Jack in the Box Plans to Close Up to 200 Locations, Mulls Over Potential Sale of Del Taco Brand

SAN DIEGO – San Diego-headquartered Jack in the Box stated recently that they plan to shut down somewhere from 150 to 200 under-performing eateries and intend to consider putting up for sale the Del Taco chain.

The corporation's "Jack on Track" initiative aimed at enhancing fiscal outcomes will encompass approximately 80 to 120 store closings by the close of 2025. The statement did not specify which outlets would cease operations; however, it mentioned that the majority have been part of the network for more than thirty years.

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The company Also suggested it would "substantially decrease" expenditures related to developing new restaurants beginning the following year and planned to examine "strategic options for the Del Taco brand," which could include potentially selling off the business. In 2022, Jack in the Box purchased Del Taco for approximately $585 million.

Lance Tucker, who was recently appointed as CEO, stated in his remarks, "Our current efforts revolve around three key points: improving our financial standing to boost cash flow and reduce debt, all while maintaining investments aimed at technological advancements and enhancing restaurant appearances; shutting down underachieving locations to set us up for steady expansion of units with strong economic performance per store; and simplifying both the operational framework and investment narrative of the Jack in the Box brand."

The "Jack on Track" initiative encompasses a wide array of measures aimed at enhancing the brand's long-term fiscal health throughout its network of eateries, as stated in their press statement. This strategic approach aims to fortify the corporation’s financial standing and underscore its dedication to maintaining a lean-asset operational framework—strategies collectively poised to drive robust expansion for Jack in the Box over the next several years.

Part of this strategy involves having BofA Securities help with examining various strategic options for the Del Taco brand, which may include potentially selling off the entire operation.

"As CEO so far, I've swiftly collaborated with our teams and determined that Jack in the Box performs optimally and maximizes shareholder returns through a streamlined, asset-light business approach," Tucker stated. (With CNS report)