Photo: Getty Images
Jack in the Box announced plans to close 10% of its locations and is exploring a potential sale of its Del Taco brand amid struggling sales.
The fast food said it would be shutting down 150 to 200 "underperforming" locations, which includes 80 to 120 closing by the end of 2025, among its estimated 2,200 restaurants, most of which are located on the U.S. West Coast, but also other regions. Jack in the Box CEO Lance Lucker issued a statement obtained by CNN claiming that the closures were focused on “addressing our balance sheet to accelerate cash flow and pay down debt,” as the company is tasked with paying off $300 million over the next two years.
Tucker said that he hoped the closures will result in “consistent, net positive unit growth.” The CEO also confirmed that "strategic alternatives" were being taken for the Mexican-inspired chain Del Taco, which was purchased by Jack in the Box in 2022.
Lucker confirmed that Del Taco had experienced struggling sales due to rising inflation, as well as competition from competitors such as Taco Bell.
“I don’t know that (Del Taco’s) results over the next several years are going to meaningfully contribute to Jack’s bottom line,” Tucker said in the statement, adding that it “makes sense to move them to another owner."
Pre-announced earnings revealed that Jack in the Box's sales decreased by 4.4% in the second quarter of 2025, while Del Taco dipped 3.6%. Jack in the Box's stock price was also reported to have decreased by 57% during the last year as it was 7% lower in premarket trading on Thursday (April 24).