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Jack in the Box plans to close dozens of restaurants by the end of the year in an effort to reduce costs and increase revenue.
The franchise said earlier this year it would close between 150 and 200 underperforming stores by 2026, including 80 to 120 by the end of this year, under a block closure program.
In May, Jack In The Box said it had closed 12 locations, followed by another 13 closures in August and another 47 reported in the company’s November earnings report, according to the Daily Mail.
FAST FOOD CHAIN TO CLOSE UP TO 22 ‘UNDERPERFORMING’ LOCATIONS
Jack in the Box plans to close dozens of restaurants by the end of the year. (Justin Sullivan/Getty Images/Getty Images)
This brings the total to 72, which still falls short of the company’s year-end target with a week to go.
The company hopes the closures will improve its financial performance as stores see fewer customers, beef prices rise and the company has significantly more debt than it generates in annual revenue.
It reported a net loss of $80.7 million for the full fiscal year ended in September. The franchise also reported that revenue fell 7.4% in the fourth quarter of fiscal 2025, reflecting a year-over-year decline compared to the same quarter in 2024 and the second consecutive quarter of declines of more than 7%.
The franchise said it would close between 150 and 200 underperforming stores by 2026. (Melinda Crawford/Education Images/Universal Images Group via Getty Images/Getty Images)
“In my time to date as CEO, I have worked quickly with our teams to conclude that Jack in the Box is operating at its best and maximizing shareholder return potential, within a simplified and asset-light business model,” CEO Lance Tucker said in April.
“Our actions today focus on three key areas: addressing our balance sheet to accelerate cash flow and pay down debt while maintaining growth-oriented capital investments related to technology and restaurant rebranding; 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.”
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Jack in the Box has closed 72 underperforming locations to date. (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 operates approximately 2,200 restaurants in the U.S., most of them in California, Texas and Arizona.
