Jack in the Box closing up to 200 locations, may also sell Del Taco

SAN DIEGO — Jack in the Box plans to close up to 200 of its restaurants and is considering the sale of its Del Taco brand, the company said in a news release on April 23.

Jack in the Box, headquartered in San Diego, currently operates and franchises 2,200 fast-food restaurants across 22 states. The locations are primarily on the West Coast and the Midwest.

In its release introducing the “Jack on Track” plan, the company plans to close between 80 and 120 restaurants by the end of 2025, with the “remaining underperforming restaurants closing thereafter based on respective franchise agreement termination dates.”

The company, which has been in business for 74 years, has targeted restaurants that have been open for more than 30 years, according to its news release.

“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” Lance Tucker, who was named CEO at Jack in the Box on March 31, said in a statement. “Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay down debt, while preserving growth-oriented capital investments related to technology and restaurant reimage; closing underperforming restaurants to position ourselves for consistent net unit growth and competitive unit economics; and, an overall return to simplicity for the Jack in the Box business model and investor story.”

The company also said it will explore the possibility of selling Del Taco, a Mexican-inspired fast-food franchise that has approximately 600 locations across 17 states.

Jack in the Box purchased Del Taco in 2022 for $585 million.

In the most recent financial quarter, Jack in the Box opened five restaurants and closed 12 locations, while Del Taco had six restaurant openings and four closures.

Jack in the Box currently has locations in Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah and Washington.

The restaurant was founded in 1951 by Robert O. Peterson, who opened the first Jack in the Box in San Diego.

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