Key Highlights

  • Shares rose 15.61% in pre-market trading to $21.70, up from a prior close of $18.77
  • Third quarter adjusted EPS of $0.96 beat the $0.90 estimate by 6.67%, though Revenue of $257.7 million missed the $264.7 million estimate
  • Same store sales decreased 1.1% systemwide, with Quarter-to-date same store sales in the low single digit positive range
  • Reduced total Debt by $244 million since April 2025, ending the quarter with a net debt to adjusted EBITDA Leverage Ratio of 6.3 times
  • 52-week range stands at $8.92 to $23.86, with a market Capitalization of $358.01 million

Shares Jump on Earnings Beat and Debt Progress

Jack in the Box (NASDAQ:JACK) shares were trading at $21.70 in pre-market activity on August 13, 2026, up 15.61% from the prior close of $18.77. The rally follows third quarter fiscal 2026 results in which adjusted Earnings Per Share of $0.96 beat the $0.90 consensus estimate by 6.67%, even as revenue of $257.7 million came in below the $264.7 million estimate.

Same store sales decreased 1.1% systemwide, with Franchise same store sales down 1.2% and company-owned locations down 0.9%, driven by lower transaction counts. Performance weakened during the Hot Ones promotion window before stabilizing after the introduction of new menu Options and the Philly cheesesteak launch, with quarter-to-date same store sales now positive in the low single digit range.

What Jack in the Box Does

Jack in the Box is a San Diego, California based restaurant company founded in 1951 that operates and franchises two quick-service restaurant brands. Jack in the Box is one of the nation's largest hamburger chains with approximately 2,200 locations across 22 U.S. states, and Del Taco is the second-largest Mexican-American quick-service restaurant chain by units in the U.S., with approximately 600 restaurants across 17 states. The company operates under a predominantly asset-light, franchise-driven Business model, generating revenue through royalties, rent, and fees.

Debt Reduction Remains Central to the Turnaround

Restaurant level Margin decreased to 17.6% from 17.9%, with Commodity Inflation of 5.4% and labor costs at 33.7%, down 80 basis points, while franchise level margin fell to $60.3 million, or 37.4% of franchise revenues, from $66.2 million, or 39.3%, a year earlier. The company updated full fiscal year 2026 guidance, targeting a restaurant count of approximately 2,100, franchise level margin of approximately $265 million, and adjusted EBITDA between $225 million and $230 million. The company completed a refinancing on June 23rd, reducing total debt by $244 million since April 2025 and ending the quarter with $1.5 billion in debt. Forty restaurants have closed year to date, with the pace slower than anticipated, though accelerated closures are expected to extend into fiscal 2027 and continue into 2028 as part of the company's Jack on Track turnaround strategy, which is focused on closing underperforming stores, divesting Del Taco, and paying down debt.

Looking Ahead

Jack in the Box's pre-market surge reflects investor relief over the earnings beat and continued debt reduction progress under its Jack on Track turnaround plan, even as underlying same store sales trends remain soft. With store closures expected to accelerate over the next two fiscal years and additional guidance detail expected in November, the pace of the turnaround will likely remain the central story for the stock going forward.