San Diego-based fast food chain Jack in the Box announced plans this week to close 150 to 200 locations as part of a broader strategy to improve long-term finances.
The chain offering burgers, chicken sandwiches and curly fries is the latest to shrink its footprint amid inflationary pressures and high labor costs.
Popular destinations including Shake Shack, Red Lobster and Rubio’s Coastal Grill all closed locations last year amid a reduction in consumer spending driven by inflation.
Jack in the Box unveiled its “Jack on Track” plan Wednesday, which aims to accelerate cash flow and pay down its debt, according to a news release.
The company also said it is also considering divestiture from Del Taco, a Mexican American fast food brand that Jack in the Box acquired in 2022.
Between 80 and 120 Jack in the Box restaurants will close by the end of this year, the company said, and additional underperforming locations will shut down in 2026. The company will close as many as 200 storefronts in total, the majority of which have been in operation for more than 30 years.
It did not specify where locations would be closing.
“Jack in the Box operates at its best and maximizes shareholder return potential within a simplified and asset-light business model,” Chief Executive Lance Tucker said in a statement. The Jack on Track financial plan will bring about an “overall return to simplicity for the Jack in the Box business model and investor story,” he said.
The company said it will use proceeds from the sale of real estate holdings to reduce its debt load. As of January, the company faced total current liabilities of more than $426 million.
It will also significantly reduce spending on new restaurant development in 2026, but will continue with planned improvements on its current restaurant base.
Jack in the Box opened five locations and closed 12 in its fiscal second quarter ended April 13, according to preliminary financial results. It added six Del Taco locations and shut down four during the same period.
Same-store sales for the quarter were down 4.4% for Jack in the Box and down 3.6% for Del Taco. Net income for the first quarter ended Jan. 19 was $33.7 million, down from $38.7 million during the same period a year earlier, reflecting a “difficult industry-wide macro environment,” Tucker said in a statement.
The chain operates about 2,200 Jack in the Box locations across 22 states, primarily on the West Coast. There are more than 40 locations in Los Angeles, and the first location opened in San Diego in 1951.
Jack in the Box stock was down nearly 6% on Thursday. Shares closed at $23.96 and have fallen 41% year to date.
