JACK IN THE BOX INC
For the period ended Jan 18, 2026. Filed Feb 18, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jan 18, 2026 · Filed Feb 18, 2026
JACK$14.09-1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-07-06; filed 2025-08-06.
0000807882-25-000043
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-01-18; filed 2026-02-18.
0000807882-26-000042
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 150 previous paragraphs and 122 current paragraphs.
77 unchanged; 30 reworded; 15 added; 40 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 20 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
On October 15, 2025, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with Yadav Enterprises, Inc., a California corporation (“Buyer”) and Anil Yadav (“Buyer Guarantor”) to sell to Buyer all of the issued and outstanding equity interests of Del Taco Holdings Inc., a Delaware corporation (“Del Taco”), which owns and operates the Company’s Del Taco restaurant operations, for an aggregate purchase price of $115.0 million in cash, subject to certain closing cash, working capital, debt and transaction expense adjustments. The Del Taco sale closed on December 22, 2025.
Current report
Franchise Operations
Current report
Franchise rental revenues decreased $8.4 million, or 7.9% compared to the prior year primarily due to lower percent rent of $6.0 million due to lower sales and a $2.3 million decrease in revenue due to fewer franchise restaurants.
Current report
Franchise occupancy expenses, primarily rent, decreased $1.6 million, or 2.4% compared to the prior year. The decrease was primarily driven by lower operating lease costs of $1.7 million due to the decrease in the number of franchise restaurants.
Current report
Information technology costs increased $1.0 million compared to the prior year, primarily due to increased spend relating to our digital platform.
Current report
Share-based compensation increased by $0.5 million compared to the prior year, primarily due to prior year forfeitures.
Current report
Insurance decreased $0.7 million compared to the prior year primarily due to group insurance reimbursements received in the current quarter.
Current report
We had income from the transition services agreement (“TSA”) following the Del Taco sale of $0.9 million in the current quarter.
Current report
The increase of $5.5 million in the other operating expenses, net, was primarily due to the increase of restructuring, integration and other of $9.9 million, partially offset by higher gains in the current year related to the sale of real estate. Current year costs include proxy contest fees, professional fees for tax refund settlement, restructuring costs not deemed to be discontinued operations, and other consulting fees for discrete project-based strategic initiatives. Prior year costs were primarily comprised of severance related to restructuring as well as consulting fees for strategic initiatives.
Current report
For the first quarter of fiscal year 2026, the Company recorded income tax expense of $6.9 million resulting in an effective tax rate of 32.4%. The effective tax rate for such period differed from the U.S. statutory tax rate 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.
Current report
For the first quarter of fiscal year 2025, the Company recorded an income tax expense of $13.3 million, resulting in an effective tax rate of 30.0%. The effective tax rate for such period differed from the U.S. statutory tax rate primarily due to the nondeductible component of share-based compensation.
Current report
Loss from Discontinued Operations
Current report
The results of operations from the sale of our Del Taco business has been reported as 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. Refer to Note 4, Discontinued Operations, in the notes to condensed consolidated financial statements, for additional information regarding discontinued operations.
Current report
The legal final maturity date of the 2019 Notes and 2022 Notes is August 2049 and February 2052, respectively, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the Notes will be repaid by the Anticipated Repayment Dates. If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture.
Current report
On January 9, 2026, the Company prepaid $105.0 million of its existing Series 2019-1 Class A-2-II Notes. The repayment was made using funds from the Del Taco Sale and is in connection with the Company’s ongoing prioritization of debt reduction as part of its “JACK on Track” plan.
Removed paragraphs (40)
Previous report
On April 23, 2025, the Company announced a multi-faceted plan, which included exploring strategic alternatives for the Del Taco brand and the possible divestiture of that business. The plan also included selling a select number of owned real estate holdings, as well as discontinuing its dividend, and directing a majority of those funds toward paying down debt. Additionally, the plan discussed a closure program, which is projected to result in the closure of approximately 150-200 underperforming Jack in the Box restaurants.
