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Jack in the Box plans to close dozens of restaurants by the end of the year, with the aim of reducing costs and increasing revenue.
The franchise announced earlier this year that it would close between 150 and 200 underperforming stores by 2026, including 80 to 120 by the end of this year, as part of a wholesale closure program.
In May, Jack In The Box said it closed 12 locations, followed by 13 more closures in August and another 47 reported in the company’s November results, according to the Daily Mail.
FAST-FOOD CHAIN CLOSES UP TO 22 “UNDER-PERFORMING” LOCATIONS
Jack in the Box plans to close dozens of restaurants by the end of the year. (Justin Sullivan/Getty Images/Getty Images)
That brings the total to 72, which remains short of the company’s year-end target with one week to go.
The company hopes the closures will improve its financial performance because the stores are seeing fewer customers, beef prices are rising, and the company is carrying far more debt than it generates in annual profits.
It reported a net loss of $80.7 million for the full year ended September. The franchise also reported that its sales fell 7.4% in the fourth quarter of fiscal 2025, reflecting a year-over-year decline compared to the same quarter of 2024 and marking the second consecutive quarter with a decline of more than 7%.
The franchise announced it would close between 150 and 200 underperforming stores by 2026. (Melinda Crawford/Education Images/Universal Images Group via Getty Images / Getty Images)
“During my tenure as CEO, I have worked quickly with our teams to conclude that Jack in the Box is operating optimally and maximizing shareholder return potential, under a simplified, lean business model,” CEO Lance Tucker said in April.
“Our actions today focus on three main areas: improving our balance sheet to accelerate cash flow and repay debt, while preserving growth-oriented capital investments related to technology and restaurant rebranding; close underperforming restaurants to position ourselves for consistent unit net growth and competitive unit economics; and an overall return to simplicity for the Jack in the Box business model and investor story. »
WENDY’S TO CLOSE HUNDREDS OF STORES ACROSS THE US NEXT YEAR
So far, Jack in the Box has closed 72 underperforming locations. (iStock/iStock)
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The company also announced this week that it has completed the sale of Del Taco to Yadav Enterprises for approximately $119 million as part of its turnaround plan.
Jack in the Box works around 2,200 restaurants in the United States, most in California, Texas and Arizona.
