Jack in the Box Inc. (NASDAQ:JACK) Shares Drop 7% After Missing Q3 2025 Revenue and EPS Estimates

Jack in the Box Inc. (NASDAQ:JACK Misses Q3 2025 Revenue and EPS Estimates, Shares Drop 7% After-Hours

Jack in the Box Inc. reported its third-quarter fiscal 2025 earnings, falling short of analyst expectations on both revenue and earnings per share (EPS). The company posted revenue of $333.0 million, below the consensus estimate of $347.3 million, while adjusted EPS came in at $1.02, significantly lower than the expected $1.19. The market reacted negatively, with shares declining approximately 7% in after-hours trading.

Key Financial Highlights vs. Estimates

• Revenue: $333.0M (vs. $347.3M expected) – 4.1% miss
• EPS (Non-GAAP): $1.02 (vs. $1.19 expected) – 14.3% miss
• Same-Store Sales Decline:
  • Jack in the Box: -7.1% (company-owned -6.4%, franchise -7.2%)
  • Del Taco: -2.6% (company-operated -2.2%, franchise -2.7%)
• Restaurant-Level Margins:
  • Jack in the Box: 17.9% (down from 21.0% YoY)
  • Del Taco: 9.7% (down from 13.4% YoY)

Market Reaction & Performance

The immediate after-hours sell-off suggests investor disappointment, particularly given the broader challenges in the quick-service restaurant (QSR) sector. Over the past month, JACK shares had already declined by 14.3%, reflecting weakening sentiment ahead of earnings. The latest results reinforce concerns around declining traffic, inflationary pressures, and operational headwinds.

Outlook vs. Analyst Expectations

Management provided updated full-year guidance, which includes:

• Adjusted EBITDA: $270M–$275M
• Operating EPS: $4.55–$4.73
• Same-store sales: Negative low- to mid-single digits

Analysts had projected full-year revenue of $1.504 billion and EPS estimates closer to the higher end of the company’s range. The guidance implies continued pressure, though cost-saving initiatives under the "JACK on Track" plan may help stabilize margins.

Press Release Summary

• CEO Lance Tucker emphasized operational improvements but acknowledged a "challenging macro environment."
• Net restaurant count declined (21 closures for Jack in the Box, 9 for Del Taco).
• Non-cash impairment charges ($6.3M for Del Taco) impacted results but do not affect cash flow.
• Capital allocation: No share repurchases in Q3; $175M remains under the buyback program.

Conclusion

Jack in the Box’s Q3 results reflect ongoing struggles with sales erosion and margin compression, exacerbated by inflationary costs. While management is taking steps to streamline operations, the market’s reaction indicates skepticism about a near-term turnaround.

For more detailed earnings estimates and historical performance, visit JACK’s earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making decisions.