Jack in the Box is exploring a sale of its Del Taco brand as it looks to boost financial performance.
Jack in the Box announced plans to close 150 to 200 underperforming restaurants across the US. The company identified these locations due to their poor sales and age, with many being several decades old. CEO Lance Tucker stated that the actions focus on addressing debt, preserving growth-oriented investments, closing underperforming restaurants for consistent net unit growth and competitive economics, and simplifying the business model.
Approximately 80-120 of the closed restaurants will shut down by the end of the year, while the remaining ones will close upon their respective franchise agreement termination dates. The company aims to achieve consistent positive net unit growth after the closures.
The block closure plan is part of the “JACK on Track” initiative and includes measures to improve financial performance and balance sheet. Jack in the Box is also exploring strategic alternatives for its Del Taco brand, which it has owned since 2022.
The company’s current store count stands at around 2,200 Jack in the Box restaurants and 600 Del Taco locations. Preliminary second-quarter same-store sales posted a decline of 4.4% for Jack in the Box and 3.6% for Del Taco. The CEO forecasted operating earnings per share of $5.05 to $5.40 for the 2025 fiscal year, excluding the effects of its JACK on Track initiative.
This plan aims to position the company for consistent net unit growth and competitive economics, while reducing debt and improving financial performance.
Source: https://www.foxbusiness.com/lifestyle/fast-food-chain-closing-up-200-underperforming-locations