Previous report
Jack in the Box Brand
Previous report
Payroll and employee benefit costs, as a percentage of company restaurant sales, increased 2.2% in the quarter, and 2.6% year-to-date compared to the prior year. During the quarter and on a year-to-date basis, increases were primarily due to additional FUTA taxes in California as well as wage inflation. The increases were partially offset by a decrease in incentive compensation due to lower achievement levels compared to the prior year. Labor inflation was approximately 1.5% in the quarter and 9.5% year-to-date. The year-to-date inflation was primarily due to the wage increases required in California effective April 1, 2024 under AB 1228.
Previous report
Jack in the Box Franchise Operations
Previous report
Franchise rental revenues decreased $5.6 million, or 6.8% in the quarter, and $7.1 million, or 2.7% year-to-date, compared to the prior year. Decreases in both periods were primarily due to lower percentage rent of $6.8 million and $12.7 million, respectively, partially offset by lease termination fees of $1.8 million and $5.2 million, respectively, and year-to-date higher pass through property tax revenue of $1.2 million.
Previous report
Franchise occupancy expenses, primarily rent, decreased $0.2 million, or 0.4% in the quarter and increased $2.8 million, or 1.7% year-to-date compared to the prior year. On a year-to-date basis, the increase was driven by higher pass through property tax expense and common area maintenance costs of $1.8 million and higher operating lease costs of $1.4 million.
Previous report
Del Taco Brand
Previous report
Company Restaurant Operations
Previous report
Company restaurant sales decreased $19.3 million or 29.2% in the quarter and $64.4 million or 28.5% year-to-date compared to the prior year primarily due to the refranchising of 47 company-operated restaurants since the third quarter of 2024 and decreases in same-store sales compared to the prior year. The following table presents the approximate impact of changes in AUVs and the number of restaurants on company restaurant sales for each respective period on company restaurant sales (in millions):
Previous report
(1)Includes price increases of approximately 4.1%in the quarter and 6.3% year-to-date.
Previous report
Food and packaging costs, as a percentage of company restaurant sales, increased 1.0% in the quarter and decreased 0.8% year-to-date. The increase for the quarter was primarily due to unfavorable menu item mix and commodity inflation. For the year-to-date period, the decrease was primarily due to menu price increases and favorable beverage funding, partially offset by commodity inflation and unfavorable menu item mix. Commodity inflation was 4.7% in the quarter and 3.9% year-to-date. The greatest impacts on both the quarter and year-to-date inflation was seen in beef, poultry, cheese, and beverages.
Previous report
Occupancy and other costs, as a percentage of company restaurant sales, increased 1.7% in the quarter and 1.3% year-to-date compared to the prior year. In the quarter, the increase was primarily due to higher utilities and higher other operating costs including delivery fees, which was partially offset by a property tax refund received related to prior years. Year-to-date the increase was mainly due to higher costs for maintenance and repair and utilities.
Previous report
Del Taco Franchise Operations
Previous report
Franchise rental revenues increased $1.6 million, or 23.2%, in the quarter and $6.9 million, or 33.3% year-to-date compared to the prior year primarily due to higher rental income and property tax revenue resulting from new subleases related to the 47 restaurants refranchised since the third quarter of 2024.
Previous report
Franchise royalties and other increased $0.7 million, or 9.3%, in the quarter and $1.8 million, or 7.1% year-to-date, compared to the prior year primarily due to higher franchise restaurant sales resulting from refranchising.
Previous report
Franchise contributions for advertising and other services revenues increased $0.2 million, or 2.3%, in the quarter and was essentially flat year-to-date compared to the prior year primarily due to increased franchise marketing contributions resulting from the 47 restaurants refranchised since the third quarter of 2024, partially offset by lower IT support revenue.
Previous report
Franchise occupancy expenses, primarily rent, increased $1.5 million, or 20.9%, in the quarter and $7.1 million, or 34.4% year-to-date, compared to the prior year primarily due to higher operating lease costs in the current year from refranchising.
Previous report
Franchise support and other costs increased $0.5 million, or 56.5%, in the quarter and $1.6 million, or 45.5% year-to-date compared to the prior year primarily due to higher bad debt expense.
