Jack in the Box Announces Plans to Close 200 Underperforming Locations By 2026
Jack in the Box announced its “Jack on Track” financial plan to improve its performance through 2025. The company explained its plans to close several hundred stores and is considering selling the Del Taco brand as well.
Difficult Times for Fast Food
It’s no secret that the fast food industry has experienced a lull as increased costs and shifting consumer habits have driven many franchises to explore cost-cutting measures. Americans are eating at home more often in an effort to save money and make healthier choices.
Competition From Fast Casual Dining
In addition to shifting consumer spending habits, fast food restaurants are now struggling to compete with fast casual dining options. These restaurants are often viewed as a higher quality experience, and the price difference is enough for many Americans to justify cutting into fast food margins significantly.
Jack on Track Plan
The “Jack on Track” plan was released by the fast food giant earlier this year and announced several cost-cutting measures that will go into effect over the course of the coming year. This is what customers can expect.
Several Location Closures
The restaurant closure program will involve between 150 and 200 store closures. Many of these restaurants have been open for decades but declining business has ruled them a financial liability for the company. 80-120 of these stores will be closed by the end of 2025.
Potential Sale of Del Taco Brand
The financial plan also announced “strategic alternatives process for Del Taco,” which included a possible divestiture of the business. The company saw 6 Del Taco openings and 4 Del Taco closures in the second quarter of 2025, indicating that the business is not contributing to the overall growth of the company in the way they had hoped.
Reduce Spend on New Restaurant Development
The company plans to “significantly reduce spend on company-owned unit restaurant development” starting in 2026. Instead, it will invest in currently high-performing stores. In other words, some Jack in the Box locations will be receiving some upgrades in the near future.
A Message From The CEO
Lance Tucker, who was named CEO in March 2025 stated, “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.
Jack in the Box Expectations
The company expects that with these changes implemented over the next year, the brand will see consistent, positive net growth. They believe the store closures and other cost-cutting measures will make way for investment in the strong-performing locations.
Conclusion
Jack in the Box is not the only restaurant planning significant store closures, as other popular dining chains like Red Lobster, Rubio’s, TGI Fridays, and Denny’s have all made similar moves. The trend signifies a big change in spending habits for American consumers.
