Jack in the Box to discontinue dividend

As part of Capital Allocation initiatives, the company states: “Jack in the Box (JACK) will accelerate cash flow by selling a select number of owned real estate holdings, and direct proceeds towards debt paydown/leverage reduction. Jack in the Box will discontinue its dividend effective immediately and direct a majority of those funds toward debt paydown/leverage reduction, with the remainder directed toward share repurchases. Jack in the Box will significantly reduce its spend on company-owned new unit restaurant development beginning in 2026, but will continue with planned improvements of its current restaurant base via restaurant reimages. Jack in the Box will continue to invest in its evolving technologies and digital capabilities, enabling significant growth through its digital sales channels. Jack in the Box will implement a block closure program, which is projected to result in the closure of approximately 150-200 underperforming restaurants – a majority of which have been in the system for over three decades. The program will consist of approximately 80-120 restaurant closures between now and 12/31/2025, with the remaining underperforming restaurants closing thereafter based upon respective franchise agreement termination dates. This program does not include the expected 1.5% to 2.0% of system unit closures for FY 2025, and an ongoing annual closure rate thereafter of approximately 1% of system units beginning in FY 2026. Upon completion of the program, Jack in the Box expects to deliver consistent, positive net unit growth, helped by the strong performance of new markets and tremendous whitespace opportunities.”