jack-20260118

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 18, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from ________to________.

Commission File Number: 1-9390

____________________________________________________

JACK IN THE BOX INC.

(Exact name of registrant as specified in its charter)

_______________________________________________________________________________________

Delaware

95-2698708

(State of Incorporation)

(I.R.S. Employer Identification No.)

9357 Spectrum Center Blvd.

San Diego, California 92123

(Address of principal executive offices)

Registrant’s telephone number, including area code (858) 571-2121

_______________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	JACK	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	þ	Smaller reporting company	☐
Accelerated filer	☐	Emerging growth company	☐
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No þ

As of the close of business February 11, 2026, 19,036,016 shares of the registrant’s common stock were outstanding.

JACK IN THE BOX INC. AND SUBSIDIARIES

INDEX


		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (Unaudited):
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Earnings (Loss)	3
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Cash Flows	5
	Condensed Consolidated Statements of Stockholders’ Deficit	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults of Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	31
	Signature	32

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(Unaudited)


	January 18, 2026		September 28, 2025
ASSETS
Current assets:
Cash	$	71,973	$	45,766
Restricted cash	27,398		30,282
Accounts and other receivables, net	92,437		73,744
Inventories	2,771		2,346
Prepaid expenses	12,648		13,604
Current assets held for sale	16,430		46,042
Other current assets	8,561		8,588
Total current assets	232,218		220,372
Property and equipment:
Property and equipment, at cost	1,145,008		1,150,490
Less accumulated depreciation and amortization	(808,559)		(806,873)
Property and equipment, net	336,449		343,617
Other assets:
Operating lease right-of-use assets	1,000,680		1,005,024


Goodwill	136,026		136,026
Deferred tax assets	62,020		61,501
Non-current assets held for sale	—		574,967
Other assets, net	254,234		251,914
Total other assets	1,452,960		2,029,432
	$	2,021,627	$	2,593,421
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Current maturities of long-term debt	$	28,270	$	29,458
Current operating lease liabilities	136,668		138,199
Accounts payable	45,278		56,349
Accrued liabilities	141,810		142,478
Current liabilities held for sale	—		64,139
Total current liabilities	352,026		430,623
Long-term liabilities:
Long-term debt, net of current maturities	1,564,253		1,674,235
Long-term operating lease liabilities, net of current portion	900,779		907,910
Non-current liabilities held for sale	—		377,445

Other long-term liabilities	140,607		141,479
Total long-term liabilities	2,605,639		3,101,069
Stockholders’ deficit:
Preferred stock $0.01 par value, 15,000,000 shares authorized, none issued	—		—
Common stock $0.01 par value, 175,000,000 shares authorized, 83,147,600 and 83,012,784 issued and outstanding, respectively	831		830
Capital in excess of par value	546,336		542,177
Retained earnings	1,766,747		1,769,205
Accumulated other comprehensive loss	(49,327)		(49,858)
Treasury stock, at cost, 64,120,270 and 64,120,270 shares, respectively	(3,200,625)		(3,200,625)
Total stockholders’ deficit	(936,038)		(938,271)
	$	2,021,627	$	2,593,421

See accompanying notes to condensed consolidated financial statements.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(In thousands, except per share data)

(Unaudited)


	Sixteen Weeks Ended
	January 18, 2026		January 19, 2025
Revenues:
Company restaurant sales	$	131,907	$	133,755
Franchise rental revenues	97,387		105,781
Franchise royalties and other	58,876		63,615
Franchise contributions for advertising and other services	61,347		67,913
	349,517		371,064
Operating costs and expenses, net:
Food and packaging	39,232		34,690
Payroll and employee benefits	46,577		44,528
Occupancy and other	24,801		23,540
Franchise occupancy expenses	66,301		67,916
Franchise support and other costs	3,760		3,301
Franchise advertising and other services expenses	63,472		68,992
Selling, general and administrative expenses	37,018		41,156
Depreciation and amortization	13,609		12,457
Pre-opening costs	59		1,457

Other operating expenses, net	8,050		2,547

	302,879		300,584
Earnings from operations	46,638		70,480
Other pension and post-retirement expenses, net	1,684		1,789
Interest expense, net	23,682		24,380
Earnings before income taxes	21,272		44,311
Income tax expense	6,883		13,315
Earnings from continuing operations	14,389		30,996
(Losses) earnings from discontinued operations, net of taxes	(16,847)		2,690
Net (loss) earnings	$	(2,458)	$	33,686

