Jack In The Box To Close Hundreds Of Locations And Considering Sale Of Del Taco
Jack in the Box has announced “JACK on Track,” a long-term financial goal that includes closing 150 to 200 underperforming restaurants and potentially selling Del Taco. The chain is working with BofA Securities to help lower its debt and create a strategy to help turn around the Del Taco brand.
In a company press release, Jack in the Box chief executive officer Lance Tucker said, “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.”
The release outlines several strategic approaches Jack in the Box has to reduce spending, like opening fewer locations and reallocating capital from underperforming restaurants to pay down debt. Many of these restaurants have operated for 30-plus years. Jack in the Box plans to close 80 to 120 locations by the end of 2025, with the remaining soon after.
The fast food chain is down 4.4% in same-day sales, according to the 2025 fiscal year second quarter report, and Del Taco is down 3.6%. Of the 6 new Del Taco locations opened this year, 4 have been closed. Meanwhile, Jack in the Box opened 5 new restaurants but wound up closing 12 in total.
