. These and other factors are discussed in the Company’s annual report on Form 10-K and its periodic reports on Form 10-Q filed with the Securities and Exchange Commission, which are available online at http://investors.jackinthebox.com or in hard copy upon request. The Company undertakes no obligation to update or revise any forward-looking statement, whether as the result of new information or otherwise.

JACK IN THE BOX INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (In thousands, except per share data) (Unaudited)
	16 Weeks Ended
	January 18, 2026			January 19, 2025
Revenues:
Company restaurant sales	$	131,907		$	133,755
Franchise rental revenues		97,387			105,781
Franchise royalties and other		58,876			63,615
Franchise contributions for advertising and other services		61,347			67,913
		349,517			371,064
Operating costs and expenses, net:
Food and packaging		39,232			34,690
Payroll and employee benefits		46,577			44,528
Occupancy and other		24,801			23,540
Franchise occupancy expenses		66,301			67,916
Franchise support and other costs		3,760			3,301
Franchise advertising and other services expenses		63,472			68,992
Selling, general and administrative expenses		37,018			41,156
Depreciation and amortization		13,609			12,457
Pre-opening costs		59			1,457
Other operating expenses, net		8,050			2,547
		302,879			300,584
Earnings from operations		46,638			70,480
Other pension and post-retirement expenses, net		1,684			1,789
Interest expense, net		23,682			24,380
Earnings before income taxes		21,272			44,311
Income tax expense		6,883			13,315
Earnings from continuing operations	$	14,389		$	30,996
(Losses) earnings from discontinued operations, net of taxes	$	(16,847	)	$	2,690
Net (loss) earnings	$	(2,458	)	$	33,686
Net earnings (loss) per share - basic:
Earnings from continuing operations	$	0.75		$	1.63
(Losses) earnings from discontinued operations	$	(0.88	)	$	0.14
Net (loss) earnings per share ^(1)	$	(0.13	)	$	1.77
Net earnings (loss) per share - diluted:
Earnings from continuing operations	$	0.75		$	1.61
(Losses) earnings from discontinued operations	$	(0.88	)	$	0.14
Net (loss) earnings per share ^(1)	$	(0.13	)	$	1.75
Weighted-average shares outstanding:
Basic		19,136			19,050
Diluted		19,234			19,215
Dividends declared per common share	$	—		$	0.44

____________________
(1)	Earnings per share may not add due to rounding.

JACK IN THE BOX INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited)
	January 18, 2026			September 28, 2025
ASSETS
Current assets:
Cash	$	71,973		$	45,766
Restricted cash		27,398			30,282
Accounts and other receivables, net		92,437			73,744
Inventories		2,771			2,346
Prepaid expenses		12,648			13,604
Current assets held for sale		16,430			46,042
Other current assets		8,561			8,588
Total current assets		232,218			220,372
Property and equipment:
Property and equipment, at cost		1,145,008			1,150,490
Less accumulated depreciation and amortization		(808,559	)		(806,873	)
Property and equipment, net		336,449			343,617
Other assets:
Operating lease right-of-use assets		1,000,680			1,005,024
Goodwill		136,026			136,026
Deferred tax assets		62,020			61,501
Non-current assets held for sale		—			574,967
Other assets, net		254,234			251,914
Total other assets		1,452,960			2,029,432
	$	2,021,627		$	2,593,421
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt	$	28,270		$	29,458
Current operating lease liabilities		136,668			138,199
Accounts payable		45,278			56,349
Accrued liabilities		141,810			142,478
Current liabilities held for sale		—			64,139
Total current liabilities		352,026			430,623
Long-term liabilities:
Long-term debt, net of current maturities		1,564,253			1,674,235
Long-term operating lease liabilities, net of current portion		900,779			907,910
Non-current liabilities held for sale		—			377,445
Other long-term liabilities		140,607			141,479
Total long-term liabilities		2,605,639			3,101,069
Stockholders’ deficit:
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued		—			—
Common stock $0.01 par value, 175,000,000 shares authorized, 83,147,600 and 83,012,784 issued and outstanding, respectively		831			830
Capital in excess of par value		546,336			542,177
Retained earnings		1,766,747			1,769,205
Accumulated other comprehensive loss		(49,327	)		(49,858	)
Treasury stock, at cost, 64,120,270 and 64,120,270 shares, respectively		(3,200,625	)		(3,200,625	)
Total stockholders’ deficit		(936,038	)		(938,271	)
	$	2,021,627		$	2,593,421

