A Jack in the Box drive-thru menu stands in the parking lot in Los Angeles, Calif. on July 30, 2024.
Ashley Hayes-Stone/SFGATE
Jack’s big red smile is about turn upside down.
In an effort to combat low sales and reduce debt, California fast food giant Jack in the Box has announced it will close up to 150 to 200 underperforming stores, a majority of which have been around for more than three decades, according to a Wednesday press release.
Article continues below this ad
Under new CEO Lance Tucker, who assumed the post on March 31, the San Diego company revealed a multi-pronged plan called “Jack on Track” to “improve long-term financial performance across its restaurant system.” The company reported that same-store sales declined 4.4% in the second quarter of 2025 compared to 2024.
“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” Tucker said in the release. “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.”
In addition to the closures, the company said it plans to sell off real estate holdings and possibly the Del Taco brand, which it acquired just three years ago, in 2022 for $575 million. The potential Del Taco sale follows a string of weak performances and the closure of all but one of the Mexican chain restaurants in Colorado, Restaurant Business reported.
Jack in the Box plans to close 80 to 120 locations by the end of this year, with the remaining underperforming storefronts shuttering sometime in the future, based on individual franchise agreements.
Article continues below this ad
Robert O. Peterson founded Jack in the Box in San Diego in 1951. Today, there are approximately 2,200 restaurants across 22 states, predominantly on the West Coast. Del Taco has approximately 600 restaurants in 17 states.
April 24, 2025
