February 25, 2011; Los Angeles, CA, USA; Jack in the Box restaurant mascots Jack and Jack Jr. in attendance as the Los Angeles Lakers play against the Los Angeles Clippers at the Staples Center. Mandatory Credit: Gary A. Vasquez-USA TODAY Sports
San Diego, California – San Diego-based fast-food giant Jack in the Box announced Wednesday it will close up to 200 restaurants nationwide and is considering selling its Del Taco brand as part of a sweeping financial restructuring plan aimed at reversing the company’s recent decline.
The move is part of the chain’s new “JACK on Track” initiative, which outlines efforts to streamline operations, reduce debt, and return to profitable growth. Up to 120 locations are expected to shut down by the end of 2025, with closures targeting underperforming stores.
“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best… within a simplified and asset-light business model,” CEO Lance Tucker said in a statement. “Our actions today focus on three main areas: accelerating cash flow, closing underperforming restaurants, and simplifying our business for consistent net unit growth.”
Jack in the Box currently operates approximately 2,200 restaurants across 22 states. The upcoming closures represent roughly 10% of its total footprint. The company is also exploring “strategic alternatives” for Del Taco, the 600-location Mexican fast-food chain it acquired in 2022 for $575 million.
That acquisition has since become a liability. Sales at Del Taco fell 3.6% in the second quarter of 2025, while Jack in the Box’s core brand saw a 4.4% drop. In a call with analysts, Tucker acknowledged the Del Taco deal has been challenged by inflation, increased competition from chains like Taco Bell, and underwhelming financial returns. “I don’t know that Del Taco’s results over the next several years are going to meaningfully contribute to Jack’s bottom line,” he said.
The company’s stock has fallen 57% in the past year and dropped another 7% in premarket trading Thursday. Jack in the Box now hopes to pay down $300 million in debt over the next two years by reducing expenses and refocusing on higher-performing assets.
While other fast-food competitors are also experiencing slowdowns due to tightened consumer spending, Jack in the Box’s troubles are among the most severe. By contrast, Taco Bell is projecting an 8% rise in sales, buoyed by innovative new menu items and stronger brand momentum. Here’s hoping that Jack can actually get back on track.