Previous report
Franchise advertising and other service expenses decreased $0.2 million, or 2.4%, in the quarter and $0.3 million, or 1.3% year-to-date, compared to the prior year. For both the quarter and year-to-date periods, decreases in IT costs were partially offset by increases in marketing expense resulting from the 47 restaurants refranchised since the third quarter of 2024. For the year-to-date period, a decrease in equipment sales to franchisees also contributed to the decrease.
Previous report
Company-Wide Results
Previous report
Incentive compensation decreased by $2.0 million in the quarter and $3.1 million on a year-to-date basis as compared to the prior year, primarily due to lower achievement levels for the Company’s annual incentive plan.
Previous report
Share-based compensation decreased by $0.2 million in the quarter and $4.2 million on a year-to-date basis as compared to the prior year, primarily due to current year forfeitures and lower achievement levels for performance-based awards.
Previous report
Litigation matters were essentially flat in the quarter, and increased $0.5 million on a year-to-date basis as compared to the prior year, primarily due to the timing of litigation developments. Refer to Note 14, Commitments and Contingencies, in the condensed consolidated financial statements for additional information related to the legal matters.
Previous report
Insurance increased $3.3 million in the quarter and $3.1 million on a year-to-date basis, as compared to the prior year primarily due to rolling over favorable adjustments for positive development factors in the prior year related to workers compensation and general liability claims.
Previous report
Impairment of Goodwill and Intangible Assets
Previous report
During the second quarter of 2025, the Company had identified additional triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be further impaired, including i) continued negative trend in Del Taco same store sales, ii) unfavorable changes in the economic environment specifically impacting our industry, including inflation and interest rates, iii) the potential for a divestment of Del Taco, and iv) a sustained lower share price. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $25.3 million for the second quarter of 2025. The valuation used a blended approach with a discounted cash flow analysis in conjunction with a market approach. Assumptions and estimates used in determining fair value include future revenues, operating costs, new store openings, capital expenditures, a discount rate that approximates the Company’s weighted average cost of capital and a selection of comparable companies. The Company determined that there was no such triggering event for the Jack in the Box reporting unit.
Previous report
As a result of the franchisee acquisition during the third quarter of 2025, the Company recognized additional goodwill of $6.3 million. This additional goodwill was fully impaired based on the results of the quantitative impairment analysis performed in the second quarter of 2025.
Previous report
During the second quarter of 2025, the Company also performed a quantitative analysis over its indefinte-lived intangible trademark asset and as a result, the Company recorded impairment of $177.9 million on the Del Taco trademark asset as noted below. During the third quarter of 2025, the Company performed a qualitative analysis over its indefinte-lived intangible trademark asset, noting no further impairment was deemed necessary.
Previous report
Other operating expenses, net decreased less than $0.1 million in the quarter and $2.9 million on a year-to-date basis. For the quarter, the decrease was primarily due to the decrease of integration and strategic initiatives of $2.7 million, partially offset by $1.8 million of higher costs for closed restaurants as well as $0.6 million of higher operating restaurant impairment charges. For the year-to-date period, the decrease was primarily due to the decrease of integration and strategic initiatives of $10.9 million, partially offset by $2.9 million of additional costs of closed restaurants, $2.5 million of additional operating restaurant impairment charges, and a $2.4 million acquisition gain in the prior year.
Previous report
Gains and Losses on the Sale of Company-Operated Restaurants
Previous report
For the year-to-date period in 2025, the Company sold 13 Del Taco company-operated restaurants, for which the Company recognized a net gain on the sale of company-operated restaurants of $2.6 million. For the year-to-date period in 2024, the net loss on the sale of company-operated restaurants of $1.4 million, was comprised of a $2.2 million impairment of assets held for sale related to a Del Taco refranchising transaction, partially offset by additional proceeds received in connection with the extension of franchise agreements and the resolution of certain contingencies related to the sale of restaurants in prior years.
Previous report
Refer to Note 3, Summary of Refranchisings and Assets Held for Sale, of the notes to the condensed consolidated financial statements for additional information regarding these transactions.
