Jack in the Box to close at least 150 locations and consider sale of Del Taco as restaurant apocalypse continues
Jack in the Box announced Wednesday that it will close between 150 and 200 underperforming restaurants as part of a broad restructuring effort, with approximately 80 to 120 restaurants shuttering by December 31, 2025. The remainder will close over time, based on the termination dates of their respective franchise agreements.
Fast Company reached out to Jack in the Box for a list of locations it will be closing, but did not hear back by time of publishing.
The initiative is part of the company’s “JACK on Track” strategy—a comprehensive plan aimed at improving long-term financial performance across its restaurant system, strengthening its balance sheet, and reaffirming its commitment to an asset-light business model, all in pursuit of sustainable growth, according to a company press release.
As part of the strategy, Jack in the Box has also retained BofA Securities to explore strategic alternatives for the Del Taco brand, including the potential sale of the business.
“Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay down debt, while preserving growth-oriented capital investments related to technology and restaurant reimage; closing underperforming restaurants to position ourselves for consistent net unit growth and competitive unit economics; and, an overall return to simplicity for the Jack in the Box business model and investor story,” said Lance Tucker, chief executive officer at Jack in the Box.
The company also released select preliminary results in the press release for the second quarter of fiscal year 2025, which ended April 13. Same-store sales declined 4.4% for the Jack in the Box brand, while Del Taco saw a 3.6% decrease. Jack in the Box said in the press release that it will no longer provide financial guidance for Del Taco as it explores a sale.
One of the largest hamburger chains in the U.S., Jack in the Box operates approximately 2,200 restaurants across 22 states, with a strong presence on the West Coast. Del Taco has approximately 600 restaurants across 17 states.
Shares were down around 13% on Thursday morning. Over the past year, the stock has lost more than half its value.