Biglari Capital: 18% decline in Jack in the Box Share Price after Q1 Earnings

Rhea-AI Summary

Argus Feb 20 session

-6.74% close to close Open Argus

Details

News Market Reaction – JACK

On Feb 20, the day this news came out, JACK closed 6.74% below the previous close.

Data tracked by StockTitan Argus for the Feb 20 session.

Key Figures

Ownership stake: 9.86% Same-store sales decline: 6.7% Adj. EBITDA decline: 23% +5 more

Ownership stake

9.86%

Biglari Capital’s reported stake in JACK

Same-store sales decline

6.7%

Systemwide same-store sales change in Q1 FY2026

Adj. EBITDA decline

23%

Year-over-year adjusted EBITDA change in Q1 FY2026

Adj. EBITDA margin

19.5%

Q1 FY2026 adjusted EBITDA margin, down 400 bps year over year

EPS from continuing ops

$0.75

Q1 FY2026 EPS from continuing operations, down 54% year over year

Post-earnings price move

18% decline

Share price move from Feb. 18, 2026 to Feb. 19, 2026

Value loss since 2009

Over $800 million

Shareholder market value loss since Goebel joined the board

Goebel compensation since 2009

Over $3.7 million

Total compensation cited for David Goebel since joining the board

Historical Context

5 past events · Latest: Feb 19

5 events

1. Feb 19

   Product launch

   24h Move

   -16.0%

   Nationwide launch of matcha beverage platform across approximately 2,125 restaurants.

2. Feb 18

   Earnings release

   24h Move

   +3.1%

   Q1 2026 results with 6.7% same-store sales decline and lower revenue, EPS, EBITDA.

3. Feb 10

   Product relaunch

   24h Move

   +1.1%

   Return of Hot Mess Burger as limited-time 75th anniversary item nationwide.

4. Feb 10

   Proxy campaign

   24h Move

   -4.5%

   Biglari Capital letter urging vote against Chairman David Goebel at annual meeting.

5. Feb 10

   Proxy correction

   24h Move

   -4.5%

   Corrected Biglari release reiterating campaign to vote AGAINST Chairman Goebel.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

same-store sales, adjusted ebitda, eps, bps, +1 more

5 terms

same-store sales financial

"Same-store sales declined 6.7% systemwide, a sharp deterioration..."

Same-store sales measure the revenue generated by stores that have been open for a certain period, typically a year, comparing their sales over different time frames. It helps assess whether a business is growing due to increased customer activity at existing locations rather than new stores. For investors, this figure indicates the health and performance of a company's core operations, independent of expansion efforts.

adjusted ebitda financial

"Adjusted EBITDA declined approx. 23% year over year; and the adjusted EBITDA margin..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

eps financial

"EPS from continuing operations fell to $0.75 — a decline of 54%..."

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

View in glossary

bps financial

"adjusted EBITDA margin fell to 19.5%, down 400 bps from the comparable period..."

bps stands for "basis points," a unit equal to one hundredth of a percentage point (0.01%). Investors and analysts use bps to describe small changes in interest rates, yields, fees, or margins without confusing decimals — for example, a 50 bps move means a 0.50% change. Using bps makes it easier to compare and communicate tiny but meaningful shifts that can significantly affect bond prices, loan costs, or investment returns.

proxy solicitation regulatory

"Cost of proxy solicitation by JACK according to the Company's SEC filings"

Proxy solicitation is the process of asking shareholders for permission to vote their shares on corporate matters, usually by sending voting forms or requests by mail, email or phone. Investors should watch proxy solicitations because they signal attempts to change control, influence board elections or approve big deals — like neighbors organizing votes on a shared building project — and the outcome can materially affect a company’s strategy and stock value.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Continued Deterioration of JACK's Share Price and Operating Metrics Further Warrants Voting Against
the Election of David Goebel

SAN ANTONIO, Feb. 20, 2026 /PRNewswire/ -- Biglari Capital Corp. ("Biglari Capital"), the largest shareholder of Jack in the Box Inc. (NasdaqGS: JACK) with a 9.86% ownership stake, today issued the following statement:

Disastrous Quarterly Results Confirm the Need for Urgent Action 

For any shareholder still weighing whether Chairman Goebel's continued presence poses a real risk, JACK's first-quarter fiscal 2026 earnings provide the answer — in case the last 17 years were not convincing enough. The results are terrible by any measure:

• Same-store sales declined 6.7% systemwide, a sharp deterioration from the 0.4% gain in the same period last year;
  
  
• Adjusted EBITDA declined approx. 23% year over year; and the adjusted EBITDA margin fell to 19.5%, down 400 bps from the comparable period last year;
  
  
• EPS from continuing operations fell to $0.75 — a decline of 54% from the same period last year.

JACK's share price fell another 18% following the earnings announcement¹.

We Believe JACK's Board Is Incapable of Shifting Direction as Long as David Goebel Maintains Board Influence

We firmly believe these latest results are a direct consequence of the Board's continued reliance on Mr. Goebel, whose tenure has already led to massive shareholder value destruction, declining profitability, and an increased risk of financial insolvency.  

Since Mr. Goebel joined JACK's board in 2009²:

• Shareholders have lost over $800 million in market value;
• Meanwhile, Mr. Goebel has collected over $3.7 million in total compensation.

The value destruction is even higher since Mr. Goebel became chairman of the board in June 2020³:

• Shareholders have lost over $1.2 billion in market value;
• Meanwhile, Mr. Goebel has collected over $1.8 million in total compensation.

Given Mr. Goebel's disastrous performance, no true owner would approve of spending $5 million⁴ to defend his failed leadership and directorship. 

One more year of Mr. Goebel's leadership could cause irreparable harm. 

The latest earnings report is an ominous warning sign for JACK and compelling proof of why JACK needs to move away from Mr. Goebel's influence now. 

Today's share price is all the evidence that shareholders need to vote AGAINST Mr. Goebel, as waiting another year might just be too late. 

We urge ALL shareholders to vote AGAINST the re-election of 
David Goebel at the upcoming annual meeting.

If you have already voted your shares, you can still change your vote. Only your last dated vote counts.

Contact: info@saratogaproxy.com
                www.saratogaproxy.com/JACK

¹Source: FactSet. Based on change in share price from Feb. 18, 2026 to Feb. 19, 2026
²Source: Company SEC filings. FactSet, Change in market value from Dec. 16, 2008 to Feb. 18, 2026
³Source: Company SEC filings. FactSet, Change in market value from Jun. 15, 2020 to Feb. 18, 2026
⁴Source: Cost of proxy solicitation by JACK according to the Company's SEC filings

View original content:https://www.prnewswire.com/news-releases/biglari-capital-18-decline-in-jack-in-the-box-share-price-after-q1-earnings-302693540.html

SOURCE Biglari Capital Corp.