Jack in the Box Inc. has announced its second-quarter 2025 financial results, revealing a decrease in same-store sales by 4.4%. This decline is comprised of a 4.5% drop in franchise same-store sales and a 4.0% decrease in company-owned same-store sales. Systemwide sales for the quarter decreased by 4.9%. The company's diluted loss per share was reported at ($7.47), which includes a non-cash goodwill and intangible impairment charge for Del Taco. Despite the challenging environment, the company's operating earnings per share stood at $1.20. Jack in the Box's restaurant-level margin, a non-GAAP measure, was $18.7 million or 19.6%, down from $23.3 million or 23.6% in the previous year. This decline was primarily due to lower sales and increased costs in commodities, wages, and utilities, partially offset by price increases. At the franchise level, the margin was $68.3 million or 40.0%, a slight decrease from $71.7 million or 40.4% the previous year. This was mainly driven by lower sales affecting royalties and percentage rent, along with higher franchise costs. The net restaurant count saw a slight decrease with five openings and twelve closures during the quarter. No updates were made to the company's guidance, which remains as stated in the "JACK on Track" plan from April 23, 2025. Additionally, Jack in the Box did not repurchase any shares in the second quarter, with $175.0 million remaining under the Board-authorized stock buyback program. The company has also discontinued its dividend.
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