Sales Performance - Company-operated restaurant sales decreased by $1.8 million, or 1.4%, compared to the prior year, with same-store sales down 4.7%[97] - Franchise rental revenues decreased by $8.4 million, or 7.9%, primarily due to lower sales and a decrease in the number of franchise restaurants[102] - Total franchise revenues declined to $217.6 million, down from $237.3 million, representing an 8.3% decrease[100] - Systemwide sales for the sixteen weeks ended January 18, 2026, were $1.366 billion, compared to $1.268 billion for the same period in 2025, reflecting a 7.7% increase[94] Cost and Expense Management - Food and packaging costs as a percentage of company restaurant sales increased to 29.7%, up from 25.9% in the prior year, driven by commodity inflation of 7.1%[95][98] - Payroll and employee benefit costs increased to 35.3% of company restaurant sales, up from 33.3% in the prior year, primarily due to a change in the mix of restaurants[99] - Other operating expenses increased by $5.5 million, primarily due to restructuring and integration costs[110] - Depreciation and amortization increased by $1.2 million due to new technology assets and new company-operated restaurants[106] Financial Position - As of January 18, 2026, the company had $99.4 million in cash and restricted cash, with available borrowings of $95.3 million under its $150.0 million Variable Funding Notes[116] - Operating cash flows decreased by $71.0 million compared to the previous year, primarily due to a decrease in working capital of $59.2 million[118] - Total capital expenditures for the first quarter of 2026 were $23.218 million, compared to $21.300 million in the prior year[119] - The company prepaid $105.0 million of its existing Series 2019-1 Class A-2-II Notes on January 9, 2026, as part of its debt reduction strategy[122] - The company did not declare any dividends during the current quarter, redirecting funds toward leverage reduction[127] - As of January 18, 2026, there was $175.0 million remaining under share repurchase programs authorized by the Board of Directors[128] - The company expects cash flows from operations and its financing facility to be sufficient to meet capital expenditure, working capital, and debt service requirements for at least the next twelve months[117] Tax and Income - For the first quarter of fiscal year 2026, the company recorded an income tax expense of $6.9 million, resulting in an effective tax rate of 32.4%[112] - Changes in tax laws and interpretations may adversely affect the company's income tax expenses and payments[133] Risks and Challenges - The company faces risks related to maintaining effective internal controls, which could impact financial results and shareholder confidence[133] - The company is exposed to risks from disagreements with key stakeholders, including franchisees[133] - Activist stockholder actions could lead to significant costs and divert management's focus[133] - Cybersecurity breaches and data security incidents pose risks to the company's operations[133] - Increasing dependence on digital commerce platforms may unpredictably affect consumer behavior and financial results[133] - The company has a significant amount of outstanding debt, which could negatively impact financial condition and operational results[133] - Securitized debt instruments have restrictive terms, and non-compliance could result in default, harming brand value[133] - The company has not reported any material changes in market risks as per the latest annual report[134] Operational Changes - The average number of franchise restaurants decreased by 2.9% to 1,974 from 2,032 in the prior year[100] - The company closed 14 restaurants during the period, resulting in a total of 2,128 restaurants as of January 18, 2026[94] - Losses from discontinued operations amounted to $16.8 million for the first quarter of 2026, compared to earnings of $2.7 million in the prior year quarter[114] - Interest expense, net decreased by $0.7 million to $23.682 million compared to the prior year, primarily due to lower average borrowings[111]

