Jack in the Box to Close Up to 200 Stores in Strategic Overhaul

May 09, 2025 • 10 min read

Jack in the Box Inc. will close as many as 200 restaurants—nearly 9% of its system—as part of a sweeping restructuring plan announced this week. The closures, which target underperforming units across older markets, come alongside a broader initiative aimed at stabilizing the company’s financials and reorienting its growth strategy.

Dubbed “JACK on Track,” the plan focuses on accelerating cash flow, cutting debt, and pausing certain expansion efforts. The company said it expects to shutter between 80 and 120 stores by the end of 2025, with the remainder tied to franchise expirations over the coming years. Jack in the Box currently operates approximately 2,200 locations.

“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,” said CEO Lance Tucker. “Closing underperforming restaurants positions us for consistent, long-term financial performance.”

The announcement comes after a tough quarter. Preliminary results showed same-store sales declined 4.4% at Jack in the Box and 3.6% at Del Taco, which the company acquired in 2022. Executives said they are now exploring strategic alternatives for the Del Taco brand, and have retained BofA Securities to advise on the process.

“We believe this is the right time to reassess Del Taco’s fit within our long-term strategy,” said Tucker. “We remain committed to maximizing shareholder value across our portfolio.”

To improve liquidity, Jack in the Box plans to reduce its debt load by $300 million over the next 12 to 18 months through the sale of real estate holdings and by suspending its dividend. It will also scale back new company-owned restaurant development starting in 2026, shifting focus toward reimaging existing stores and investing in digital capabilities.

Jack in the Box shares fell nearly 6% following the announcement and are down 41% year-to-date. The company said it will provide full second-quarter results in May.

“The environment is challenging, but we’re being decisive,” said Tucker. “We’re refocusing on what we do best.”