JACKNasdaqRetail-Eating PlacesUS GAAP · USD

Jack In The Box Inc

Jack in the Box Inc. operates and franchises two quick-service restaurant brands: Jack in the Box, known for burgers, tacos, breakfast, and late-night variety, and Del Taco, which combines Mexican and American QSR items. The company is headquartered in San Diego and earns revenue mainly from company-operated restaurant sales plus franchise royalties, fees, rent, and advertising contributions.

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Revenue1,465m USD
−6.7 %y/y
Operating profit (EBIT)-18.1m USD
−121.9 %y/y
EBIT margin-1.2%
−6.5 ppy/y
Net income-80.7m USD
−120.0 %y/y
Free cash flow74.1m USD
+431.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-50005001,0001,5002,000m USD2020: 1,022 m USD2020: EBIT 231 m USD20202021: 1,144 m USD2021: EBIT 290 m USD20212022: 1,468 m USD2022: EBIT 248 m USD20222023: 1,692 m USD2023: EBIT 279 m USD20232024: 1,571 m USD2024: EBIT 83 m USD20242025: 1,465 m USD2025: EBIT -18 m USD20251,465-18
RevenueOperating profit (EBIT)
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Business

Share of revenue
Jack in the Box restaurant sales55 %

Company-operated and franchised Jack in the Box menu sales across burgers, tacos, breakfast, snacks, and late-night items.

Del Taco restaurant sales25 %

Company-operated and franchised Del Taco sales of Mexican-American QSR items, including burritos, tacos, and drive-thru meals.

Franchise royalties and fees12 %

Royalty income, franchise fees, and other charges paid by franchisees based on restaurant sales and agreements.

Advertising and other franchise services5 %

Contributions from franchisees for marketing, advertising, and related support services.

Rental and occupancy revenue3 %

Rental income and related occupancy revenue tied to franchised or owned restaurant properties.

Products

Reported · share of revenue
42.8%25.2%15.2%14.8%FY2025100 %
  • Restaurant Sales42.8 %
  • Franchise25.2 %
  • Royalty15.2 %
  • Advertising14.8 %
  • Technology Service1.4 %
  • Franchise Fees0.7 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The core customers are value-oriented quick-service restaurant guests who want convenience, speed, and customizable menu choices. Jack in the Box serves broad dayparts, including breakfast at night and burgers in the morning, while Del Taco appeals to consumers seeking Mexican-American QSR food with drive-thru convenience. A second customer group is franchisees, who buy brand rights, operating support, and marketing participation to run local restaurants under the company’s systems.

Jack in the Box consumers

Guests buying burgers, tacos, breakfast, snacks, and late-night meals for convenience and variety.

Del Taco consumers

Guests buying Mexican-American QSR items, especially drive-thru meals and value-oriented menu choices.

Franchise operators

Operators that purchase franchise rights and ongoing support to run Jack in the Box or Del Taco restaurants.

Advertising fund participants

Franchise restaurants contributing to brand marketing and local awareness programs.

Strategy

Management is focused on improving cash generation, optimizing the asset base, and using the franchise model to support capital-light growth. The company has also been evaluating strategic alternatives for Del Taco, including a sale, while continuing to pursue refranchising and property monetization. These actions are aimed at simplifying the portfolio and strengthening returns from the core Jack in the Box system.

Refranchise and asset monetizationShort term

Reduces capital intensity and can improve cash flow and return on capital.

Del Taco portfolio reviewShort term

Management is exploring strategic alternatives to simplify the business and unlock value.

Brand and menu innovationMedium term

Distinctive menu variety supports traffic, daypart expansion, and customer retention.

Operational technology and franchise supportMedium term

Labor scheduling, inventory systems, and order confirmation tools improve speed and consistency.

Geography

The business is concentrated in the western and southern United States, where most Jack in the Box and Del Taco restaurants operate. The company also has a small international footprint in Guam and Mexico, which adds limited but visible cross-border exposure. Del Taco is broader in state coverage, while Jack in the Box remains the larger brand by restaurant count and system presence.

Risks

The company is exposed to intense QSR competition, traffic and consumer-spending sensitivity, and labor cost inflation, all of which can pressure restaurant margins and same-store sales. It also faces brand-specific execution risk at Del Taco, where management has already recorded impairment charges and is considering divestiture. Cybersecurity, franchisee performance, and seasonal demand swings are additional risks because the model depends on technology, systemwide brand health, and consistent guest traffic.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Labor cost inflation and staffing shortages1Consumer demand weakness2Cybersecurity and technology disruption4Seasonality and weather-related volatility5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Labor cost inflation and staffing shortagesImpact: HighLikelihood: Medium

    Restaurants need enough workers to maintain service speed, quality, and internal controls.

    Exposure: Company-operated restaurants and franchise system support

  2. Consumer demand weaknessImpact: HighLikelihood: Medium

    QSR traffic is sensitive to unemployment, confidence, and local economic conditions.

    Exposure: Same-store sales and franchise royalties

  3. Del Taco brand impairment and strategic uncertaintyImpact: High

    Management has already identified impairment indicators and is evaluating a sale.

    ExposureGoodwillTrademarkPortfolio strategy
  4. Cybersecurity and technology disruptionImpact: MediumLikelihood: Medium

    The business relies on POS, ordering, and data systems across company and franchise restaurants.

    ExposureRestaurant operationsCustomer dataPayment systems
  5. Seasonality and weather-related volatilityImpact: MediumLikelihood: Low

    Restaurant sales and profitability fluctuate with holidays, travel, and weather conditions.

    Exposure: Quarterly revenue and operating margin comparability

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Accounting

Judgemental items
Revenue recognition for franchise royalties and fees

Royalties are based on a percentage of franchise sales, so reported revenue depends on franchise system performance and contract timing.

Impact: Affects franchise revenue growth and comparability across periods

Goodwill impairment

Del Taco goodwill was tested quantitatively after negative sales trends and strategic uncertainty.

Impact: Can materially reduce earnings through non-cash impairment charges

Indefinite-lived trademark impairment

The Del Taco trademark was written down after fair value fell below carrying value.

Impact: Can create large one-time charges and change balance sheet carrying values

Seasonality

Holiday travel, weather, and consumer patterns affect restaurant traffic and profitability.

Impact: Quarterly results may not be directly comparable

Lease and property-related accounting

Owned properties, franchise tenant improvements, and occupancy costs affect reported operating expenses and asset values.

Impact: Influences margins, depreciation, and impairment risk

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Last updated: 24/09/2026