Financial Performance - Jack in the Box reported a 6.7% decrease in same-store sales for Q1 2026, with franchise same-store sales down 7.0% and company-owned same-store sales down 4.7%[4]. - Total revenues decreased by 5.8% to $349.5 million, compared to $371.1 million in the prior year quarter[8]. - Net earnings from continuing operations were $14.4 million, down from $31.0 million in the prior year quarter[11]. - Diluted earnings per share from continuing operations were $0.75, compared to $1.61 in the prior year quarter[13]. - Adjusted EBITDA for Q1 2026 was $68.2 million, down from $88.8 million in the prior year quarter[12]. - Restaurant-Level Margin was $21.3 million, or 16.1%, down from $31.0 million, or 23.2%, a year ago[5]. - Franchise-Level Margin was $84.1 million, or 38.6%, a decrease from $97.1 million, or 40.9%, a year ago[5]. - Earnings from continuing operations for the 16 weeks ended January 18, 2026, were $14,389,000, down from $30,996,000 in the prior year, indicating a decrease of approximately 53.7%[29]. - The company reported a net loss of $2,458,000 for the 16 weeks ended January 18, 2026, contrasting with net earnings of $33,686,000 in the same period in 2025[29]. - Non-GAAP Adjusted Net Income for the same period was $19,241,000, down from $35,727,000 year-over-year, reflecting a decrease of 46.1%[41]. - Diluted earnings per share from continuing operations (GAAP) were $0.75, compared to $1.61 in the prior year, a decline of 53.4%[41]. - Adjusted EBITDA for the 16 weeks ended January 18, 2026, was $68,177,000, down from $88,837,000 in the same period of 2025, a decrease of 23.3%[50]. - The company reported a net loss of $80.719 million for the fiscal year, with a significant loss of $142.228 million in April due to discontinued operations[55]. Revenue and Sales - Company restaurant sales for the 16 weeks ended January 18, 2026, were $131,907,000, a decrease from $133,755,000 in the same period in 2025[34]. - Systemwide sales decreased to $1,268,549,000 in January 2026 from $1,366,102,000 in January 2025, representing a decline of about 7.1%[34]. - Company restaurant sales for the fiscal year totaled $416.715 million, with quarterly sales of $133.755 million in January, $95.095 million in April, $94.112 million in July, and $93.753 million in September[55]. - Franchise rental revenues reached $332.735 million for the fiscal year, with quarterly revenues of $105.781 million in January, $77.935 million in April, $76.538 million in July, and $72.481 million in September[55]. - Total revenues for the fiscal year amounted to $1.154 billion, with quarterly revenues of $371.064 million in January, $265.731 million in April, $262.401 million in July, and $254.770 million in September[55]. - Total franchise revenues for the period were $217,610,000, compared to $237,309,000 in the prior year, a decline of 8.3%[52]. Costs and Expenses - Cash flows provided by operating activities were $30,546,000 for the 16 weeks ended January 18, 2026, compared to $101,583,000 in the same period in 2025, a decline of about 70%[29]. - Food and packaging costs as a percentage of company restaurant sales rose to 29.7% in January 2026 from 25.9% in January 2025[31]. - The company incurred total operating costs and expenses of $954.776 million for the fiscal year, with quarterly costs of $300.584 million in January, $217.448 million in April, $214.036 million in July, and $222.708 million in September[55]. - Interest expense for the fiscal year totaled $79.094 million, with quarterly expenses of $24.380 million in January, $18.351 million in April, $18.135 million in July, and $18.228 million in September[58]. Assets and Liabilities - Total current assets increased to $232,218,000 in January 2026 from $220,372,000 in September 2025, reflecting a growth of approximately 3.8%[27]. - Long-term debt, net of current maturities, decreased to $1,564,253,000 in January 2026 from $1,674,235,000 in September 2025, a reduction of approximately 6.6%[27]. - Total stockholders' deficit improved slightly to $(936,038,000) in January 2026 from $(938,271,000) in September 2025[27]. Operational Changes - The company closed 14 restaurants and opened 6 in the first quarter, resulting in a net decrease of 8 restaurants[6]. - The company expects a restaurant count of 2,050 to 2,100 by the end of the fiscal year[19]. - The company has discontinued its dividend and share repurchase program[21].

Core Viewpoint - Biglari Capital, the largest shareholder of Jack in the Box, is urging shareholders to vote against the re-election of Chairman David Goebel due to his poor performance and governance issues, supported by recommendations from proxy advisory firms Glass Lewis and Egan-Jones, while ISS supports the status quo despite acknowledging failures [1][2][3] Group 1: Proxy Advisory Firm Recommendations - Glass Lewis recommends shareholders vote AGAINST David Goebel, citing "material performance and governance concerns" and a lack of accountability from the board [1][2] - Egan-Jones also recommends voting AGAINST Goebel and other directors, emphasizing the need for urgent board refreshment to support the company's turnaround plan [1][3] - Both advisory firms highlight the board's long-standing underperformance and ineffective oversight, contrasting sharply with ISS's support for the current leadership [1][2] Group 2: Performance Metrics and Governance Issues - Under Goebel's leadership, Jack in the Box has experienced a total shareholder return (TSR) of -68.6%, significantly underperforming peers and the S&P 600 Restaurants Index [2][3] - The company has faced catastrophic value destruction, with shareholders losing approximately $1.8 billion, or 80% of the company's value, over the past five years [3] - The failed acquisition of Del Taco, which resulted in a loss of over $400 million, is cited as a significant governance failure during Goebel's tenure [2][3] Group 3: Calls for Change - Biglari Capital argues that there is no credible plan for change from Goebel, questioning what he could do differently in the next year after 17 years of poor performance [3] - The board's failure to engage with shareholders and its reactive approach to governance changes are seen as signs of entrenchment rather than effective leadership [2][3] - The company has experienced chronic leadership instability, with three CEOs and eight CFOs in the last five years, reflecting a failure in fundamental governance duties [3]

