Q2 2025 Jack in the Box Inc Earnings Call Transcript
Key Points
- Jack In The Box Inc (JACK) is focusing on becoming a simpler, asset-light company to drive sustainable long-term growth.
- Digital sales have increased to 18% system-wide, with continued investment in technology and digital initiatives.
- The rollout of new point-of-sale systems and kiosks is progressing, with nearly 1,500 restaurants equipped.
- The company is committed to strengthening its balance sheet, accelerating cash flow, and paying down debt.
- Jack In The Box Inc (JACK) plans to open between 35 to 40 new restaurants in fiscal 2025, including in new markets like Chicago.
- Same-store sales decreased by 4.4% for the Jack brand, with both franchise and company-owned locations experiencing declines.
- Restaurant level margins decreased due to lower sales, inflation in commodities, wages, and utilities, and higher operating costs.
- The company recorded a significant non-cash goodwill and intangible asset impairment charge of $203.2 million for Del Taco.
- Jack In The Box Inc (JACK) has discontinued its dividend and did not repurchase any shares during the quarter.
- The company is facing challenges with integrating new technology with existing legacy systems, impacting sales temporarily.
Thank you for standing by. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jack in the Box second quarter 2025 earnings webcast conference call. (Operator Instructions)
Thank you. I will now turn the call over to Chris Brandon, Vice President of Investor relations. Please go ahead.
Thanks, operator, and good afternoon, everyone. We appreciate you joining today's conference call, highlighting results from our second quarter 2025. With me today, our Chief Executive Officer, Lance Tucker; our Interim Chief Financial Officer, Dawn Hooper; and our Chief Customer and Digital Officer, Ryan Ostrom.
Select second quarter results were pre-announced on April 23, as part of our Jack on track plan announcement. Feel free to refer to the press release and conference call which took place that day for additional commentary related to the pre-announced metrics. For this reason, today's prepared remarks will be
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