Jack in the Box announced plans to close up to 200 restaurants as part of its "JACK on Track" strategy to streamline operations and address approximately $300 million in debt. The new CEO, Lance Tucker, emphasized strengthening franchisee economics and focusing on stronger restaurant performance. The company is also exploring selling Del Taco, which it acquired for $585 million just three years ago, amidst challenges like rising wages and inflation affecting the fast-food industry. The closures aim to improve long-term growth and reinvestment opportunities.
We expect closing these restaurants will strengthen the overall long-term economics of our franchisees, free up dollars for reinvestment, and allow the system to focus on maximizing performance of our stronger restaurants.
The decision to sell stores as well as the Del Taco chain comes at a time when fast-food restaurants in general face a number of challenges, including higher wages in California, food cost inflation and, more recently, a pullback in spending by consumers in the face of economic uncertainty.
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