Net earnings (loss) per share - basic:
Earnings from continuing operations	$	0.75	$	1.63
(Losses) earnings from discontinued operations	$	(0.88)	$	0.14
Net (loss) earnings per share	$	(0.13)	$	1.77
Net earnings (loss) per share - diluted:
Earnings from continuing operations	$	0.75	$	1.61
(Losses) earnings from discontinued operations	$	(0.88)	$	0.14
Net (loss) earnings per share	$	(0.13)	$	1.75

Cash dividends declared per common share	$	—	$	0.44

See accompanying notes to condensed consolidated financial statements.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Sixteen Weeks Ended
	January 18, 2026		January 19, 2025
Net (loss) earnings	$	(2,458)	$	33,686
Other comprehensive income:

Actuarial gains and prior service costs reclassified to earnings	718		808

Tax effect	(187)		(213)
Other comprehensive income, net of taxes	531		595

Comprehensive (loss) income	$	(1,927)	$	34,281

See accompanying notes to condensed consolidated financial statements.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Sixteen Weeks Ended
	January 18, 2026		January 19, 2025
Cash flows from operating activities:
Net (loss) earnings	$	(2,458)	$	33,686
(Losses) earnings from discontinued operations	(16,847)		2,690
Earnings from continuing operations	14,389		30,996
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	13,609		12,457
Amortization of franchise tenant improvement allowances and incentives	1,798		1,606
Deferred finance cost amortization	1,359		1,473
Tax deficiency from share-based compensation arrangements	1,399		1,111
Deferred income taxes	9,271		(4,526)
Share-based compensation expense	4,159		3,689
Pension and post-retirement expense	1,684		1,789
Gains on cash surrender value of company-owned life insurance	(4,044)		(189)


(Gains) losses on the disposition of property and equipment, net	(6,271)		417
Impairment charges	267		610
Changes in assets and liabilities:
Accounts and other receivables	2,177		13,923
Inventories	(424)		(94)
Prepaid expenses and other current assets	5,266		(1,629)
Operating lease right-of-use assets and lease liabilities	(4,664)		(5,705)
Accounts payable	(5,617)		8,036
Accrued liabilities	2,656		7,873
Pension and post-retirement contributions	(2,090)		(2,218)
Franchise tenant improvement allowance and incentive disbursements	(1,844)		(1,816)
Other	(2,534)		33,780
Cash flows provided by operating activities	30,546		101,583
Cash flows from investing activities:
Purchases of property and equipment	(23,218)		(21,300)
Purchases of assets intended for sale or leaseback	—		(5,724)
Proceeds from the sale of property and equipment	10,948		—
Proceeds from the sale and leaseback of assets	3,593		—


Other	2,800		3,303
Cash flows used in investing activities	(5,877)		(23,721)
Cash flows from financing activities:

Repayments of borrowings on revolving credit facilities	—		(6,000)

Principal repayments on debt	(112,313)		(7,456)

Dividends paid on common stock	—		(8,308)
Proceeds from issuance of common stock	1		1
Repurchases of common stock	—		(4,999)
Payroll tax payments for equity award issuances	(873)		(2,336)
Cash flows used in financing activities	(113,185)		(29,098)
Cash flows (used in) provided by continuing operations	(88,516)		48,764
Net cash (used in) provided by operating activities of discontinued operations	(11,902)		4,073
Net cash provided by (used in) investing activities of discontinued operations	118,014		(2,363)
Net cash used in financing activities of discontinued operations	(38)		(8)
Net cash provided by discontinued operations	106,074		1,702
Cash and restricted cash at beginning of period, including discontinued operations cash	81,813		54,167
Cash and restricted cash at end of period, including discontinued operations cash	$	99,371	$	104,633

See accompanying notes to condensed consolidated financial statements.

