Jack in the Box is closing up to 200 underperforming locations

American fast-food chain Jack in the Box says it will close up to 200 “underperforming” restaurants to strengthen its balance sheet as customers pare back their spending. 

The San Diego-based company is also pursuing the sale of its struggling Del Taco restaurant brand, the company said during a “business update” and conference call with investors Wednesday. 

Jack in the Box says it will shutter 150-200 of its least profitable locations, most of which have existed for over 30 years. Between 80-120 restaurants will close before the year’s end, while the remainder of the 200 will wind down operations based on franchise agreements, the company said. The plan will take place under a “block closure program” that is distinct from other planned restaurant closures, of up to 2% of existing stores. 

Beginning in 2026, Jack in the Box expects to maintain a store closure rate of about 1%. 

The company did not release a list of stores it plans to shutter in 2025, but said more details will be available in August. 

The closures are aimed at strengthening the company’s balance sheet and reducing its debt. “Jack in the Box has gotten away from some of the core characteristics that have made it a successful driver of shareholder value in the past and it’s time we return to those basics,” CEO Lance Tucker said on the call. 

Jack in the Box pre-announced second-quarter earnings, showing that sales at its restaurants dipped 4.4%, and sales at Del Taco dropped 3.6%.

The company’s stock price has suffered too, plunging 57% over the past year, reflecting its woes. 

The chain is not alone in struggling to get customers through its doors. Fast-food giant McDonald’s CEO Chris Kempczinski last year acknowledged that the company’s “value leadership gap has shrunk,” which prompted the restaurant chain to introduce new promotions to try to win back customers. 

Consumer sentiment plunged in April for the fourth straight month, with Americans expressing concern over economic uncertainty and fears that tariffs could drive up prices and further strain their budgets.