JACK · Jack in the Box Inc.

Jack in the Box reported second quarter fiscal 2026 results that fell short of expectations, with system same-store sales declining 3.8% driven by a drop in transactions partially offset by price increases. Restaurant-level margin contracted to 16.4% from 19.6% a year ago, pressured by commodity cost inflation and mix changes, while franchise-level margin decreased to 37.9% from 40.0% due to lower sales and fewer restaurants from the 'JACK on Track' closure program. Diluted EPS from continuing operations was $0.65, down from $1.09, and Operating EPS (non-GAAP) was $0.76 versus $1.25. Management noted that trends have improved into the third quarter. The company updated its fiscal 2026 guidance, now expecting a low single-digit same-store sales decline, Adjusted EBITDA of $225-$235 million, and restaurant count of 2,050-2,100. In a separate leadership transition, the Board appointed Mark King as Interim CEO and Executive Chairman, effective immediately, succeeding Lance Tucker who departed on May 8. King, a former CEO of Taco Bell and Xponential Fitness, will receive a monthly salary of $125,000 and a $2.4 million RSU grant. Alan Smolinisky was appointed Lead Independent Director. Additionally, the company entered into cash retention awards with CFO Dawn Hooper ($465,000) and Chief Legal & Administrative Officer Sarah Super ($412,500) to ensure stability through March 2027. The departures of CEO Lance Tucker and Chief Customer and Digital Officer Ryan Ostrom were also disclosed, with severance benefits and a consulting arrangement for Tucker.