Jack in the Box has announced the closure of more than 70 locations as part of a strategic initiative aimed at addressing ongoing financial challenges. The fast-food chain plans to shutter between 80 and 120 underperforming restaurants by the end of December 2025, contributing to a broader goal of closing between 150 and 200 locations by 2026.
The company reported that it has already closed 72 outlets this year, including 12 in May, 13 by August, and an additional 47 in its November earnings report. With just days remaining in the year, Jack in the Box is falling short of its closure target but remains committed to its plans for restructuring.
According to the franchise, these closures are intended to improve financial performance as various factors, including decreasing customer traffic and rising beef prices, are affecting operations. Jack in the Box has also reported a significant financial setback, posting a net loss of $80.7 million for the fiscal year ending in September 2025. Additionally, the company experienced a 7.4% decline in sales during the fourth quarter, marking two consecutive quarters of sales drops exceeding 7% year-over-year.
Strategic Plan for Recovery
CEO Lance Tucker emphasized a commitment to simplifying the business model during an April statement, noting that the focus lies on enhancing shareholder value and streamlining operations. “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,” Tucker stated.
In conjunction with the closures, Jack in the Box has also completed the sale of its subsidiary, Del Taco, to Yadav Enterprises for approximately $119 million. This move is part of a broader turnaround strategy aimed at stabilizing the company’s financial situation.
With around 2,200 restaurants across the United States, predominantly in states like California, Texas, and Arizona, Jack in the Box is taking decisive steps to navigate its current financial landscape. As the year comes to a close, the franchise’s efforts to strategically reduce its footprint will be closely monitored by investors and analysts alike.
