Jack in the Box Closes Over 100 Locations as Financial Pressures Mount
For decades, Jack in the Box has been a familiar fixture in the American fast-food landscape, especially across the West and Southwest. Known for its late-night menu and irreverent branding, the chain built a loyal customer base over generations. But in recent months, that footprint has begun to shrink as financial pressures reshape the company’s future.
The fast-food operator said to close 80-120 locations by the end of 2025, with additional shutdowns expected through 2026. The closures come as the company grapples with declining sales, rising operating costs, and a broader slowdown affecting the restaurant industry.
While store closures have become common across fast food, Jack in the Box’s situation highlights how even long-established brands are being forced to make difficult decisions. The company’s strategy now centers on cutting costs, reducing debt, and reworking its restaurant portfolio in an effort to stabilize performance.
Scope of the Closures
Jack in the Box has already shuttered more than 70 restaurants in 2025 alone, according to company disclosures and earnings reports. These closures are part of a broader plan to eliminate between 150 and 200 underperforming locations by 2026, including as many as 120 by the end of this year.
The affected locations span multiple states, though the highest concentration has been in regions where the chain has long been most prominent. California, Texas, and Arizona collectively account for a large share of Jack in the Box’s footprint, and many of the closures have occurred in those markets. At the time the plan was announced, the company operated roughly 2,200 restaurants nationwide.
Executives have described the closures as a necessary step to improve unit economics. By exiting locations that consistently underperform, the company says it can redirect resources toward stronger stores and newer markets while reducing long-term financial strain.
Financial Pressures Force Hard Choices
Jack in the Box’s store closures follow a period of worsening financial results. The company reported a full-year net loss of more than $80 million, alongside a sharp drop in customer traffic. Same-store sales fell by more than 7% in recent quarters, marking consecutive periods of significant decline.
The closures are a key pillar of the company’s JACK on Track turnaround plan, a multi-year strategy designed to improve cash flow, reduce debt, and stabilize long-term performance. Under the plan, Jack in the Box is prioritizing fewer but more profitable restaurants, cutting costs tied to weaker locations, and simplifying operations to better withstand slower consumer spending.
The closures are also tied to a strategic reset known internally as the company’s turnaround plan. Leadership has emphasized a return to a simpler, more asset-light model — one that prioritizes fewer, more profitable restaurants rather than aggressive expansion at any cost.
What Comes Next for the Brand
Jack in the Box’s leadership says the closures are intended to position the chain for long-term stability rather than signal a retreat from the market. Alongside store shutdowns, the company is investing in restaurant remodels, technology upgrades, and menu simplification aimed at improving the customer experience where it continues to operate.
Still, the scale of the closures underscores how challenging the current environment has become for fast-food chains. As consumers cut back on discretionary spending and competition intensifies, brands that once seemed untouchable are being forced to reassess their size and strategy.
For Jack in the Box, the coming years will test whether contraction can lead to recovery or whether deeper changes are still ahead.