JACK IN THE BOX INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	Sixteen Weeks Ended
	January 18, 2026			January 19, 2025
Cash flows from operating activities:
Net (loss) earnings	$	(2,458	)	$	33,686
(Losses) earnings from discontinued operations		(16,847	)		2,690
Earnings from continuing operations		14,389			30,996
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		13,609			12,457
Amortization of franchise tenant improvement allowances and incentives		1,798			1,606
Deferred finance cost amortization		1,359			1,473
Tax deficiency from share-based compensation arrangements		1,399			1,111
Deferred income taxes		9,271			(4,526	)
Share-based compensation expense		4,159			3,689
Pension and post-retirement expense		1,684			1,789
Gains on cash surrender value of company-owned life insurance		(4,044	)		(189	)
(Gains) losses on the disposition of property and equipment, net		(6,271	)		417
Impairment charges		267			610
Changes in assets and liabilities:
Accounts and other receivables		2,177			13,923
Inventories		(424	)		(94	)
Prepaid expenses and other current assets		5,266			(1,629	)
Operating lease right-of-use assets and lease liabilities		(4,664	)		(5,705	)
Accounts payable		(5,617	)		8,036
Accrued liabilities		2,656			7,873
Pension and post-retirement contributions		(2,090	)		(2,218	)
Franchise tenant improvement allowance and incentive disbursements		(1,844	)		(1,816	)
Other		(2,534	)		33,780
Cash flows provided by operating activities		30,546			101,583
Cash flows from investing activities:
Purchases of property and equipment		(23,218	)		(21,300	)
Purchases of assets intended for sale or leaseback		—			(5,724	)
Proceeds from the sale of property and equipment		10,948			—
Proceeds from the sale and leaseback of assets		3,593			—
Other		2,800			3,303
Cash flows used in investing activities		(5,877	)		(23,721	)
Cash flows from financing activities:
Repayments of borrowings on revolving credit facilities		—			(6,000	)
Principal repayments on debt		(112,313	)		(7,456	)
Dividends paid on common stock		—			(8,308	)
Proceeds from issuance of common stock		1			1
Repurchases of common stock		—			(4,999	)
Payroll tax payments for equity award issuances		(873	)		(2,336	)
Cash flows used in financing activities		(113,185	)		(29,098	)
Cash flows (used in) provided by continuing operations		(88,516	)		48,764
Net cash (used in) provided by operating activities of discontinued operations		(11,902	)		4,073
Net cash provided by (used in) investing activities of discontinued operations		118,014			(2,363	)
Net cash used in financing activities of discontinued operations		(38	)		(8	)
Net cash provided by discontinued operations		106,074			1,702
Cash and restricted cash at beginning of period, including discontinued operations cash		81,813			54,167
Cash and restricted cash at end of period, including discontinued operations cash	$	99,371		$	104,633

JACK IN THE BOX INC. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) DATA
(Unaudited)

The following table presents certain income and expense items included in our condensed consolidated statements of earnings (loss) as a percentage of total revenues, unless otherwise indicated. Percentages may not add due to rounding.

	16 Weeks Ended
	January 18, 2026		January 19, 2025
Revenues:
Company restaurant sales	37.7	%	36.0	%
Franchise rental revenues	27.9	%	28.5	%
Franchise royalties and other	16.8	%	17.1	%
Franchise contributions for advertising and other services	17.6	%	18.3	%
	100.0	%	100.0	%
Operating costs and expenses, net:
Food and packaging (1)	29.7	%	25.9	%
Payroll and employee benefits (1)	35.3	%	33.3	%
Occupancy and other (1)	18.8	%	17.6	%
Franchise occupancy expenses (2)	68.1	%	64.2	%
Franchise support and other costs (3)	6.4	%	5.2	%
Franchise advertising and other services expenses (4)	103.5	%	101.6	%
Selling, general and administrative expenses	10.6	%	11.1	%
Depreciation and amortization	3.9	%	3.4	%
Pre-opening costs	0.0	%	0.4	%
Other operating expenses, net	2.3	%	0.7	%
Earnings from continuing operations	13.3	%	19.0	%
Income tax rate (5)	32.4	%	30.0	%

____________________
(1)	As a percentage of company restaurant sales.
(2)	As a percentage of franchise rental revenues.
(3)	As a percentage of franchise royalties and other.
(4)	As a percentage of franchise contributions for advertising and other services.
(5)	As a percentage of earnings (loss) from operations and before income taxes.

