Jack in the Box’s second quarter results were met with a negative market response, as revenue fell short of analyst expectations and management acknowledged ongoing challenges in core markets. CEO Lance Tucker cited weaker demand from Hispanic and lower-income customers, particularly in regions where the brand is heavily concentrated, as a key headwind. Additionally, he pointed to the impact of recent price increases and difficult comparisons with last year’s successful promotions, stating, “The macro environment is very difficult, and consumers remain cautious.” Despite these setbacks, management emphasized renewed efforts to restore value and enhance the guest experience as critical to regaining sales momentum.
Is now the time to buy JACK? Find out in our full research report (it’s free).
Jack in the Box (JACK) Q2 CY2025 Highlights:
- Revenue: $333 million vs analyst estimates of $340 million (9.8% year-on-year decline, 2.1% miss)
- EPS (GAAP): $1.15 vs analyst estimates of $1.15 (in line)
- Adjusted EBITDA: $61.63 million vs analyst estimates of $64.59 million (18.5% margin, 4.6% miss)
- EPS (GAAP) guidance for the full year is $4.64 at the midpoint, beating analyst estimates by 225%
- EBITDA guidance for the full year is $272.5 million at the midpoint, below analyst estimates of $284.1 million
- Operating Margin: 12.2%, up from -27.7% in the same quarter last year
- Locations: 2,168 at quarter end, down from 2,195 in the same quarter last year
- Same-Store Sales fell 6.3% year on year (-2.5% in the same quarter last year)
- Market Capitalization: $314.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Jack in the Box’s Q2 Earnings Call
- Brian John Bittner (Oppenheimer) pressed for details on how incremental advertising spend would drive sales recovery in Q4. CEO Lance Tucker explained the emphasis on value-led promotions and adjusting menu pricing.
- Arian Razai (Guggenheim) asked about operational changes from the new COO and the impact of income cohort behavior on traffic. Tucker cited renewed field focus and accountability, while CMO Ryan Ostrom noted the outsized effect of Hispanic guest pullback.
- Jon Michael Tower (Citi) questioned franchisee alignment around everyday value versus limited-time offers. Tucker outlined efforts to restructure menu tiers and balance franchisee profitability with customer value.
- James Jon Sanderson (Northcoast Research) inquired about performance in new and legacy markets and the share of traffic from key demographics. Tucker shared that new Chicago stores outperformed established markets and highlighted the brand’s high Hispanic guest concentration.
- Alexander Russell Slagle (Jefferies) sought clarity on franchisee interest in the new reimaging program and the cadence of store closures. Tucker described strong franchisee demand and noted closures will be spread over several years, with more detail expected in the next update.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) whether value-focused menu changes and promotions translate into sustained traffic gains, (2) the pace and impact of restaurant modernization and technology rollouts, and (3) progress on the JACK on Track closure program and the outcome of the Del Taco strategic review. The effectiveness of incremental marketing investments and operational improvements will also be key markers for tracking the company’s turnaround.
Jack in the Box currently trades at $16.71, down from $18.93 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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