Previous report
For the third quarter and year-to-date fiscal year 2025, the Company recorded income tax benefits of $0.5 million and $20.8 million, respectively, resulting in effective tax rates of (2.4%) and 19.3%, respectively. The effective tax rates for such periods differed from the U.S. statutory tax rate primarily due to non-deductible goodwill impairment partially offset by non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans.
Previous report
For the third quarter and year-to-date fiscal year 2024, the Company recorded income tax expenses of $0.1 million and $23.3 million, respectively, resulting in effective tax rates of (0.1%) and (66.0%), respectively. The effective tax rates for such periods differed from the U.S. statutory tax rate primarily due to the impairment of non-deductible goodwill partially offset by the reversal of state deferred tax liabilities on basis difference of investments in subsidiaries and non-taxable gains from the market performance of insurance products used to fund certain non-qualified retirement plans.
Previous report
Under GAAP, the Company ordinarily calculates its provision for income taxes at the end of each interim reporting period by computing an estimated annual effective tax rate adjusted for tax items that are discrete to each period. For the third quarter of fiscal year 2024, the Company calculated its interim tax provision based on actual year-to-date results because small changes in forecasted pre-tax book income led to large differences in the estimated annual effective tax rate.
Previous report
Capital expenditures increased $3.1 million primarily due to an increase in restaurant information technology related to the rollout of a new POS system for Jack in the Box company restaurants as well as investments in digital and other restaurant technology enhancements. These increases were partially offset by decreases in corporate technology spending due to the completion of our new enterprise resource planning software implementation last year.
Previous report
Sale of Company-Operated Restaurants — The following table details proceeds received in connection with our refranchising activities in each period (dollars in thousands):
Previous report
For further information, see Note 3, Summary of Refranchisings and Assets Held for Sale, in the notes to the condensed consolidated financial statements.
Previous report
The 2022 Notes were issued in a privately placed securitization transaction pursuant to which certain of the Company’s revenue-generating assets, consisting principally of franchise-related agreements, real estate assets, and intellectual property and license agreements for the use of intellectual property, are held by the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly owned indirect subsidiaries of the Company that act as Guarantors of the Notes and that have pledged substantially all of their assets, excluding certain real estate assets and subject to certain limitations, to secure the Notes. The 2022 Notes are subject to the same covenants and restrictions as the Series 2019-1 Notes.
Previous report
Revolving credit facility —In 2022, Del Taco had entered into a syndicated revolving credit facility with an aggregate principal amount of up to $75.0 million. The credit facility matured on February 28, 2025, and was not renewed.
Reworded paragraphs (30)
Previous wording
The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal years 2025 and 2024 each include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2025 and 2024 refer to the 12 weeks (“quarter”) ended July 6, 2025 and July 7, 2024, respectively, unless otherwise indicated.
Current wording
The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Fiscal years 2026 and 2025 each include 52 weeks. Our first quarter includes 16 weeks and all other quarters include 12 weeks. All comparisons between 2026 and 2025 refer to the 16 weeks (“quarter”) ended January 18, 2026 and January 19, 2025, respectively, unless otherwise indicated.
Previous wording
Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® and Del Taco® quick-service restaurants. As of July 6, 2025, we operated and franchised 2,168 Jack in the Box quick-service restaurants, primarily in the western and southern United States, including two in Guam and three in Mexico, and 585 Del Taco quick-service restaurants across 17 states.
Current wording
Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® quick-service restaurants. As of January 18, 2026, we operated and franchised 2,128 restaurants, primarily in the western and southern United States, including two in Guam and three in Mexico.
