Jack in the Box is set to close between 150 and 200 restaurants by the end of 2025. The closures will begin with 80 to 120 locations that are no longer profitable. CEO Lance Tucker announced the news shortly after taking over in March. He said the move is aimed at reducing debt and improving the company’s long-term financial health. Tucker also confirmed the suspension of dividends to preserve capital.
Del Taco Sale Under Review Amid Financial Pressure
The company is also exploring the possible sale of Del Taco, a brand it acquired in 2022 for $575 million. Jack in the Box has brought in Bank of America Securities to advise on the sale. Del Taco was expected to help grow the brand with its drive-thru business, but recent results have been disappointing. Demand has slowed and competition in the fast food industry has grown stronger. Sales for Jack in the Box dropped 4.4% in the second quarter ending April 13.
For the 2025 fiscal year, same-store sales are projected to fall by low-to-mid-single digits. That follows a 1.3% decline in 2024.
Tucker said, “These actions are necessary to protect our future and ensure we remain a strong competitor in the marketplace.”
The company’s stock is down over 50% from last year, reflecting the struggle to keep up with changing consumer spending and value-focused rivals.
