Popular fast food joint closing up 200 underperforming stores
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Jack in the Box announced a plan to close 150 to 200 underperforming restaurants as part of its "JACK on Track" initiative to improve financial performance. The closures target locations that are decades old and have been struggling, with 80 to 120 expected to shut down by the end of 2025. The company, which operates 2,200 Jack in the Box restaurants and 600 Del Taco locations, aims to reduce debt by $300 million over the next two years while focusing on technology and restaurant reimaging to drive future growth.
The fast-food chain also revealed it is exploring a sale of its Del Taco brand, acquired in 2022, due to its lack of significant contribution to overall profits. CEO Lance Tucker stated the closures and potential divestment are steps to simplify the business model, improve cash flow, and achieve consistent net unit growth. Jack in the Box reported a 4.4% decline in same-store sales for the second quarter of 2025, reflecting broader industry challenges as consumers cut back on spending amid economic uncertainty.
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This move follows a trend among fast-food chains, with others like Red Robin and Wendy’s also closing underperforming locations to bolster financial health. Jack in the Box’s stock has dropped 57% over the past year, underscoring the urgency of its turnaround plan. The closures, while aimed at long-term stability, highlight the pressure on the fast-food sector as rising costs and shifting consumer habits continue to impact profitability.