Jack in the Box will close up to 200 underperforming restaurants, about 10% of its system, and explore a sale of its Del Taco brand as part of a “JACK on Track” plan to strengthen its balance sheet, reduce roughly $300 million in debt and position the company for consistent net unit growth. The program aims for 80–120 closures by the end of 2025, with the remainder to be completed over subsequent years. It suspends Del Taco guidance as the Mexican-inspired chain faces inflationary pressures and stiff competition. Same-store sales fell 4.4% at Jack in the Box and 3.6% at Del Taco in Q2, and the stock has plunged 57% over the past year.
Jack in the Box Inc., founded in 1951 and headquartered in San Diego, operates approximately 2,200 hamburger restaurants across 22 states, primarily on the US West Coast. The company acquired Del Taco in March 2022 for roughly $585 million. Del Taco, with approximately 600 units in 17 states, has struggled under rising commodity costs and intense competition from chains such as Taco Bell.
Financial Impact
- Debt reduction: The closures and real estate sales aim to generate cash to pay down an estimated $300 million in debt over the next two years.
- Dividend suspension: The company has discontinued its dividend to redeploy approximately $35 million toward debt reduction and share repurchases.
- Sales performance: In its pre-announced Q2, which ended April 13, same-store sales fell 4.4% at Jack in the Box and 3.6% at Del Taco.
Strategic Plan (“JACK on Track”)
Restaurant Closures
- Scope: 150–200 underperforming locations to be closed; 80–120 by December 31, 2025, the rest as franchise agreements expire.
- Unit growth outlook: Following the program, the company anticipates consistent, net positive unit growth, driven by stronger markets and whitespace opportunities, as detailed on investors.jackinthebox.com.
Del Taco Strategic Review
- Alternative process: Engaged Bofa Securities to evaluate options for Del Taco, including a potential divestiture, as its performance may not materially impact Jack in the Box’s bottom line.
- Guidance suspension: All Del Taco financial forecasts are suspended indefinitely as the review proceeds.
Capital Allocation & Technology
- Sell select owned real estate (≈170 sites leased to franchisees) to accelerate cash flow.
- Maintain growth-oriented investments in digital ordering, point-of-sale upgrades (with full roll-out by Q1 2026), and mobile app enhancements at investors.jackinthebox.com.
Market Reaction
Shares of JACK fell more than 6% in extended trading on news of the closures, dividend halt and Del Taco review. Over the past year, the stock has plunged 57%, reflecting investor concern over declining sales and heavy debt burdens.
Industry Context
Other fast-food operators report mixed results: McDonald’s flagged a sluggish start to 2025, Chipotle noted a spending slowdown, while Taco Bell forecasts an 8% sales rise driven by new menu items.
Что будет дальше
- Earnings call: Final Q2 2025 results and updated guidance scheduled for May 14, 2025.
- Closure timeline: Monitor quarterly updates on the block closure program and progress on any Del Taco divestiture.
- Operational focus: Emphasis on asset-light model, digital sales growth and selective reinvestment in high-performing markets.
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