Jack in the Box is planning to close between 150 to 200 underperforming restaurants and could sell the Del Taco brand it acquired in 2022.
The San Diego-based chain, which currently operates and franchises 2,200 restaurants across 22 states, primarily on the West Coast and Midwest, said it plans to close 80 to 120 locations by the end of 2025, with the “remaining underperforming restaurants closing thereafter based on respective franchise agreement termination dates.”
The company announced a “Jack on Track” plan to “improve long-term financial performance” across its restaurant system, which includes the “process of exploring strategic alternatives” for the Del Taco brand, including a possible “divestiture of the business.”
Jack in the Box acquired Del Taco for approximately $585 million in March 2022, citing “similar guest profiles, menu offerings and company cultures.”
There are currently approximately 600 Del Taco restaurants across 17 states.
“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,” said Lance Tucker, who was named CEO of Jack in the Box on March 31, in a news release.
Tucker explained that the restaurant closures are aimed at addressing the company’s balance sheet and to “position ourselves for consistent net unit growth and competitive unit economics.”
In the most recent financial quarter, Jack in the Box had five restaurant openings and 12 closures, while Del Taco had six restaurant openings and four closures.
While Jack in the Box did not disclose which specific locations would be closing, the company operates restaurants in 22 states — 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.
There is currently 41 Jack in the Box locations in 24 cities throughout western and southern Oregon, including:
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.