Shares of the burger chain dropped 17% to $18.34 during midday trading, extending a difficult period that has seen the stock retreat 53% over the past year. The sell-off follows a significant swing in the bottom line, with the company reporting a net loss of $2.46 million, or 13 cents per share. This figure stands in stark contrast to the $33.7 million net income reported during the same quarter the previous year.

Operational Headwinds

On an adjusted basis, Jack in the Box earned $1.00 per share, falling short of the $1.08 anticipated by Wall Street analysts. While total revenue declined 5.8% to $349.5 million, it still marginally exceeded FactSet estimates. However, the top-line performance could not mask underlying weaknesses in core operations.

Same-store sales saw a 6.7% decline, driven by a reduction in transaction volume and a shift in the product mix. According to the company, while higher menu prices provided some cushion, they were not enough to overcome the impact of thinning customer traffic.