Jack in the Box systemwide sales (in thousands):	16 Weeks Ended
	January 18, 2026		January 19, 2025
Company-operated restaurant sales	$	131,907	$	133,755
Franchised restaurant sales (1)		1,136,642		1,232,347
Systemwide sales (1)	$	1,268,549	$	1,366,102

____________________

(1)

Franchised restaurant sales represent sales at franchised restaurants and are revenues of our franchisees. Systemwide sales include company and franchised restaurant sales. We do not record franchised sales as revenues; however, our royalty revenues, marketing fees and percentage rent revenues are calculated based on a percentage of franchised sales. We believe franchised and systemwide restaurant sales information is useful to investors as they have a direct effect on the company's profitability.

JACK IN THE BOX INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASUREMENTS TO GAAP RESULTS
(Unaudited)

To supplement the condensed consolidated financial statements, which are presented in accordance with GAAP, the Company uses the following non-GAAP measures: Adjusted Net Income, Operating Earnings Per Share, Adjusted EBITDA, Restaurant-Level Margin and Franchise-Level Margin. Management believes that these measurements, when viewed with the Company's results of operations in accordance with GAAP and the accompanying reconciliations in the tables below, provide useful information about operating performance and period-over-period changes, and provide additional information that is useful for evaluating the operating performance of the Company's core business without regard to potential distortions.

Operating Earnings Per Share

Operating Earnings Per Share represents diluted earnings per share from continuing operations on a GAAP basis excluding restructuring, integration and other, net COLI gains, pension and post-retirement benefit costs, impairment charges, gains on the sale of real estate to franchisees, excess tax shortfall from share-based compensation arrangements, and other tax-related impacts.

Operating Earnings Per Share should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Operating Earnings Per Share provides investors with a meaningful supplement of the Company’s operating performance and period-over-period changes without regard to potential distortions.

Below is a reconciliation of Non-GAAP Adjusted Net Income to the most directly comparable GAAP measure of net income. Also below is a reconciliation of Non-GAAP Operating Earnings Per Share to the most directly comparable GAAP measure, diluted earnings per share from continuing operations:

	16 Weeks Ended
	January 18, 2026			January 19, 2025
Net earnings from continuing operations, as reported	$	14,389		$	30,996
Restructuring, integration and other (1)		11,246			1,332
Net COLI gains (2)		(2,416	)		1,391
Pension and post-retirement benefit costs (3)		1,684			1,789
Impairment charges		353			622
Gains on the sale of real estate to franchisees (4)		(4,175	)		(337	)
Excess tax shortfall from share-based compensation arrangements		1,399			1,110
Tax impact of adjustments (5)		(3,239	)		(1,176	)
Non-GAAP Adjusted Net Income	$	19,241		$	35,727
Diluted weighted-average shares outstanding		19,234			19,215
Diluted earnings per share from continuing operations – GAAP	$	0.75		$	1.61
Restructuring, integration and other (1)		0.58			0.07
Net COLI gains (2)		(0.13	)		0.07
Pension and post-retirement benefit costs (3)		0.09			0.09
Impairment charges		0.02			0.03
Gains on the sale of real estate to franchisees		(0.22	)		(0.02	)
Excess tax shortfall from share-based compensation arrangements		0.07			0.06
Tax impact of adjustments (5)		(0.17	)		(0.06	)
Operating Earnings Per Share – non-GAAP (6)	$	1.00		$	1.86