Core Viewpoint - Jack In The Box Inc. is facing significant financial challenges, with expected declines in both earnings and revenue for Q1 2026 compared to the previous year [2][3]. Financial Performance - The company is projected to report earnings per share (EPS) of $1.10 for the quarter ending December 2025, which is a 31% decrease from the previous year's EPS of $1.16 [2]. - Revenue projections for JACK are approximately $343.87 million, reflecting a 26.7% decrease compared to the same quarter last year [3]. - The previous quarter reported revenue of $326.19 million, which was slightly above analyst estimates but still indicates a challenging financial environment [3]. Financial Metrics - JACK has a negative price-to-earnings (P/E) ratio of -4.90, indicating negative earnings [4]. - The price-to-sales ratio is 0.27, suggesting the stock is valued at 27 cents for every dollar of sales [4]. - The debt-to-equity ratio is -3.33, indicating a higher level of debt compared to equity, which may pose financial challenges [4]. Market Expectations - The upcoming earnings report and management's discussion during the earnings call will be crucial for determining JACK's near-term stock price movement [5]. - Surpassing expectations could lead to a stock price increase, while failing to meet estimates might result in a decline [5].

Core Viewpoint - Jack In The Box (JACK) is expected to report a significant decline in quarterly earnings and revenues, indicating potential challenges for the company in the upcoming financial release [1]. Earnings and Revenue Estimates - Analysts forecast quarterly earnings of $1.10 per share, reflecting a year-over-year decline of 42.7% [1]. - Anticipated revenues are projected to be $343.87 million, which represents a decrease of 26.7% compared to the same quarter last year [1]. - The consensus EPS estimate has been revised downward by 0.1% in the past 30 days, indicating a reassessment of initial estimates by covering analysts [2]. Key Metrics and Franchise Performance - Franchise rental revenues are expected to reach $98.63 million, down 15.4% from the prior-year quarter [5]. - Franchise contributions for advertising and other services are estimated at $64.78 million, showing a year-over-year change of -16.4% [5]. - Total franchise revenues (including rental, royalties, and contributions) are projected to be $224.75 million, indicating a decline of 16.2% year-over-year [6]. - Franchise royalties and other revenues are expected to be $61.34 million, reflecting a year-over-year decrease of 17.1% [6]. Restaurant Counts - The estimated number of franchised restaurants at the end of the period (EOP) is 1,956, down from 2,038 in the same quarter last year [7]. - Total restaurant counts (EOP) are projected to be 2,106, compared to 2,190 a year ago [7]. - Company-operated restaurant counts (EOP) are expected to be 150, slightly down from 152 in the previous year [8]. - The estimated number of new restaurants (total) is projected at 4, down from 5 in the same quarter last year [10]. Stock Performance - Jack In The Box shares have shown a return of -9.8% over the past month, contrasting with the Zacks S&P 500 composite's -1.7% change [11]. - The company holds a Zacks Rank of 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [11].

Core Viewpoint - Biglari Capital Corp. criticizes David Goebel's 17-year tenure as chairman of Jack in the Box Inc., claiming his outdated expertise has led to significant financial losses and poor company performance [1][7]. Group 1: Company Performance and Financial Impact - Jack in the Box has lost approximately $1.8 billion, or 80% of its value, in the last five years, indicating severe financial distress under Goebel's leadership [7]. - The company has been forced to suspend dividends, close 150-200 stores, and restructure to remain solvent, which reflects the negative impact of Goebel's decisions [2]. - Jack in the Box is experiencing its lowest same-store sales and adjusted EBITDA since the COVID pandemic, highlighting ongoing operational challenges [8]. Group 2: Governance and Leadership Issues - The board is described as being heavily reliant on Goebel's outdated experience, with long-tenured directors lacking relevant restaurant expertise [2]. - There has been chronic leadership instability, with three CEOs and eight CFOs in the last five years, indicating governance issues within the company [8]. - Short interest accounts for over 30% of the float, suggesting a lack of confidence in the current board and its ability to lead the company effectively [9]. Group 3: Call to Action - Biglari Capital urges shareholders to vote against Goebel's re-election, emphasizing the need for accountability and a change in leadership to improve the company's situation [11]. - The statement asserts that Goebel's continued influence poses a risk of further damaging the brand and worsening the financial situation [9][10].

