new York
Cnn
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Jack in the box plans to end around 10% of its locations and explore a sale of its Del Taco brand in the midst of a wider overhaul of the fast food chain that is struggling as customers reduce expenses.
The 74-year-old chain announced on Wednesday that it planned to close 150 to 200 “sub-performative” locations, with 80 to 120 restaurants closing by the end of the year. Jack in the box has around 2,200 restaurants, which are mainly located on the American West Coast.
The closures aim to “tackle our balance sheet to speed up cash flows and repay the debt,” said Jack CEO in the Tucker Box in a press release, the chain hoping that the payment of 300 million dollars of debt in the next two years. He hopes that closings will lead to “coherent and positive growth of net unit”.
He also explores the “strategic alternatives” for Del Taco, a Mexican -inspired chain that he bought only three years ago. However, the purchase was assaulted with problems, Tucker revealed on a call with analysts, including increasing inflation and difficult competition from rooted competitors, such as Taco Bell.
“I do not know that the results (Del Taco) in the coming years will significantly contribute to Jack’s results,” said Tucker, adding that it “was logical to move them to another owner”.
Jack In the Box announced his income, revealing that Del Taco sales fell 3.6% and will no longer provide financial advice when he explores a sale. Meanwhile, Jack in the box sales fell 4.4% in the second quarter of 2025.
The difficulties of Jack In the Box (Jack) are reflected in the course of its shares, which plunged 57% in the past year and is almost 7% down of premature negotiations on Thursday.
Other fast food chains are also in difficulty, but not to the extent of Jack in the box. Rivals like McDonald’s reported a start to the end of the year and Chipotle said this week that it had noticed a slowdown in expenses. However, Taco Bell provides for an 8% increase in sales stimulated by the trend of new menu elements.