Previous wording
The following tables summarize changes in same-store sales for Jack in the Box and Del Taco company-operated, franchised, and system restaurants:
Current wording
The following tables summarize changes in same-store sales for Jack in the Box company-operated, franchised, and system restaurants:
Previous wording
The following tables summarize year-to-date changes in the number and mix of company and franchise restaurants for our two brands:
Current wording
The following tables summarize year-to-date changes in the number and mix of Jack in the Box company and franchise restaurants:
Previous wording
The following tables summarize restaurant sales for company-operated, franchised, and systemwide sales for our two brands (in thousands):
Current wording
The following tables summarize restaurant sales for Jack in the Box company-operated, franchised, and systemwide sales (in thousands):
Previous wording
Company restaurant sales decreased $6.2 million, or 6.2% for the quarter, and $8.4 million, or 2.5% year-to-date, compared to the prior year. The following table presents the approximate impact of changes in AUVs and the number of restaurants on company restaurant sales (in millions):
Current wording
Company restaurant sales decreased $1.8 million, or 1.4% compared to the prior year. The following table presents the approximate impact of changes in AUVs and the number of restaurants on company restaurant sales (in millions):
Previous wording
Same-store sales at company-operated restaurants decreased 6.4% in the quarter and by 3.3% year-to-date compared to a year ago. The following table summarizes the change versus a year ago:
Current wording
Same-store sales at company-operated restaurants decreased 4.7% compared to a year ago. The following table summarizes the change versus a year ago:
Previous wording
(1)Includes price increases of approximately 2.3% in the quarter and 3.8% year-to-date.
Current wording
(1)Includes price increases of approximately 3.0% in the quarter.
Previous wording
Food and packaging costs, as a percentage of company restaurant sales, decreased 0.6% in the quarter, and 2.0% year-to-date compared to the prior year, due mainly to a 0.9% and 2.0% benefit, respectively, from a new beverage contract with funding retroactive to January 1, 2024, as well as menu price increases, partially offset by commodity inflation and unfavorable menu item mix. Commodity inflation was 4.0% in the quarter, and 3.3% year-to-date, with the greatest impacts for the quarter in beef, poultry, and eggs, and the greatest impacts for the year-to-date period in beef, beverages, eggs, and poultry.
Current wording
Food and packaging costs, as a percentage of company restaurant sales, increased 3.8% compared to the prior year, due mainly to commodity inflation, a non-recurring benefit from a new supply chain contract in the prior year, and unfavorable menu item mix, offset by menu price increases. Commodity inflation was 7.1% in the quarter, with the greatest impacts in beef, tacos, beverages, and poultry.
Previous wording
Payroll and employee benefit costs, as a percentage of company restaurant sales, increased 1.0% in the quarter and 2.4% year-to-date, compared to the prior year. The increase was primarily due to higher insurance and CA unemployment payroll tax adjustment, partially offset by wage deflation. There was labor deflation of 0.5% in the quarter and inflation of 9.2% year-to-date.
Current wording
Payroll and employee benefit costs, as a percentage of company restaurant sales, increased 2.0% compared to the prior year primarily due to a change in the mix of restaurants. Labor inflation was approximately 0.2% in the quarter.
Previous wording
Occupancy and other costs, as a percentage of company restaurant sales, increased 1.6% in the quarter, and 1.4% year-to-date compared to the prior year. The increases on both a quarter-to-date and year-to-date basis were primarily due to sales deleverage, higher rent, utilities, and other operating costs including delivery fees.
Current wording
Occupancy and other costs, as a percentage of company restaurant sales, increased 1.2% compared to the prior year. The increase was primarily due to higher rent, utilities, and other operating costs.
Previous wording
Franchise royalties and other decreased $3.2 million, or 6.7% in the quarter, and $4.7 million, or 3.0% year-to-date compared to the prior year primarily due to lower royalty income driven by lower sales.
Current wording
Franchise royalties and other decreased $4.7 million, or 7.4% compared to the prior year primarily due to lower royalty income of $3.7 million driven by lower sales and a decrease in royalties of $1.0 million due to a decrease in the number of franchise restaurants.
Previous wording
Franchise contributions for advertising and other services revenues decreased $4.3 million, or 8.3% in the quarter and $7.0 million, or 4.1% year-to-date, as compared to the prior year due mainly to lower sales driving marketing contributions lower by $3.4 million and $5.4 million, respectfully.