Core Insights - Jack in the Box is celebrating its 75th anniversary by reintroducing the Hot Mess Burger, a fan-favorite item that first debuted in 2013, available for a limited time starting February 16, 2026 [1] - The return of the Hot Mess Burger will be accompanied by a remake of the original advertisement, a limited-edition collectible, and an anniversary tour [1] Product Details - The Hot Mess Burger features a 100% beef jumbo patty, white cheese sauce, shredded pepper jack cheese, pickled jalapenos, and crunchy onion rings on toasted sourdough bread [1] - The burger is designed to evoke nostalgia and is part of a broader marketing strategy to engage fans [1] Marketing and Promotions - The anniversary celebration includes a remake of the original ad featuring Jack as the frontman of the 80s rock band Meat Riot, providing fans with a nostalgic experience [1] - Jack's iconic antenna balls will also return as collectibles, enhancing the brand's connection with its fanbase [1] Anniversary Tour - The Hot Mess Anniversary Tour will take place from February 13 to February 21, 2026, starting in San Diego and including stops in Austin and Los Angeles [1] - Each tour stop will feature unique experiences and the opportunity to try the Hot Mess Burger [1] Company Background - Jack in the Box Inc. operates approximately 2,135 restaurants across 21 states, making it one of the largest hamburger chains in the United States [1]

Core Viewpoint - Jack in the Box is defending its board of directors, particularly chair David Goebel, ahead of the annual shareholders meeting, emphasizing the importance of their leadership for the company's strategic plan and shareholder value [1][4]. Group 1: Shareholder Communication - The company has urged shareholders to vote for all 10 of its board nominees, including Goebel, in response to activist investor Sardar Biglari's campaign against them [2]. - Jack in the Box has sent a letter to shareholders reiterating its support for the board and Goebel, highlighting his critical expertise and the potential risks of his removal [4]. Group 2: Performance and Challenges - Proxy advisory firm Egan Jones has recommended that shareholders withhold votes from several directors, including Goebel, citing a 7.4% decline in same-store sales in the fourth quarter since the introduction of the Jack on Track plan [3]. - The company claims that Biglari's campaign is motivated by self-interest and has hindered constructive dialogue, asserting that the board is well-suited to lead the company [4]. Group 3: Management and Strategy - Jack in the Box has appointed a new CEO, CFO, and COO, and is implementing an orderly board refreshment process to strengthen its leadership [4]. - The company believes it has the right board and management team in place to build a strong foundation for future growth, with Goebel being recognized as a highly qualified executive in the quick-service and casual-dining sector [4].

Core Viewpoint - Biglari Capital Corp. is urging all shareholders of Jack in the Box Inc. to vote against Chairman David Goebel at the upcoming annual meeting [1] Group 1: Shareholder Engagement - Biglari Capital has sent a letter to Jack in the Box shareholders emphasizing the importance of their votes regardless of the number of shares owned [1] - Shareholders are encouraged to sign, date, and return the GOLD proxy card to express their stance [1] Group 2: Proxy Voting Assistance - Biglari Capital provides contact information for Saratoga Proxy Consulting LLC for shareholders needing assistance with the voting process or proxy materials [1]

Core Insights - Del Taco is reintroducing its seasonal Jumbo Shrimp Tacos and Burrito, available for a limited time at a price of two tacos for $6, featuring crispy Jumbo Shrimp, house-made pico de gallo, crunchy cabbage, and signature secret sauce wrapped in a warm flour tortilla [1][3] - The Beer Battered Fish Taco, made with wild-caught Alaska Pollock, is offered at three tacos for $7, available at any time, promoting seafood options beyond just Fridays [2][3] - The seafood menu will be available systemwide from February 3 through April 14, while supplies last, emphasizing the value and quality of ingredients used in the meals [3][4] Company Overview - Del Taco has been recognized as the Best Fast Food Restaurant in USA Today's 2025 10 Best Reader's Choice Awards, highlighting its unique variety of Mexican and American favorites prepared fresh in each restaurant [4] - Founded in 1964, Del Taco serves over three million guests weekly across nearly 600 locations in 19 states, focusing on providing real food at a real value [5]