Jack in the Box 2026 Strategy Focuses on Stability

With Del Taco officially leaving the picture in December, Jack in the Box will now spend the rest of its 2026 fiscal calendar—and beyond—focusing on the core business.

And there is much work to do.

Systemwide same-store sales declined 6.7 percent in Q1 year-over-year, comprising a 7 percent decrease among franchises and a 4.7 percent drop among company-operated stores. The decreases resulted from softer transactions and negative menu mix, partially offset by menu price increases. CEO Lance Tucker attributed the performance gap between company and franchise units to corporate restaurants pricing lower and leaning more into digital promotions.

Tucker described Q1 financials as “choppy but broadly in line with our expectations” and said that Jack in the Box didn’t finish the calendar year as strongly as leadership would’ve hoped. It wasn’t until January that the brand began to feel momentum (notably, the chain’s Q1 ended January 18).

Jack in the Box used January to kick off its 75th anniversary marketing calendar, including the return of the Chicken Supreme Munchie Meal. The brand also released Jibbi, a new backpack charm. Customers’ desire to collect all four charms led to higher Munchie Meals sales, which come with a higher average check.

The company will spend the rest of the year leaning into its 75th anniversary with a combination of classics and new product launches aimed at driving customer trial. Last week, Jack in the Box brought back its Hot Mess Burger for a limited time, along with a collectible antenna ball. The brand is also pulsing in 75-cent tacos and Jumbo Jacks.

“We’ve always been smaller than some of these really big chains like a McDonald’s or Taco Bell, Burger King, whoever it may be. I think in order for us to be successful when they’re out there with heavy value, we’ve got to have our own consistent value,” Tucker said. “And then we’ve got to lean into what really differentiates Jack, which is innovation. We have a lot of innovation, both within our LTOs but also within our core menu.”

This year, Jack in the Box plans to present value and innovation more efficiently. The chain simplified its marketing calendar and reduced the quantity of its marketing messages to “focus on stronger execution of fewer LTOs and drive media effectiveness,” Tucker said.

The concerted effort is part of the brand’s new “Jack’s Way” framework, which is geared toward improving the guest experience.

One part of the strategy is beefing up operations. For example, Jack in the Box increased field support in restaurants to provide more real-time feedback for franchisees and employees. The brand is also reinforcing customer service–based fundamentals and enhanced its audit process to hold stores accountable. More work is coming later this year, including in-restaurant workshops.

Another objective is modernization. Last year, Jack in the Box rolled out new POS and back-of-house systems, which have enabled cost efficiencies and better upsell capabilities.

The chain is also implementing cosmetic, mini refreshes at its restaurants, like re-striping and sealing the parking lot and cleaning up landscaping and driving paths. Tucker said these tasks can be completed for under $20,000 per store, but added that financially savvy franchisees could likely finish them for under $10,000.

Among the 20 restaurants that have been refreshed, Jack in the Box is seeing low single-digit sales increases. The program has expanded to Southern California, where the brand has a high concentration of stores.

Jack in the Box would like for the refreshes to lead into a full-scale reimage program, which Tucker said will happen “at a tremendously economical price.” Jack in the Box intends to subsidize some of the costs for franchisees as well. The CEO estimated that corporate helped with about 35 percent of expenses during the most recent reimage program.

“We would expect to make a meaningful contribution to whatever reimage program we would eventually roll out,” Tucker said.

Jack in the Box is also working through its “JACK on Track” debt-reduction plan. One big accomplishment was selling Del Taco for $119 million to franchisee Yadav Enterprises.

Additionally, the brand wants to improve franchisee economics by shuttering underperforming locations. In the first quarter, operators closed 12 units.

So far, overall, Jack in the Box has seen a roughly 30 percent sales transfer benefit to adjacent restaurants. CFO Dawn Hooper noted, however, that the pace of closures is moving slower than expected as franchisees carefully evaluate leases and sales transfer benefits on a case-by-case basis.

Jack in the Box is also carefully allocating capital expenditures and gaining more cash by selling off real estate (the chain hopes for $50 to $60 million worth of proceeds by the end of fiscal 2026).

The ultimate goal is paying down debt. Jack in the Box paid down $105 million in August and expects to wipe away $200 million more over the course of the JACK on Track plan.

Jack in the Box finished Q1 with 2,128 restaurants systemwide—1,979 franchises and 149 company-operated restaurants. In fiscal 2026, the brand projects 20 new openings and 50 to 100 closures, most of which will be franchise stores.

Although fiscal 2026 began sluggishly, Tucker said the chain should see improvement throughout the year. Jack in the Box expects same-store sales to range from negative 1 percent to positive 1 percent. First-quarter results will be pressured (in part due to weather conditions), but financials should improve sequentially for the rest of fiscal 2026. Company-owned restaurant-level margins should be between 17 and 18 percent, including mid-single-digit commodity inflation and low-single-digit wage inflation.

“2026 is about laying the foundation for sustainable long-term growth, which requires doing a lot of hard work right now. We’re confident that the actions we’re taking will lead to a stronger, more stable platform from which to grow. We are beginning to see early results that reinforce that we are on the right path,” Tucker said.