Jack in the Box Swings to $2.5M Net Loss in Q1 2026 as Revenue Slips 5.8%
Jack in the Box Inc. (NASDAQ: JACK), a fast-food restaurant chain, reported a net loss of $2.5 million for the quarter ending January 18, 2026, a sharp reversal from the $33.7 million profit posted in the same quarter a year earlier.
Jack in the Box Inc. (NASDAQ: JACK), a fast-food restaurant chain, reported a net loss of $2.5 million for the quarter ending January 18, 2026, a sharp reversal from the $33.7 million profit posted in the same quarter a year earlier. The company's total revenue declined 5.8% to $349.5 million from $371.1 million in the prior-year quarter. Read more earnings reports.
Operating income dropped 33.8% to $46.6 million from $70.5 million in the year-ago period. The company recorded a $49.7 million loss from discontinued operations during the quarter, compared to a $3.7 million gain from discontinued operations in the same quarter last year. This swing in discontinued operations heavily impacted the bottom line.
The company's franchise operations, which generated $131.9 million in revenue, remained nearly flat compared to $133.8 million a year earlier. Company restaurant sales fell 7.9% to $97.4 million from $105.8 million. Franchise rental revenue decreased to $58.9 million from $63.6 million, while other franchise revenues declined to $61.3 million from $67.9 million in the prior-year quarter.
Jack in the Box reported diluted earnings per share of negative $0.13, compared to diluted earnings of $1.75 per share in the year-ago quarter. General and administrative expenses rose to $27.3 million from $25.1 million, while overall selling, general and administrative expenses declined to $37.0 million from $41.2 million.
The company's total assets decreased to $2.02 billion as of January 18, 2026, from $2.59 billion at the end of fiscal 2025. The decline was largely driven by a sharp reduction in discontinued operations assets, which fell to $16.4 million from $621.0 million. Total stockholders' deficit narrowed slightly to negative $936.0 million from negative $938.3 million.
Long-term debt stood at $1.60 billion as of quarter-end, with the company carrying $156.9 million in current debt obligations. Current assets totaled $232.2 million, up from $220.4 million at the end of the prior fiscal year. Property, plant and equipment decreased to $336.4 million from $343.6 million.
Financial Summary
| Metric | Q1 2026 (ending Jan 18, 2026) | Q1 2025 (ending Jan 19, 2025) |
|---|---|---|
| Total Revenue | $349.5 million | $371.1 million |
| Operating Income | $46.6 million | $70.5 million |
| Net Income (Loss) | ($2.5 million) | $33.7 million |
| Diluted EPS | ($0.13) | $1.75 |
| Total Assets | $2.02 billion | $2.59 billion (Sept 28, 2025) |
| Total Stockholders' Equity | ($936.0 million) | ($938.3 million) (Sept 28, 2025) |