____________________
(1)	Restructuring, integration and other reflects charges that are not part of our ongoing operations, including proxy contest fees, restructuring that is not deemed discontinued operations, professional fees for tax refund settlement, and other consulting fees for discrete project-based strategic initiatives that are not expected to recur in the foreseeable future.
(2)	Net COLI gains reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies.
(3)	Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as our two legacy post-retirement plans.
(4)	Gains on the sale of real estate to franchisees included in this reconciliation as the Company expects to have higher than normal sales of real estate in an effort to pay down debt.
(5)	Tax impacts are calculated based on the non-GAAP Operating EPS tax rate of 31.2% in the current quarter and 27.2% in the prior year quarter. Tax impacts for the first quarter of 2026 also include non-recurring amounts related to a favorable state tax refund claim settlement and the establishment of valuation allowance on cumulative interest deduction limitations from prior fiscal years.
(6)	Operating Earnings Per Share may not add due to rounding.

Adjusted EBITDA

Adjusted EBITDA represents net earnings from continuing operations on a GAAP basis excluding income taxes, interest expense, net, other operating expenses, net, depreciation and amortization, amortization of cloud computing costs, amortization of favorable and unfavorable leases and subleases, net, amortization of franchise tenant improvement allowances and other, net COLI (gains)/losses, and pension and post-retirement benefit costs.

Adjusted EBITDA should be considered as a supplement to, not as a substitute for, analysis of results as reported under U.S. GAAP or other similarly titled measures of other companies. Management believes Adjusted EBITDA is useful to investors to gain an understanding of the factors and trends affecting the Company's ongoing cash earnings, from which capital investments are made and debt is serviced.

Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings from continuing operations (in thousands):

	16 Weeks Ended
	January 18, 2026			January 19, 2025
Net earnings from continuing operations, as reported	$	14,389		$	30,996
Income taxes		6,883			13,315
Interest expense, net		23,682			24,380
Other operating expenses, net (1)		8,050			2,547
Depreciation and amortization		13,609			12,457
Amortization of cloud-computing costs (2)		507			366
Amortization of favorable and unfavorable leases and subleases, net (3)		(9	)		(9	)
Amortization of franchise tenant improvement allowances and other		1,798			1,605
Net COLI (gains)/losses (4)		(2,416	)		1,391
Pension and post-retirement benefit costs (5)		1,684			1,789
Adjusted EBITDA – non-GAAP	$	68,177		$	88,837

____________________
(1)	Other operating expense, net includes: restructuring, integration and other; costs of closed restaurants; impairment charges; accelerated depreciation and gains/losses on disposition of property and equipment, net.
(2)	Amortization of cloud computing costs includes the amounts for the non-cash amortization of capitalized implementation costs related to cloud-based software arrangements that are included within selling, general and administrative expenses.
(3)	Amortization of favorable and unfavorable leases and subleases, net, which is not already included in the other operating expense, net, noted above.
(4)	Net COLI (gains)/losses reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies.
(5)	Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as the two legacy post-retirement plans.

Restaurant-Level Margin

Restaurant-Level Margin is defined as company restaurant sales less restaurant operating costs (food and packaging, labor, and occupancy costs) and is neither required by, nor presented in accordance with GAAP. Restaurant-Level Margin excludes revenues and expenses of our franchise operations and selling, general, and administrative expenses. Certain other costs are also excluded, such as depreciation and amortization, pre-opening costs, other operating expenses, net, and losses on the sale of company-operated restaurants. As such, Restaurant-Level Margin is not indicative of the overall results of the Company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Restaurant-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The Company is presenting Restaurant-Level Margin because it believes that it provides a meaningful supplement to net earnings of the company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Restaurant-Level Margin as a key performance indicator to evaluate the profitability of company-operated restaurants. Below is a reconciliation of non-GAAP Restaurant-Level Margin to the most directly comparable GAAP measure, earnings from continuing operations (in thousands):

