By Kelly Cloonan

Jack in the Box had lower sales in its latest quarter, while margins narrowed as it faced higher costs for commodities, labor and more.

The San Diego, Calif., fast-food chain on Wednesday swung to a second-quarter loss of $142.2 million, or $7.47 a share, from a profit of $25 million, or $1.26 a share, a year earlier. The company incurred a goodwill and intangible impairment charge of $203.2 million for its Del Taco brand due to an internal quantitative impairment assessment which doesn't impact future operations.

Adjusted earnings per share were $1.20, ahead of estimates of $1.11 a share according to analysts polled by FactSet.

Revenue fell 7.8% to $336.7 million. Analysts expected $342.5 million.

Jack in the Box comparable sales fell 4.4% in the quarter as lower transactions and mix more than offset higher prices. Del Taco same-store sales fell 3.6% on fewer transactions. The lower overall revenue was primarily driven by refranchising transactions for Del Taco, the company said.

Restaurant-level margins also fell, down to 20% from 24% a year ago, as it faced continued inflation for commodities, wage and utilities, as well as higher operating costs.

For the full year, the company maintained its outlook shared last month, which guides for Jack in the Box same-store sales growth in the negative low-to-mid-single digits, compared to a previous outlook for sales flat to up 1%.

The guidance from last month suspended all outlooks for Del Taco indefinitely as the company explores strategic alternatives for the brand, including a possible divestiture.

Chief Executive Lance Tucker said Jack in the Box is continuing progress on its turnaround plan to become a more simple, efficient company and investor story.

"I am encouraged by our marketing plans in the back half of 2025, which we expect to energize sales despite the difficult industry-wide macro environment in which we continue to operate," Tucker said.

Shares fell 4.6% in after-hours trading Wednesday.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 14, 2025 16:50 ET (20:50 GMT)

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