Strategic Closures and Del Taco Sale
Jack in the Box announced the closure of 150 to 200 underperforming restaurants as part of its "JACK on Track" financial plan, aiming to accelerate cash flow and reduce debt by $300 million over two years.
The company is also exploring a sale of its Del Taco brand, acquired in 2022, citing Del Taco's underperformance and the challenging competitive landscape as primary reasons.
Financial and Market Challenges
Jack in the Box's sales dipped 4.4% in Q2 2025, with Del Taco sales falling 3.6%. The company's stock has plummeted 57% over the past year, reflecting broader challenges in the fast food industry.
Amidst inflationary pressures and high labor costs, Jack in the Box's decision to close locations and potentially sell Del Taco mirrors industry-wide struggles, with other chains also facing reduced consumer spending.