Jack in the Box is set to close 150 to 200 underperforming restaurants as it struggles to stay afloat in today’s tough economic climate. The burger behemoth is also considering selling the Del Taco brand it acquired only three years back.
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According to CNN, Jack in the Box has announced plans to shut down 150 to 200 “underperforming” locations. Of these, 80 to 120 are expected to close by the end of the year. With approximately 2,200 restaurants, primarily based along the U.S. West Coast, the company aims to refocus on its stronger-performing outlets.
Jack in the Box CEO Lance Tucker announced that the recent closures are part of a strategic effort to strengthen the company’s balance sheet, boost cash flow, and reduce debt. The chain aims to pay off $300 million in debt within the next two years. Tucker expressed optimism that these measures will pave the way for “consistent, net positive unit growth” moving forward.
Jack in the Box is Also Considering “Strategic Alternatives” for Del Taco
The company is also considering “strategic alternatives” for Del Taco, the Mexican-inspired chain it acquired just three years ago. However, the acquisition has faced significant challenges, Tucker admitted during a call with analysts. These include rising inflation and stiff competition from established rivals like Taco Bell.
“I don’t know that [Del Taco’s] results over the next several years are going to meaningfully contribute to Jack’s bottom line,” Tucker explained. He added that it “makes sense to move them to another owner.”
Jack in the Box recently shared an early update on its earnings, reporting a 3.6% drop in sales at Del Taco. The company also announced it is suspending financial guidance as it explores a possible sale. Additionally, Jack in the Box itself reported a 4.4% drop in sales during the second quarter of 2025.
Jack in the Box has faced significant challenges, evident in its stock performance, per CNN. Over the past year, the stock has plummeted 57%, with an additional decline of nearly 7% in premarket trading last week.
Of course, the 74-year-old burger chain isn’t the only one feeling the heat recently. Denny’s is also shuttering locations along with Bar Louie. Meanwhile, Hooters closed multiple locations and is completely retooling in an effort to survive our current economy and changing consumer tastes.