JACK IN THE BOX INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT

(In thousands)

(Unaudited)


	Number of Shares	Amount		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balance at September 28, 2025	83,013	$	830	$	542,177	$	1,769,205	$	(49,858)	$	(3,200,625)	$	(938,271)
Shares issued under stock plans, including tax benefit	135	1		—		—		—		—		1
Share-based compensation	—	—		4,159		—		—		—		4,159


Net loss	—	—		—		(2,458)		—		—		(2,458)
Other comprehensive income	—	—		—		—		531		—		531
Balance at January 18, 2026	83,148	$	831	$	546,336	$	1,766,747	$	(49,327)	$	(3,200,625)	$	(936,038)


	Number of Shares	Amount		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Balance at September 29, 2024	82,826	$	828	$	533,818	$	1,866,660	$	(57,475)	$	(3,195,629)	$	(851,798)
Shares issued under stock plans, including tax benefit	145	1		—		—		—		—		1
Share-based compensation	—	—		3,689		—		—		—		3,689
Dividends declared	—	—		61		(8,369)		—		—		(8,308)
Purchases of treasury stock	—	—		—		—		—		(4,996)		(4,996)
Net earnings	—	—		—		33,686		—		—		33,686
Other comprehensive income	—	—		—		—		595		—		595
Balance at January 19, 2025	82,971	$	829	$	537,568	$	1,891,977	$	(56,880)	$	(3,200,625)	$	(827,131)

See accompanying notes to condensed consolidated financial statements.

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.BASIS OF PRESENTATION

Nature of operations — Jack in the Box Inc. (the “Company”), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box® restaurant brand.

As of January 18, 2026, there were 149 company-operated and 1,979 franchise-operated Jack in the Box restaurants.

References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of “we,” “us” and “our.”

Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”).

These financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 28, 2025 (“2025 Form 10-K”). The accounting policies used in preparing these condensed consolidated financial statements are the same as those described in our 2025 Form 10-K.

On October 15, 2025, the Company entered into a definitive agreement to sell Del Taco Holdings Inc., a Delaware corporation (“Del Taco”), which owns and operates the Company’s Del Taco restaurant operations, to Yadav Enterprises, Inc., a California corporation (“Buyer”) and Anil Yadav (“Buyer Guarantor”), which was completed on December 22, 2025. For all periods presented in our condensed consolidated statements of earnings (loss), all sales, costs, expenses and income taxes attributable to Del Taco, have been aggregated under the caption “earnings (losses) from discontinued operations, net of income taxes.” Cash flows used in or provided by Del Taco operations have been aggregated in the condensed consolidated statement of cash flows as part of discontinued operations. Prior year results have been recast to conform with the current presentation. Refer to Note 4, Discontinued Operations, for additional information.

In our opinion, all adjustments considered necessary for a fair presentation of financial condition and results of operations for these interim periods have been included. Operating results for one interim period are not necessarily indicative of the results for any other interim period or for the full year.

Reclassifications and adjustments — Certain amounts in the prior periods’ condensed consolidated financial statements have been reclassified due to the sale of Del Taco. See Note 4, Discontinued Operations, for further information regarding this sale and the resulting prior year reclassifications.

Fiscal year — The Company’s fiscal year is 52 or 53 weeks ending the Sunday closest to September 30. Both fiscal years 2026 and 2025 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 ended January 18, 2026 and January 19, 2025, respectively, unless otherwise indicated.

Use of estimates — In preparing the condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make certain assumptions and estimates that affect reported amounts of assets, liabilities, revenues, expenses and the disclosure of contingencies. In making these assumptions and estimates, management may from time to time seek advice and consider information provided by actuaries and other experts in a particular area. Actual amounts could differ materially from these estimates.

Advertising costs — The Company administers a marketing fund that includes contractual contributions. In 2026 and 2025, marketing fund contributions from Jack in the Box franchise and company-operated restaurants were approximately 5.0% of sales.

Total contributions made by the Company and other marketing activities are included in “Selling, general and administrative expenses” in the accompanying condensed consolidated statements of earnings (loss). For the year-to-date periods in 2026 and 2025, advertising costs were $10.3 million and $10.5 million, respectively.

Allowance for credit losses — The Company closely monitors the financial condition of our franchisees and estimates the allowance for credit losses based on the lifetime expected loss on receivables. These estimates are based on historical collection experience with our franchisees as well as other factors, including current market conditions and events. Credit quality is monitored through the timing of payments compared to predefined aging criteria and known facts regarding the financial condition of the franchisee or customer. Account balances are charged off against the allowance after recovery efforts have ceased. The Company’s allowance for doubtful accounts has not historically been material.

