Jack in the Box, a popular fast-food chain, has announced plans to close up to 200 locations across the U.S. The company is also looking to sell off the Del Taco brand that it acquired in 2022. The moves come as part of a broader plan to improve the company’s balance sheet and lower its debt.
Highlights
- Jack in the Box announced that it plans to close up to 200 locations nationwide as it deals with its financial difficulties.
- The company is also looking to sell off the Del Taco brand, which it purchased three years ago.
- The announcement did not provide details of the locations that will be shut down.
Jack In the Box Announces Closure of 200 Locations
As per the announcement, Jack in the Box will shut down its underperforming and least profitable locations. Between 80 and 120 of the company’s restaurants will stop operations by the end of the year. Many of these locations have been serving guests for over three decades.
The remaining 200 locations will scale back operations in accordance with the franchise agreements. Separate from other planned restaurant closures affecting up to 2% of existing locations, the plan will be executed under a “block closure program.”
Further, Jack in the Box will have a rate of store closures at around 1%, starting in 2026. The company currently has 2,200 locations across 22 states, and now 10% of the stores are being shut down. The locations that will be closed down have not been disclosed.
Del Taco Put On Sale
The “Jack on Track” plan that has been announced by the company has the goal to “improve long-term financial performance”. As part of the plan, it is “exploring strategic alternatives” for the Del Taco brand as well.
The Del Teco brand, which operates at 600 locations in 17 states, has been put on sale. Speaking about the brand and the decision to look for new owners for it, the company’s CEO, Lance Tucker, said, “I don’t know that (Del Taco’s) results over the next several years are going to meaningfully contribute to Jack’s bottom line.”
The company aims to achieve consistent, net positive unit growth through closures and also wants to pay off $300 million in debt within two years.
Dip In Earnings Indicate the Financial Struggles
Jack in the Box had pre-announced its earnings in the second quarter of 2025, which showed a drop in revenue. There was a 4.4% decrease in earnings from the Jack in the Box restaurants. A 3.6% drop in revenue for Del Taco was also revealed through the announcement. The stock value of Jack in the Box dropped 57% over the past year and was down nearly 7% in premarket trading on Thursday as well.
Jack in the Box is facing the same predicament that many of its competitors are facing. As economic uncertainty looms, it has affected customer spending patterns.
