*Jack in the Box announced on Tuesday a significant step in its restructuring efforts, unveiling plans to close 150-200 underperforming restaurants across the U.S. This move is part of the company’s broader financial strategy, dubbed “JACK on Track,” designed to improve cash flow and reduce debt, according to the news release.
Currently, Jack in the Box operates around 2,200 locations, primarily on the West Coast, including many in Southern California. The closures, set to take place by the end of 2025, are expected to improve the chain’s overall performance. Lance Tucker, the new CEO of Jack in the Box, emphasized that these changes will streamline operations and maximize shareholder value.
Tucker, who took the helm on March 31, stated, “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.”
While the company’s primary focus is on its namesake brand, the restructuring may also affect Del Taco, which Jack in the Box owns. Del Taco, the second-largest Mexican-American fast-food chain, operates around 600 locations. The company has initiated a “strategic alternatives process” for Del Taco, though details remain sparse.
In addition to the closures, Jack in the Box will implement other financial measures to strengthen its position. These include selling select real estate holdings, halting its dividend payout, and significantly reducing the development of new company-owned locations starting in 2026. However, the company plans to continue investing in its digital capabilities and improving existing restaurant locations.
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“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,” said Tucker.
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