Jack In The Box Inc. (JACK) served up a disappointing fourth quarter on Wednesday, missing earnings expectations and watching its stock slide in after-hours trading.

The Numbers

The fast-food chain reported earnings of 30 cents per share for the quarter, falling well short of the 45-cent consensus estimate. Revenue came in at $326.19 million, which actually topped analyst expectations of $319.65 million but still represented a decline from $349.29 million in the same quarter last year.

So you beat on revenue but miss on earnings—what gives? The answer shows up in the margins and operational metrics, which tell a tougher story.

Behind the Miss

Same-store sales dropped 7.4% during the quarter, while systemwide sales fell 7.2%. Restaurant-level margin contracted to 16.1% from 18.5% a year earlier, and franchise-level margin slipped to 38.9% from 40.4% in the prior year period.

Perhaps most telling: Jack In The Box closed 47 restaurants during the fourth quarter while opening just 15 new locations. That's a net loss of 32 stores, which isn't exactly the trajectory you want to see.

"While performance in the fourth quarter did not meet our expectations, we remain focused on restoring positive momentum for the Jack in the Box brand," said CEO Lance Tucker.

Market Reaction

Investors weren't particularly forgiving. JACK stock dropped 4.17% to $13.78 in extended trading following the earnings release. When you miss earnings by that much and your store count is shrinking, the market tends to ask hard questions about the turnaround timeline.