The fast-food restaurant chain will soon close as many as 200 underperforming restaurants. The move is part of Jack in the Box’s “Jack on Track” plan to improve its long-term financial performance.
San Diego-based Jack in the Box announced this week that it will close between 150 and 200 "underperforming" restaurants and will explore selling the Del Taco brand.
The company's "Jack on Track" plan to improve its financial performance will include between 80 to 120 of those closures by the end of 2025. The announcement did not indicate which restaurants would be shuttered, but said most of them "have been in the system for over three decades."
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WATCH HEREThe company also indicated it would "significantly reduce" spending on new restaurant development starting next year and would explore "strategic alternatives for the Del Taco brand, including a possible divestiture of the business." Jack in the Box acquired Del Taco in 2022 for around $585 million.
Recently named CEO Lance Tucker said in a statement, "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."
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