Current wording
Franchise contributions for advertising and other services revenues decreased $6.6 million, or 9.7% compared to the prior year due mainly to lower sales and a decrease in the number of restaurants driving marketing contributions lower by $3.8 million and $1.1 million, respectively.
Previous wording
Franchise support and other costs increased $0.4 million, or 14.5% and $0.4 million, or 4.4% year-to-date compared to the prior year.
Current wording
Franchise support and other costs increased $0.5 million, or 13.9% compared to the prior year.
Previous wording
Franchise advertising and other service expenses decreased $4.8 million, or 9.1% in the quarter, and $9.7 million or 5.5% year-to-date compared to the prior year. The decrease is primarily due to lower sales driving lower marketing expenses, as well as lower franchise IT support costs.
Current wording
Franchise advertising and other service expenses decreased $5.5 million, or 8.0% compared to the prior year. The decrease is primarily due to lower sales and fewer restaurants driving lower marketing expenses.
Previous wording
Depreciation and amortization for the quarter ended July 6, 2025 decreased $1.0 million in the quarter and $2.9 million year-to-date compared to the prior year period primarily due to the 47 Del Taco restaurants refranchised since a year ago, as well as certain Jack in the Box franchise assets becoming fully depreciated. These decreases were partially offset by increases for new technology assets and new company operated restaurants.
Current wording
Depreciation and amortization for the quarter ended January 18, 2026 increased $1.2 million compared to the prior year period primarily due to increases for new technology assets placed in service and new company-operated restaurants.
Previous wording
Advertising costs mainly represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs decreased $0.9 million in the quarter and $0.6 million on a year-to-date basis as compared to the prior year, primarily due to a decrease in company-operated restaurant sales in the current year, partially offset by an increase in expenses related to new markets and third party digital sponsorships.
Current wording
Advertising costs mainly represent company contributions to our marketing funds and are generally determined as a percentage of company-operated restaurant sales. Advertising costs increased $0.7 million compared to the prior year, primarily due to an increase in expenses related to opting into third party digital sponsorships, partially offset by a decrease in company-operated restaurant sales in the current year.
Previous wording
The cash surrender value of our company-owned life insurance (“COLI”) policies, net of changes in our non-qualified deferred compensation obligation supported by these policies, are subject to market fluctuations. The changes in market values had a favorable impact of $2.8 million in the quarter and an unfavorable impact of $6.0 million on a year-to-date basis, compared to the prior year.
Current wording
The cash surrender value of our company-owned life insurance (“COLI”) policies, net of changes in our non-qualified deferred compensation obligation supported by these policies, are subject to market fluctuations. The changes in market values had a favorable impact of $3.8 million compared to the prior year.
Previous wording
Interest expense, net, decreased $0.5 million in the quarter and $0.8 million year-to-date as compared to the prior year. This decrease was primarily due to lower average borrowings, resulting in a decrease of $0.3 million and $0.9 million, respectively, in interest expense.
Current wording
Interest expense, net, decreased $0.7 million compared to the prior year primarily due to lower average borrowings.
Previous wording
Our primary sources of short-term and long-term liquidity and capital resources are cash flows from operations and borrowings available under our credit facility. Our cash requirements consist principally of working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, franchise tenant improvement allowance and incentive distributions, and obligations related to our benefit plans. We generally use available cash flows from operations to invest in our business, service our debt obligations and repurchase shares of our common stock.
Current wording
Our primary sources of short-term and long-term liquidity and capital resources are cash flows from operations and borrowings available under our credit facility. Our cash requirements consist principally of working capital, general corporate needs, capital expenditures, income tax payments, debt service requirements, franchise tenant improvement allowance and incentive distributions, and obligations related to our benefit plans. We generally use available cash flows from operations to invest in our business and service our debt obligations.
Previous wording
As of July 6, 2025, the Company had $68.1 million of cash and restricted cash on its consolidated balance sheet and available borrowings of $96.5 million under our $150.0 million Variable Funding Notes. The Company continually assesses the optimal sources and uses of cash for our business. We review our balance sheet for any undervalued assets and pursue opportunities for capital sources, including the sale of our owned Jack in the Box properties.
