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Fast Food Shakeup: Jack in the Box to Close 200 Restaurants
Jack in the Box, a major name in America's fast food industry, has announced plans to close between 150 and 200 restaurant locations as part of a major strategy shift. The move is aimed at improving the company's financial health and ensuring long-term growth.
Why Jack in the Box Is Closing Restaurants
The closures are part of the company's "JACK on Track" initiative, which focuses on three main goals:
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Strengthening cash flow and reducing debt
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Investing in technology and restaurant remodeling
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Simplifying operations for better efficiency
Most of the restaurants shutting down are older locations that have been open for decades but are no longer performing well. Closing these stores will help the brand focus on stronger, more profitable locations.
How Many Locations Will Shut Down and When?
Jack in the Box plans to close about 80 to 120 restaurants by the end of 2024.
The remaining underperforming stores will shut as their franchise agreements expire.
It’s important to note that these closures are in addition to the company’s normal annual closure rate of about 1% starting from fiscal year 2026.
CEO Lance Tucker’s Vision for the Future
Lance Tucker, now the permanent CEO of Jack in the Box, explained that these moves are necessary to position the brand for consistent, positive growth in the coming years.
"Our actions focus on improving the balance sheet, streamlining operations, and supporting growth-oriented investments," Tucker said.
Tucker officially became the permanent CEO in March 2025 after serving as interim CEO following the departure of former chief executive Darin Harris.
What About Del Taco?
Jack in the Box also owns around 600 Del Taco restaurants after acquiring the brand in 2022.
Now, the company is exploring options for Del Taco, including a potential sale, as part of its broader restructuring plan.
Financial Performance So Far
Preliminary reports show that:
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Jack in the Box same-store sales dropped by 4.4% in the second quarter.
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Del Taco sales declined by 3.6% during the same period.
The company expects to release full financial results by mid-May 2025.
Despite these numbers, Jack in the Box projects operating earnings per share (EPS) between $5.05 and $5.40 for fiscal 2025, not counting the effects of the JACK on Track program.
However, slight declines in same-store sales compared to the previous year are expected.
What This Means for Customers
Even with store closures, Jack in the Box promises to continue improving customer experience by investing in technology, remodeling newer stores, and simplifying its menu and operations.
Fast food fans can expect a fresher, faster, and more modern Jack in the Box experience in the future.
