Jack in the Box has reported a decrease in its first quarter (Q1) fiscal 2025 r(FY25) evenue, with figures down 7.8% to $336.7m from $365.3m in the same quarter of the previous year.
This decline is primarily attributed to the refranchising transactions of Del Taco, which Jack in the Box acquired in 2022.
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The company recorded a net loss of $142.2m, a stark contrast to the net earnings of $25m in the second quarter of the previous year.
Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA_, a non-generally accepted accounting principles (GAAP) measure, stood at $66.5m for the quarter, down from $75.7m in the previous year.
The diluted loss per share for the quarter was a notable $7.47) while operating earnings per share, another non-GAAP measure, were $1.20, down from $1.46 in the previous year.
In terms of same-store sales, Jack in the Box experienced a 4.4% decrease, with franchise same-store sales down 4.5% and company-owned same-store sales falling 4%.
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By GlobalDataDespite an increase in price, both transactions and mix saw a downturn from the year before
Consequently, systemwide sales for the quarter decreased 4.9%.
Restaurant-level margin, a non-GAAP measure, was $18.7m or 19.6%, a decrease from the previous year’s $23.3m or 23.6%.
Franchise-level margin also saw a dip, coming in at $68.3m or 40%, down from $71.7m or 40.4% a year earlier.
Del Taco’s performance mirrored the parent company’s challenges, with same-store sales decreasing 3.6%.
This was due to a 4.2% decline in franchise same-store sales and a 1.7% drop in company-operated same-store sales. The decrease in transactions was partially offset by a rise in price.
Systemwide sales for the fiscal second quarter fell 4.5%.
Restaurant-level margin for Del Taco was $6.1m or 12.8%, a decrease from the previous year’s $11.4m or 16.8%.
Franchise-level margin also decreased to $5.7m or 24.4%, compared to $6.1m or 28.9% a year earlier.
Jack in the Box CEO Lance Tucker stated: “I am encouraged by our marketing plans in the back half of 2025, which we expect to energise sales despite the difficult industry-wide macro environment in which we continue to operate.
“As we stated when announcing the recent ‘Jack on Track’ plan, we are addressing the areas of need to improve the business, and I am confident in our ability to establish consistent top-line trends while becoming a simpler, more efficient company and investor story.”
