Financial Strategy and Restaurant Closures
plans to close 150-200 underperforming restaurants as part of its "JACK on Track" initiative, aiming to improve financial performance and accelerate cash flow.
The closures, affecting both Jack in the Box and Del Taco locations, are expected to occur by the end of 2025, with specific underperforming sites closing upon franchise agreement expirations.
Del Taco Divestiture and Financial Outlook
Jack in the Box is exploring strategic alternatives for its Del Taco brand, including a possible sale, following its acquisition of Del Taco in 2022 for $575 million.
Despite the closures and potential divestitures, Jack in the Box aims for consistent net unit growth and competitive unit economics, with a focus on simplifying its business model and investor story.