Financial Strategy and Operational Changes
Jack in the Box plans to close 150 to 200 underperforming restaurants as part of its "JACK on Track" financial strategy aimed at accelerating cash flow and reducing debt.
The company is exploring a possible divestiture of Del Taco, which it acquired in 2022, as part of its efforts to streamline operations and improve long-term financial performance.
Impact and Future Plans
The closures, affecting locations primarily on the West Coast, are anticipated by the end of the year, with some closing when franchise agreements end. Jack in the Box has not specified which locations will be affected.
Jack in the Box aims to use proceeds from the sale of real estate holdings to reduce its debt, facing over $426 million in total current liabilities as of January. The company also plans to significantly cut spending on new restaurant developments in 2026.