Jack in the Box to Revitalize by Closing Underperforming Outlets and Exploring Del Taco Sale

In a strategic move, the 74-year-old Jack in the Box chain revealed plans on Wednesday to shut down between 150 and 200 of its “underperforming” locations. By the end of the year, 80 to 120 restaurants are expected to be closed. As part of a broader overhaul, Jack in the Box intends to close around 10% of its outlets and is considering selling its Del Taco brand. This decision comes as the fast-food giant faces challenges with reduced consumer spending.

The closures are a key component of a strategy to “improve our balance sheet to boost cash flow and reduce debt,” said CEO Lance Tucker in a statement. With this action, the company aims to clear $300 million in debt over the forthcoming two years, aspiring for “consistent, net positive unit growth.” Additionally, the company is evaluating “strategic alternatives” for Del Taco, a Mexican-inspired brand acquired just three years prior.

Tucker acknowledged during a call with analysts the acquisition has struggled with issues, including rising inflation and stiff competition from well-established rivals like Taco Bell. Pre-empting its earnings report, Jack in the Box disclosed that Del Taco’s sales fell by 3.6%, and it plans to cease providing financial guidance as it investigates a sale. Meanwhile, Jack in the Box experienced a 4.4% decline in sales during the second quarter of 2025.