Current wording
As of January 18, 2026, the Company had $99.4 million of cash and restricted cash on its condensed consolidated balance sheet and available borrowings of $95.3 million under its $150.0 million Variable Funding Notes. The Company continually assesses the optimal sources and uses of cash for our business. We review our balance sheet for any undervalued assets and pursue opportunities for capital sources, including the sale of our owned Jack in the Box properties.
Previous wording
Operating Activities. Operating cash flows increased $89.4 million compared with a year ago primarily due to a favorable change in working capital of $114.7 million, partially offset by lower net income, when adjusted for non-cash items, of $25.4 million. The favorable change in working capital is primarily a result of $50.3 million paid in 2024 for fiscal 2023 income tax payments deferred in connection with the Southern California winter storm disaster declaration, $35.0 million received in the current year in connection with the a new supply chain contract, and $25.5 million paid in 2024 in connection with the Torrez settlement.
Current wording
Operating Activities. Operating cash flows decreased $71.0 million compared with a year ago primarily due to a decrease in working capital of $59.2 million, as well as lower net income, when adjusted for non-cash items, of $11.8 million. The change in working capital included the $35.0 million received in the prior year in connection with a supply chain contract, the timing for marketing and information technology payments, as well as a state refund claim settled in the current year.
Previous wording
Investing Activities. Cash flows used in investing activities decreased by $6.1 million compared with a year ago primarily due to lower spending for assets intended for sale or leaseback of $9.7 million in the current year, higher proceeds from the sale of property of $4.2 million in the current year, higher proceeds from the sale of Del Taco restaurants to franchisees of $3.5 million in the current year, and death benefit proceeds received of $3.3 million in the current year, partially offset by acquisition of 18 Colorado restaurants for $7.2 million, lower proceeds received from assets held for sale and leaseback of $4.4 million, and higher purchases of property and equipment of $3.1 million in the current year.
Current wording
Investing Activities. Cash flows used in investing activities decreased by $17.8 million compared with a year ago primarily due to an increase in proceeds from the sale of real estate of $10.9 million, higher purchases of property and equipment of $1.9 million, and higher proceeds received from assets held for sale and leaseback of $3.6 million, in the current year.
Previous wording
Financing Activities. Cash flows used in financing activities decreased by $53.6 million compared with a year ago. The change is primarily due to a $50.0 million decrease in stock repurchases compared with a year ago and a $9.0 million decrease in dividends compared with a year ago, partially offset by a $6.0 million repayment in the current year on the Variable Funding Notes.
Current wording
Financing Activities. Cash flows used in financing activities increased by $84.1 million compared with a year ago, primarily due to a $105.0 million debt prepayment made in the current year using proceeds from the Del Taco sale. The higher debt payments were partially offset by a $8.3 million decrease in dividends, a $6.0 million repayment in the prior year on the Variable Funding Notes, and a $5.0 million decrease in stock repurchases compared with a year ago.
Previous wording
Securitized Refinancing Transaction— On February 11, 2022, the Company completed the sale of $550.0 million of its Series 2022-1 3.445% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”) and $550.0 million of its Series 2022-1 4.136% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes” and, together with the Class A-2-I Notes, the “2022 Notes”). Interest payments on the 2022 Notes are payable on a quarterly basis. The anticipated repayment dates of the 2022 Class A-2-I Notes and the Class A-2-II Notes will be February 2027 and February 2032, respectively, unless earlier prepaid to the extent permitted under the indenture that governs the 2022 Notes. The anticipated repayment dates of the existing 2019-1 Class A-2-II Notes and the Class A-2-III Notes are August 2026 and August 2029, respectively.
Current wording
Debt Prepayment— The Anticipated Repayment Dates of the 2019-1 Class A-2-II Notes and the Class A-2-III Notes are August 2026 and August 2029, respectively, and the 2022-1 Class A-2-I Notes and the 2022-1 Class A-2-II Notes are February 2027 and February 2032, respectively.
