Jack in the Box (JACK) faces an "unfavorable backdrop" heading into its fiscal Q3 results as commodity inflation and debt refinancing are expected to pressure results, RBC Capital Markets said in a Friday note.

According to the note, easier comparisons, limited-time offers, the World Cup and value initiatives could support same-store sales, but a sluggish consumer backdrop and volatile energy prices are expected to partially offset those factors.

RBC analysts also expect margins to remain under pressure, particularly from beef inflation, while the benefit from dairy deflation has moderated since the start of 2026.

RBC said debt refinancing is a material headwind to earnings per share and does not appear to be reflected in Street estimates.

RBC models fiscal Q3 EPS of $0.76 and fiscal 2026 EPS of $3.25.

The company will report its fiscal Q3 results on Wednesday.

RBC maintained its outperform rating on Jack in the Box with a $16 price target.

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