JACK IN THE BOX INC
For the period ended Apr 12, 2026. Filed May 13, 2026.
View on SEC.govAbout this filing
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.
Apr 12, 2026 · Filed May 13, 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 2026-01-18; filed 2026-02-18.
0000807882-26-000042
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-12; filed 2026-05-13.
0000807882-26-000067
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 122 previous paragraphs and 124 current paragraphs.
86 unchanged; 32 reworded; 6 added; 3 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 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 (6)
Current report
Franchise rental revenues decreased $5.8 million, or 7.5% in the quarter and $14.2 million, or 7.7% year-to-date, compared to the prior year primarily due to lower percentage rent of $2.4 million and $8.4 million, respectively, driven by lower franchise restaurant sales, and a decrease in rent revenue of $1.7 million and $3.9 million, respectively, due to fewer franchise restaurants. Lower lease termination fees of $2.9 million in the quarter and year-to-date also contributed to the decrease.
Current report
Selling, General and Administrative Expenses
Current report
Litigation matters decreased $1.6 million for both the quarter and on a year-to-date basis as compared to the prior year, primarily due to the timing of litigation reversal relating to the J&D Restaurant Group. Refer to Note 13, Commitments and Contingencies, in the condensed consolidated financial statements for additional information related to the legal matters.
Current report
Other operating expenses, net increased $1.2 million on a quarter-to-date basis and $6.7 million on a year-to-date basis, as compared to the prior year. For the quarter, the increase was primarily due to $2.7 million for proxy contest fees and other consulting fees for strategic initiatives, partially offset by $1.9 million of higher gains in the current year related to the sale of real estate.
Current report
The Company uses corporate owned life insurance (“COLI”) policies to fund our Supplemental Executive Retirement Plan (“SERP”) and Executive Deferred Compensation Plan (“EDCP”) benefit obligations. The funding of these plans was well in excess of the related obligations at April 12, 2026. As such, following the second quarter of 2026, the Company is in the process of withdrawing excess funding of approximately $71.0 million, from its COLI policies, which is expected to be used along with cash on hand to prepay approximately $99.0 million of the 2019-1 Class A-2-II Notes in the third quarter of 2026.
Current report
The $5.3 million change in purchases of property and equipment is primarily a result of lower restaurant information technology costs, partially offset by higher restaurant facility expenditures relating to the beverage dispenser replacement program. The following table summarizes the capital expenditures in each period (in thousands):
Removed paragraphs (3)
Previous 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.
Previous report
Information technology costs increased $1.0 million compared to the prior year, primarily due to increased spend relating to our digital platform.
Previous report
Capital Expenditures — The composition of capital expenditures in each period follows (in thousands):
Reworded paragraphs (32)
Previous 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.
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 12 weeks (“quarter”) and 28 weeks (“year-to-date”) ended April 12, 2026 and April 13, 2025, respectively, unless otherwise indicated.
Previous 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.
Current wording
Founded in 1951, Jack in the Box Inc. (the “Company”) operates and franchises Jack in the Box® quick-service restaurants. As of April 12, 2026, we operated and franchised 2,128 restaurants, primarily in the western and southern United States, including restaurants in Guam and in Mexico.
Previous wording
We derive revenue from retail sales at company-operated restaurants and rental revenue, royalties (based upon a percent of sales), franchise fees and contributions for advertising and other services from franchisees.
Current wording
We derive revenue from retail sales at company-operated restaurants and rental revenue, royalties (based upon a percentage of sales), franchise fees and contributions for advertising and other services from franchisees.
Previous 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):
Current wording
Company restaurant sales decreased $0.4 million, or 0.4% in the quarter and $2.2 million, or 1.0% 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):
Previous 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:
Current wording
Same-store sales at company-operated restaurants decreased 2.8% in the quarter and 3.9% year-to-date compared to a year ago. The following table summarizes the change versus a year ago:
Previous wording
(1)Includes price increases of approximately 3.0% in the quarter.
Current wording
(1)Includes price increases of approximately 2.6% in the quarter and 2.8% year-to-date.
Previous 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.
Current wording
Food and packaging costs, as a percentage of company restaurant sales, increased 1.1% in the quarter and 2.7% year-to-date compared to the prior year, due mainly to commodity inflation, and unfavorable menu item mix, offset by menu price increases. The year-to-date increase was also due to a non-recurring benefit from a new supply chain contract in the prior year. Commodity inflation was 5.0% in the quarter and 6.3% year-to-date, with the greatest impacts in beef, tacos, produce and beverages.
Previous 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.
Current wording
Payroll and employee benefit costs, as a percentage of company restaurant sales, increased 1.8% in the quarter and 1.9% year-to-date compared to the prior year, primarily due to a change in the mix of restaurants. Labor inflation was approximately 1.5% in the quarter and 0.7% year-to-date for the current year.
Previous 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.
Current wording
Occupancy and other costs, as a percentage of company restaurant sales, increased 0.4% in the quarter and 0.8% year-to-date compared to the prior year. For the quarter and year-to-date periods, these increases were primarily due to sales deleverage and higher rent.
Previous 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.
Current wording
Franchise royalties and other decreased $2.7 million, or 5.9% in the quarter and $7.5 million, or 6.8% year-to-date compared to the prior year primarily due to lower royalty income of $0.7 million and $4.2 million, respectively, driven by lower sales, and a decrease in royalties of $0.8 million and $1.8 million, respectively, due to a decrease in the number of franchise restaurants.
Previous 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.
Current wording
Franchise contributions for advertising and other services revenues decreased $2.5 million, or 5.4% in the quarter and $9.1 million, or 7.9% year-to-date compared to the prior year mainly due to lower sales and a decrease in the number of restaurants, driving marketing contributions lower by $1.0 million and $0.8 million, respectively, for the quarter, and $4.7 million and $2.0 million, respectively, year-to-date.