Previous wording
The Company also entered into a revolving financing facility of Series 2022-1 Variable Funding Senior Secured Notes (the “Variable Funding Notes”), which permits borrowings up to a maximum of $150.0 million, subject to certain borrowing conditions, a portion of which may be used to issue letters of credit. As of July 6, 2025, we did not have any outstanding borrowings and had available borrowing capacity of $96.5 million under our Variable Funding Notes, net of letters of credits issued of $53.5 million.
Current wording
The Company also has a revolving financing facility of Series 2022-1 Variable Funding Senior Secured Notes (the “Variable Funding Notes”), which permits borrowings up to a maximum of $150.0 million, subject to certain borrowing conditions, a portion of which may be used to issue letters of credit. As of January 18, 2026, we did not have any outstanding borrowings and had available borrowing capacity of $95.3 million under our Variable Funding Notes, net of letters of credits issued of $54.7 million.
Previous wording
The quarterly principal payment on the Class A-2 Notes may be suspended when the specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as defined in the Indenture), is less than or equal to 5.0x. Exceeding the leverage ratio of 5.0x does not violate any covenant related to the Class A-2 Notes. Subsequent to closing the issuance of the 2022 Notes, the Company has had a leverage ratio of greater than 5.0x and, accordingly, the Company resumed making the scheduled amortization payments on its 2022 Notes and Series 2019-1 Notes beginning in the second quarter of 2022.
Current wording
The quarterly principal payment on the Class A-2 Notes may be suspended when the specified leverage ratio, which is a measure of outstanding debt to earnings before interest, taxes, depreciation, and amortization, adjusted for certain items (as defined in the Indenture), is less than or equal to 5.0x. Exceeding the leverage ratio of 5.0x does not violate any covenant related to the Class A-2 Notes. Subsequent to closing the issuance of the 2022 Notes, the Company has had a leverage ratio of greater than 5.0x and, accordingly, the Company resumed making the scheduled amortization payments on its 2022 Notes and Series 2019-1 Notes.
Previous wording
Restricted cash — In accordance with the terms of the Indenture, certain cash accounts have been established with the Indenture trustee for the benefit of the note holders and are restricted in their use. As of July 6, 2025, the Company had restricted cash of $30.1 million, which primarily represented cash collections and cash reserves held by the trustee to be used for payments of interest and commitment fees required for the Class A-1 and A-2 Notes.
Current wording
Restricted cash — In accordance with the terms of the Indenture, certain cash accounts have been established with the Indenture trustee for the benefit of the note holders and are restricted in their use. As of January 18, 2026, the Company had restricted cash of $27.4 million, which primarily represented cash collections and cash reserves held by the trustee to be used for payments of interest and commitment fees required for the Class A-2 Notes.
Previous wording
Dividends — Up through July 6, 2025, the Board of Directors declared two cash dividend of $0.44 per common share totaling $16.7 million. Jack in the Box announced on April 23, 2025, that it will discontinue its dividend effective immediately and direct a majority of those funds toward leverage reduction.
Current wording
Dividends — The Company announced on April 23, 2025, that it will discontinue its dividend effective immediately and direct a majority of those funds toward leverage reduction. As such, the Company did not declare any dividends during the current quarter.
Previous wording
Repurchases of common stock — The Company repurchased 0.1 million shares of its common stock in fiscal 2025 for an aggregate cost of $5.0 million. As of July 6, 2025, there was $175.0 million remaining under share repurchase programs authorized by the Board of Directors which does not expire.
Current wording
Repurchases of common stock — The Company did not repurchase any shares of its common stock in fiscal 2026. As of January 18, 2026, there was $175.0 million remaining under share repurchase programs authorized by the Board of Directors which does not expire.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The following table presents company restaurant sales and costs as a percentage of the related sales(dollars in thousands):
Previous report — wording carried elsewhere
Same-store sales at company-operated restaurants decreased 2.2% in both the quarter and year-to-date periods compared to a year ago. The following table summarizes the change versus a year ago:
Previous report — wording carried elsewhere
The following table presents franchise revenues and costs in each period and other information we believe is useful in analyzing the change in franchise operating results (dollars in thousands):