The San Diego Jack in the Box -based fast food chain announced this week to close 150 to 200 locations as part of a wider strategy to improve long -term finances.
The chain offering burgers, chicken sandwiches and curly fries is the last to reduce its footprint in the middle of inflationary pressures and high labor costs.
Popular destinations, including Shake Shack, Red Lobster and Rubio’s Coastal Grill, all the places closed last year in the middle of a reduction in consumption expenses caused by inflation.
Jack In the Box unveiled its “Jack on Track” plan on Wednesday, which aims to accelerate cash flows and repay its debt, according to a press release.
The company also said that it also envisaged Del Taco’s divestment, a Mexican American catering brand that Jack in the box acquired in 2022.
Between 80 and 120 Jack in the box, restaurants will close by the end of this year, said the company, and additional sub-performative locations will close in 2026. The company will close up to 200 windows in total, the majority of which have been active for more than 30 years.
He did not specify where the locations would close.
“Jack in the box works at its best and maximizes shareholders’ performance potential in a simplified and light business model,” CEO said Tucker in a press release. Jack on Jack on Track’s financial plan will cause a “global return to simplicity for the Jack in the Box business model and the history of investors,” he said.
The company said it would use the product for the sale of real estate holdings to reduce its debt charge. In January, the company was faced with current total liabilities of more than $ 426 million.
It will also considerably reduce expenses for the development of new restaurants in 2026, but will continue with planned improvements on its current restaurant base.
According to preliminary financial results, Jack in the box opened five locations and closed 12 in its second budgetary quarter. He added six del taco locations and closed four during the same period.
Sales with comparable stores for the quarter fell 4.4% for Jack in the box and down 3.6% for Del Taco. The net profit for the first quarter enclosed on January 19 was $ 33.7 million, compared to $ 38.7 million during the same period a year earlier, reflecting a “difficult macro environment on the scale of industry,” Tucker said in a statement.
The chain operates around 2,200 jack in the locations of the boxes in 22 states, mainly on the west coast. There are more than 40 locations in Los Angeles and the first location opened its doors in San Diego in 1951.
Jack in the Box Stock dropped by almost 6% Thursday. Actions have closed at $ 23.96 and fell 41% over one year to date.
