The San Diego-based fast food chain Jack in the Box has announced plans to close between 150 and 200 locations as part of its broader strategy to improve long-term finances. This move comes amid inflationary pressures and high labor costs affecting the fast food industry. Other popular chains like Shake Shack, Red Lobster, and Rubio’s Coastal Grill also closed locations last year due to reduced consumer spending driven by inflation.
Jack in the Box unveiled its “Jack on Track” plan, aiming to accelerate cash flow and reduce debt. The company also considers divesting from Del Taco, a Mexican American fast food brand acquired in 2022. Between 80 and 120 Jack in the Box restaurants will close by the end of this year, with additional underperforming locations shutting down in 2026. Most of these locations have been operational for over 30 years.
The company plans to use proceeds from the sale of real estate holdings to reduce its debt load, which was over $426 million as of January. It will also significantly reduce spending on new restaurant development in 2026 but continue improving its current restaurant base.
In its fiscal second quarter ended April 13, Jack in the Box opened five locations and closed 12. Same-store sales for the quarter decreased by 4.4% for Jack in the Box and 3.6% for Del Taco. Net income for the first quarter ended January 19 was $33.7 million, down from $38.7 million during the same period the previous year.
— new from Los Angeles Times