Jack in the Box has announced plans to close between 150 and 200 of its underperforming restaurant locations by the end of 2025. The initiative is part of a broader strategy to improve the company’s financial health and operational efficiency.

Details of the Closure Plan

According to the company’s announcement made on April 25, around 80 to 120 restaurants will cease operations before 2025 concludes. The remaining locations will close as their franchise agreements come to an end.

Strategic Goals

This closure initiative aligns with the “JACK on Track” program, which aims to foster sustainable growth for the brand. Key aspects of this strategy include:

• Closure of underperforming locations to facilitate positive net unit growth.
• Focus on cash flow improvement and debt reduction.
• Investment in technology and restaurant upgrades.
• Simplification of the business model.

CEO Lance Tucker emphasized the importance of these actions in positioning Jack in the Box for long-term competitiveness, stating, “Our actions today focus on three main areas…”

Company Overview and Future Plans

Currently, Jack in the Box operates around 2,200 restaurants across the United States, predominantly located on the West Coast, as well as 600 Del Taco locations, which it acquired in 2022. Following the planned closures, the company anticipates consistent net unit growth.

Jack in the Box is also exploring potential divestment options for the Del Taco brand as part of its strategic alternatives.

Sales Performance Insights

In its preliminary second-quarter report, Jack in the Box revealed a decline in same-store sales of 4.4%, while Del Taco experienced a 3.6% decrease. The final figures for the second quarter are expected to be unveiled in mid-May.