	16 Weeks Ended
	January 18, 2026			January 19, 2025
Earnings from continuing operations - GAAP	$	46,638		$	70,480
Franchise rental revenues		(97,387	)		(105,781	)
Franchise royalties and other		(58,876	)		(63,615	)
Franchise contributions for advertising and other services		(61,347	)		(67,913	)
Franchise occupancy expenses		66,301			67,916
Franchise support and other costs		3,760			3,301
Franchise advertising and other services expenses		63,472			68,992
Selling, general and administrative expenses		37,018			41,156
Depreciation and amortization		13,609			12,457
Pre-opening costs		59			1,457
Other operating expenses, net		8,050			2,547
Restaurant-Level Margin - Non-GAAP	$	21,297		$	30,997
Company restaurant sales	$	131,907		$	133,755
Restaurant-Level Margin % - Non-GAAP		16.1	%		23.2	%

Franchise-Level Margin

Franchise-Level Margin is defined as franchise revenues less franchise operating costs (occupancy expenses, advertising contributions, and franchise support and other costs) and is neither required by, nor presented in accordance with GAAP. Franchise-Level Margin excludes revenue and expenses of our company-operated restaurants and selling, general, and administrative expenses. Certain other costs are also excluded, such as depreciation and amortization, pre-opening, other operating expenses, net, and losses on the sale of company-operated restaurants. As such, Franchise-Level Margin is not indicative of the overall results of the Company and does not accrue directly to the benefit of shareholders because of the exclusion of corporate-level expenses. Franchise-Level Margin should be considered as a supplement to, not as a substitute for, analysis of results as reported under GAAP or other similarly titled measures of other companies. The Company is presenting Franchise-Level Margin because it believes that it provides a meaningful supplement to net earnings of the Company's core business operating results, as well as a comparison to those of other similar companies. Management utilizes Franchise-Level Margin as a key performance indicator to evaluate the profitability of our franchise operations. Below is a reconciliation of non-GAAP Franchise-Level Margin to the most directly comparable GAAP measure, earnings from continuing operations (in thousands):

	16 Weeks Ended
	January 18, 2026			January 19, 2025
Earnings from continuing operations - GAAP	$	46,638		$	70,480
Company restaurant sales		(131,907	)		(133,755	)
Food and packaging		39,232			34,690
Payroll and employee benefits		46,577			44,528
Occupancy and other		24,801			23,540
Selling, general and administrative expenses		37,018			41,156
Depreciation and amortization		13,609			12,457
Pre-opening costs		59			1,457
Other operating expenses, net		8,050			2,547
Franchise-Level Margin - Non-GAAP	$	84,077		$	97,100
Franchise rental revenues	$	97,387		$	105,781
Franchise royalties and other		58,876			63,615
Franchise contributions for advertising and other services		61,347			67,913
Total franchise revenues	$	217,610		$	237,309
Franchise-Level Margin % - Non-GAAP		38.6	%		40.9	%