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the activity in the allowance for doubtful accounts (in thousands):


	Sixteen Weeks Ended
	January 18, 2026		January 19, 2025
Balance as of beginning of period	$	(4,466)	$	(4,210)
(Provision) reversal for expected credit losses	(409)		124

Balance as of end of period	$	(4,875)	$	(4,086)

Recent accounting pronouncements — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis with the option to apply the standard retrospectively. The Company will adopt this pronouncement on a prospective basis in its Form 10-K for fiscal year ended September 27, 2026, and does not expect this pronouncement to have a significant impact.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Additionally, companies will need to disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 should be applied prospectively to financial statements issued for reporting periods beginning after the effective date, but entities may elect to apply the ASU retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

2.REVENUE

Nature of products and services — The Company derives revenue from retail sales at Jack in the Box company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants.

Our franchise arrangements generally provide for an initial franchise fee per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees, as well as sourcing fees.

Disaggregation of revenue — The following table disaggregates revenue by primary source (in thousands):


	Sixteen Weeks Ended
	January 18, 2026		January 19, 2025
Company restaurant sales	$	131,907	$	133,755
Franchise rental revenues	97,387		105,781
Franchise royalties	57,153		61,825
Marketing fees	56,610		61,461
Technology and sourcing fees	4,737		6,452
Franchise fees and other services	1,723		1,790
Total revenue	$	349,517	$	371,064

Contract liabilities — Contract liabilities consist of deferred revenue resulting from initial franchise and development fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. The Company classifies these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets.

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

A summary of significant changes in contract liabilities is presented below (in thousands):


	Sixteen Weeks Ended
	January 18, 2026		January 19, 2025
Deferred franchise and development fees at beginning of period	$	35,807	$	39,101
Revenue recognized	(1,405)		(1,522)
Additions	967		462
Deferred franchise and development fees at end of period	$	35,369	$	38,041

As of January 18, 2026, approximately $4.0 million of development fees related to unopened restaurants are included in deferred revenue. Timing of revenue recognition for development fees related to unopened restaurants is dependent upon the timing of restaurant openings and are recognized over the franchise term at the date of opening.

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 18, 2026 (in thousands):


Remainder of 2026	$	3,024
2027	4,111
2028	3,557
2029	2,986
2030	2,529
Thereafter	15,117
	$	31,324

The Company has applied the optional exemption, as provided for under ASC Topic 606, Revenue from Contracts with Customers, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

3.ASSETS HELD FOR SALE

Assets held for sale — Assets classified as held for sale on our condensed consolidated balance sheets as of January 18, 2026 and September 28, 2025 have carrying amounts of $16.4 million and $621.0 million, respectively. In the current year, these amounts relate to operating restaurant properties which we intend to sell to franchisees and/or sell and leaseback with a third party, and closed restaurant properties which we are marketing for sale. Of the balance as of September 28, 2025, $602.7 million relates to Del Taco which is presented as held for sale as of September 28, 2025. Refer to Note 4, Discontinued Operations, for additional information on assets and liabilities held for sale.

4.DISCONTINUED OPERATIONS

Del Taco - On October 15, 2025, the Company entered into a Stock Purchase Agreement (the “Purchase Agreement”) with the Buyer and Buyer Guarantor to sell to Buyer all of the issued and outstanding equity interests of 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 Company is also obligated to indemnify the Buyer up to $10.0 million for certain claims within a one-year period. The transaction closed on December 22, 2025 (the “Del Taco Sale”).

As the Del Taco Sale represents a strategic shift that will have a major effect on our operations and financial results, the Del Taco results are classified as discontinued operations in our condensed consolidated statements of earnings (loss) and our condensed consolidated statements of cash flows for all periods presented. Prior year results have been recast to conform with the current year presentation.

We also entered into a Transition Services Agreement with the Buyer pursuant to which the Buyer is receiving certain services (the “Services”) to enable it to operate the Del Taco business after the closing of the Del Taco Sale. The Services include information technology, finance and accounting, human resources, supply chain and other corporate support services. The Company recorded $0.9 million related to the Services in the first quarter of 2026 as a reduction of selling, general and administrative expenses in the condensed consolidated statements of earnings (loss).

JACK IN THE BOX INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the Del Taco results for each period prior to the sale (in thousands, except per share data):


	Sixteen Weeks Ended
	January 18, 2026 (1)		January 19, 2025
Company restaurant sales	$	48,713	$	67,650
Franchise revenues	21,509		30,724
Company restaurant costs

SEC Form 10-Q filed by Jack In The Box Inc.