Jack in the Box Shuts Down Multiple Locations Due to Financial Challenges

Jack in the Box is set to close dozens of restaurants by the end of the year as part of a strategic move to cut costs and enhance revenue. The franchise announced earlier this year that it plans to shutter between 150 and 200 underperforming locations by 2026, with an immediate goal of closing 80 to 120 by the end of this year through a block closure program.

As of May, Jack in the Box had already closed 12 locations, followed by an additional 13 closures by August. By November, the company reported a total of 47 closures, according to the Daily Mail.

FAST-FOOD CHAIN CLOSING 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)

So far, the total number of closed locations stands at 72, which is still below the company’s year-end target with only a week remaining. The franchise aims to improve its financial performance amid declining customer traffic, rising beef prices, and a significant debt load that exceeds its annual earnings.

In its latest fiscal report, Jack in the Box revealed a net loss of $80.7 million for the year ending in September. Additionally, sales fell by 7.4% in the fourth quarter of fiscal 2025, marking a year-over-year decline compared to the same quarter in 2024. This downturn represents the second consecutive quarter with a drop exceeding 7%.

The franchise said it would shutter between 150–200 underperforming stores by 2026. (Melinda Crawford/Education Images/Universal Images Group via Getty Images / Getty Images)

CEO Lance Tucker emphasized the need for a simplified and asset-light business model, stating, “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.” He outlined three main focus areas: addressing the balance sheet to enhance cash flow, closing underperforming restaurants, and returning to simplicity in the business model.

WENDY’S TO CLOSE HUNDREDS OF US STORES NEXT YEAR

Jack in the Box has closed 72 underperforming locations so far. (iStock / iStock)

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In a recent development, the company announced the completion of the sale of Del Taco to Yadav Enterprises for approximately $119 million, which is part of its broader turnaround strategy. Currently, Jack in the Box operates around 2,200 restaurants across the U.S., primarily located in California, Texas, and Arizona.

Jack in the Box is set to close dozens of restaurants by the end of the year as part of a strategic move to cut costs and enhance revenue. The franchise announced earlier this year that it plans to shutter between 150 and 200 underperforming locations by 2026, with an immediate goal of closing 80 to 120 by the end of this year through a block closure program.

As of May, Jack in the Box had already closed 12 locations, followed by an additional 13 closures by August. By November, the company reported a total of 47 closures, according to the Daily Mail.

FAST-FOOD CHAIN CLOSING 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)

So far, the total number of closed locations stands at 72, which is still below the company’s year-end target with only a week remaining. The franchise aims to improve its financial performance amid declining customer traffic, rising beef prices, and a significant debt load that exceeds its annual earnings.

In its latest fiscal report, Jack in the Box revealed a net loss of $80.7 million for the year ending in September. Additionally, sales fell by 7.4% in the fourth quarter of fiscal 2025, marking a year-over-year decline compared to the same quarter in 2024. This downturn represents the second consecutive quarter with a drop exceeding 7%.

The franchise said it would shutter between 150–200 underperforming stores by 2026. (Melinda Crawford/Education Images/Universal Images Group via Getty Images / Getty Images)

CEO Lance Tucker emphasized the need for a simplified and asset-light business model, stating, “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.” He outlined three main focus areas: addressing the balance sheet to enhance cash flow, closing underperforming restaurants, and returning to simplicity in the business model.

WENDY’S TO CLOSE HUNDREDS OF US STORES NEXT YEAR

Jack in the Box has closed 72 underperforming locations so far. (iStock / iStock)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

In a recent development, the company announced the completion of the sale of Del Taco to Yadav Enterprises for approximately $119 million, which is part of its broader turnaround strategy. Currently, Jack in the Box operates around 2,200 restaurants across the U.S., primarily located in California, Texas, and Arizona.