Jack in the Box is planning to close around 10% of its locations and is considering selling its Del Taco brand as part of a broader restructuring effort, amid challenges due to reduced consumer spending. The fast-food chain, which has been in operation for 74 years, announced on Wednesday that it would close between 150 to 200 of its “underperforming” locations, with 80 to 120 closures expected by the end of the year. Jack in the Box operates approximately 2,200 restaurants, primarily located on the U.S. West Coast.
CEO Lance Tucker explained that the closures aim to improve the company’s financial situation by accelerating cash flow and reducing debt. Jack in the Box hopes to pay off $300 million in debt over the next two years, with the goal of achieving “consistent, net positive unit growth.”
In addition to the closures, Jack in the Box is also considering “strategic alternatives” for its Del Taco brand, which it acquired three years ago. Tucker acknowledged that the acquisition has faced challenges, such as rising inflation and competition from larger brands like Taco Bell. He expressed doubts about Del Taco’s ability to contribute meaningfully to Jack in the Box’s financial performance and suggested that it may be better for another owner to take over the brand.
Sales at Del Taco dropped 3.6% recently, and Jack in the Box has decided to stop providing financial forecasts as it evaluates the possibility of selling the chain. Meanwhile, Jack in the Box itself saw a 4.4% drop in sales during the second quarter of 2025.
The company’s difficulties are reflected in its stock price, which has fallen by 57% over the past year and dropped nearly 7% in premarket trading on Thursday. While other fast-food chains like McDonald’s and Chipotle have also faced challenges, Jack in the Box’s struggles appear more severe. Taco Bell, in contrast, is projecting an 8% sales increase, helped by the popularity of new menu items.
