American restaurant company Jack in the Box reported a net income of $33.7m for the first quarter (Q1) of the fiscal year 2025, down 12.9% from $38.7m in the same period of the previous year.
For the quarter ended 19 January 2025, total revenues fell 3.7% to $469.4m compared to $487.5m in the previous year.
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The decline in revenue is primarily attributed to the refranchising of Del Taco restaurants.
Earnings per share (EPS) came in at $1.75, while operating EPS on a non-GAAP [generally accepted accounting principles] basis stood at $1.92, slightly down from $1.95 in Q1 2024.
The restaurant company operates and franchises two restaurant chains: hamburger chain Jack in the Box and Mexican-American quick-service restaurant chain Del Taco.
Same-store sales for Jack in the Box grew 0.4%, with franchise-operated locations rising 0.5%, while company-owned stores saw a 0.4% decline.
However, Del Taco’s same-store sales dropped by 4.5%, contributing to weaker overall performance. Adjusted earnings before interest, taxation, depreciation and amortisation also dipped to $97.2m, compared to $101.8m last year.
Despite these challenges, systemwide sales for Jack in the Box edged up 0.5%, while Del Taco saw a 1.9% decline.
Jack in the Box interim principal executive officer Lance Tucker said: “The first quarter saw a good start to top-line performance and bottom-line earnings flow-through as we battled through a difficult industry-wide macro environment.
“In my new role, I will be continuing to assess capital allocation, investments and ways to accelerate free cash flow — all while executing on our fundamentals to ensure we regain our sales momentum as we move through 2025.”
Tucker took over as interim leader of Jack in the Box on 24 February, following the departure of CEO Darin Harris, who left for a role outside the restaurant industry.
The company adjusted its capital expenditure forecast to a range of between $100 and $105m for the fiscal year ending 28 September 2025.
Jack in the Box plans to repurchase $5m worth of shares during this period.
