Jack in the Box to Close 200 Restaurants, Cut Costs

Jack in the Box, under new CEO Lance Tucker, has announced a 'JACK on Track' restructuring plan that will close 150 to 200 underperforming restaurants—mainly decades-old locations—with 80 to 120 closures expected by the end of 2025. The company, which operates around 2,200 sites, is targeting $300 million in debt repayment as it responds to a 4.4% drop in same-store sales and a major stock price decline. Jack in the Box is also exploring the sale of its Del Taco brand, acquired in 2022, following persistent weak sales. The company will maintain technology and restaurant upgrades but plans to significantly reduce investments in new company-owned locations from 2026 onward. These actions reflect broader restaurant industry struggles, including widespread closures and bankruptcies driven by inflation and cautious consumer spending. Despite the retrenchment, Jack in the Box expects to return to positive net unit growth after the restructuring and potential divestitures.