Previous wording
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 wording
Franchise occupancy expenses, primarily rent, decreased $1.1 million, or 2.2% in the quarter and $2.7 million, or 2.3% year-to-date compared to the prior year. The decrease was primarily driven by lower operating lease costs of $1.3 million in the quarter and $3.1 million year-to-date, due to the decrease in the number of franchise restaurants.
Previous wording
Franchise support and other costs increased $0.5 million, or 13.9% compared to the prior year.
Current wording
Franchise support and other costs increased $0.2 million, or 7.0% in the quarter, and $0.7 million, or 10.5% year-to-date compared to the prior year. The quarter increase was primarily to increases in bad debt expense of $0.7 million. The year-to-date increase is due to increases in bad debt expense of $1.2 million, partially offset by decreases in digital fees of $0.8 million.
Previous 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.
Current wording
Franchise advertising and other service expenses decreased $2.4 million, or 5.0% in the quarter and $7.9 million, or 6.8% year-to-date 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 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.
Current wording
Depreciation and amortization for the quarter ended April 12, 2026 increased $2.9 million in the quarter and $4.1 million year-to-date compared to the prior year period primarily due to increases for new technology assets placed in service and new company-operated restaurants.
Previous wording
The following table presents the amounts for SG&A expenses in each period (in thousands):
Current wording
The following table presents the amounts for selling, general and administrative (“SG&A”) expenses in each period (in thousands):
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 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.
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 $0.1 million in the quarter and $0.8 million year-to-date 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 $3.8 million 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 $1.6 million in the quarter and $5.4 million on a year-to-date basis, compared to the prior year.
Previous wording
Share-based compensation increased by $0.5 million compared to the prior year, primarily due to prior year forfeitures.
Current wording
Share-based compensation increased by $2.4 million in the quarter and $2.9 million year-to-date compared to the prior year, primarily due to lower forfeitures in the current year.
Previous wording
Insurance decreased $0.7 million compared to the prior year primarily due to group insurance reimbursements received in the current quarter.
Current wording
Insurance increased $0.1 million in the quarter and decreased $0.6 million on a year-to-date basis, compared to the prior year. The year-to-date decrease was primarily due to group insurance reimbursements received in the current year.
Previous wording
We had income from the transition services agreement (“TSA”) following the Del Taco sale of $0.9 million in the current quarter.
Current wording
Included in the SG&A amounts above are income from the transition services agreement (“TSA”) following the Del Taco sale of $0.6 million in the quarter and $1.5 million on a year-to-date basis in 2026. The TSA period has since concluded as of the end of the second quarter.
Previous wording
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 wording
For the year-to-date period, the increase was primarily due to $12.6 million for proxy contest fees, professional fees for tax refund settlement, restructuring costs, and other consulting fees for strategic initiatives, partially offset by $7.8 million of higher gains in the current year related to the sale of real estate.
Previous wording
Interest expense, net, decreased $0.7 million compared to the prior year primarily due to lower average borrowings.
Current wording
Interest expense, net, decreased $1.5 million in the quarter and $2.2 million year-to-date compared to the prior year primarily due to lower average borrowings.
Previous wording
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 wording
For the second quarter of and year-to-date fiscal year 2026, the Company recorded income tax expense of $4.8 million and $11.7 million, respectively, resulting in effective tax rates of 27.7% and 30.2%, respectively. The effective tax rate for such periods 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.
Previous wording
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 wording
For the second quarter of and year-to-date fiscal year 2025, the Company recorded income tax expense of $7.9 million and $21.2 million, respectively, resulting in effective tax rates of 27.6% and 29.1%, respectively. The effective tax rate for such periods differed from the U.S. statutory tax rate primarily due to the nondeductible component of share-based compensation and nondeductible losses from the market performance of insurance products used to fund certain non-qualified retirement plans.
Previous wording
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 wording
The results of operations from the sale of our Del Taco business has been reported as discontinued operations for all periods presented. For the second quarter of and year-to-date fiscal year 2026, there were losses from discontinued operations, net of taxes of $2.3 million and $19.1 million, respectively, compared with $162.9 million and $160.2 million, respectively, for the second quarter of and year-to-date fiscal year 2025. Refer to Note 4, Discontinued Operations, in the notes to condensed consolidated financial statements, for additional information regarding discontinued operations.
Previous 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.
Current wording
As of April 12, 2026, the Company had $69.4 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 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.
Current wording
Operating Activities. Operating cash flows decreased $44.0 million compared with a year ago primarily due to a decrease in working capital of $29.8 million, as well as lower net income, when adjusted for non-cash items, of $14.1 million. The change in working capital included the $35.0 million received in the prior year in connection with a supply chain contract, an increase of $12.8 million in franchise incentive disbursements in the current year, partially offset by a decrease of $23.0 million in income and franchise tax payments in the current year.
Previous 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.
Current wording
Investing Activities. Cash flows used in investing activities decreased by $13.8 million compared with a year ago, primarily due to purchases of assets intended for sale or leaseback of $5.7 million in the prior year, higher proceeds received from assets held for sale and leaseback of $3.6 million, and lower purchases of property and equipment of $5.3 million.
Previous 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.
Current wording
Financing Activities. Cash flows used in financing activities increased by $75.5 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 decrease in dividend payments of $16.6 million, rolling over a $6.0 million repayment in the prior year on the Variable Funding Notes, and a $5.0 million decrease in stock repurchases.
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 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.
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 April 12, 2026, the Company had restricted cash of $26.3 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 — 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.
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 year.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Selling, General and Administrative (“SG&A”) Expenses