APPENDIX A
JACK IN THE BOX INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (In thousands, except per share data) (Unaudited)
	Quarterly Period Ended											Fiscal Year
	January 19, 2025		April 13, 2025			July 6, 2025			September 28, 2025			September 28, 2025
Revenues:
Company restaurant sales	$	133,755	$	95,095		$	94,112		$	93,753		$	416,715
Franchise rental revenues		105,781		77,935			76,538			72,481			332,735
Franchise royalties and other		63,615		45,754			44,604			44,343			198,316
Franchise contributions for advertising and other services		67,913		46,947			47,147			44,193			206,200
		371,064		265,731			262,401			254,770			1,153,966
Operating costs and expenses, net:
Food and packaging		34,690		26,437			26,949			28,396			116,472
Payroll and employee benefits		44,528		32,178			32,465			31,618			140,789
Occupancy and other		23,540		17,804			17,840			18,623			77,807
Franchise occupancy expenses		67,916		51,153			50,829			49,314			219,212
Franchise support and other costs		3,301		3,198			3,314			2,693			12,506
Franchise advertising and other services expenses		68,992		48,029			47,994			46,393			211,408
Selling, general and administrative expenses		41,156		28,221			20,577			27,887			117,841
Depreciation and amortization		12,457		8,069			8,671			10,404			39,601
Pre-opening costs		1,457		599			866			2,482			5,404
Other operating expenses, net		2,547		1,760			4,531			5,467			14,305
Gains on the sale of company-operated restaurants		—		—			—			(569	)		(569	)
		300,584		217,448			214,036			222,708			954,776
Earnings from operations		70,480		48,283			48,365			32,062			199,190
Other pension and post-retirement expenses, net		1,789		1,341			1,342			1,342			5,814
Interest expense, net		24,380		18,351			18,135			18,228			79,094
Earnings before income taxes		44,311		28,591			28,888			12,492			114,282
Income tax expense		13,315		7,892			6,049			1,209			28,465
Earnings from continuing operations	$	30,996	$	20,699		$	22,839		$	11,283		$	85,817
Earnings (losses) from discontinued operations, net of taxes	$	2,690	$	(162,927	)	$	(812	)	$	(5,487	)	$	(166,536	)
Net earnings (loss)	$	33,686	$	(142,228	)	$	22,027		$	5,796		$	(80,719	)
Net earnings (loss) per share - basic:
Earnings from continuing operations	$	1.63	$	1.09		$	1.20		$	0.59		$	4.50
Earnings (losses) from discontinued operations	$	0.14	$	(8.56	)	$	(0.04	)	$	(0.29	)	$	(8.74	)
Net earnings (loss) per share	$	1.77	$	(7.47	)	$	1.16		$	0.30		$	(4.24	)
Net earnings (loss) per share - diluted:
Earnings from continuing operations	$	1.61	$	1.09		$	1.19		$	0.59		$	4.50
Earnings (losses) from discontinued operations	$	0.14	$	(8.56	)	$	(0.04	)	$	(0.29	)	$	(8.74	)
Net earnings (loss) per share	$	1.75	$	(7.47	)	$	1.15		$	0.30		$	(4.24	)
Weighted-average shares outstanding:
Basic		19,050		19,043			19,061			19,064			19,054
Diluted		19,215		19,043			19,152			19,154			19,054

APPENDIX B

JACK IN THE BOX INC. AND SUBSIDIARIES
QUARTERLY RECONCILIATION OF ADJUSTED EBITDA
(In thousands, except per share data)
(Unaudited)

Below is a reconciliation of non-GAAP Adjusted EBITDA to the most directly comparable GAAP measure, net earnings from continuing operations (in thousands):

	Quarterly Period Ended												Fiscal Year ^(6)
	January 19, 2025			April 13, 2025			July 6, 2025			September 28, 2025			September 28, 2025
Net earnings from continuing operations	$	30,996		$	20,699		$	22,839		$	11,283		$	85,817
Income taxes		13,315			7,892			6,049			1,209			28,465
Interest expense, net		24,380			18,351			18,135			18,228			79,094
Gains on the sale of company-operated restaurants		—			—			—			(569	)		(569	)
Other operating expenses, net (1)		2,547			1,760			4,531			5,467			14,305
Depreciation and amortization		12,457			8,069			8,671			10,404			39,601
Amortization of cloud-computing costs (2)		366			238			238			244			1,086
Amortization of favorable and unfavorable leases and subleases, net(3)		(9	)		(7	)		(7	)		(7	)		(30	)
Amortization of franchise tenant improvement allowances and other		1,605			1,762			1,411			1,382			6,161
Net COLI losses/(gains) (4)		1,391			1,407			(6,062	)		(3,618	)		(6,882	)
Pension and post-retirement benefit costs (5)		1,789			1,342			1,342			1,342			5,814
Adjusted EBITDA – non-GAAP	$	88,837		$	61,513		$	57,147		$	45,365		$	252,862

____________________
(1)	Other operating expense, net includes: restructuring, integration and other; costs of closed restaurants; impairment charges; accelerated depreciation and gains/losses on disposition of property and equipment, net.
(2)	Amortization of cloud computing costs includes the amounts for the non-cash amortization of capitalized implementation costs related to cloud-based software arrangements that are included within selling, general and administrative expenses.
(3)	Amortization of favorable and unfavorable leases and subleases, net, which is not already included in the other operating expense, net, noted above.
(4)	Net COLI losses/(gains) reflect market-based adjustments on the company-owned life insurance policies, net of changes in our non-qualified deferred compensation obligation supported by these policies.
(5)	Pension and post-retirement benefit costs relating to our two legacy defined benefit pension plans, as well as the two legacy post-retirement plans.
(6)	Fiscal Year totals may not add due to rounding.