Jack in the Box is taking bold action in 2025. The fast-food company said it will close 150 to 200 restaurants as it works to improve financial performance and retool its business model.
“Block Closure Program” Underway to Remove Underperforming Stores
The closures fall under Jack in the Box’s new “block closure program.” The company cites the targeted stores as “underperforming” and, in a majority of cases, more than a few decades old. A majority of these locations have struggled for years.
CEO Lance Tucker clarified that the closures are meant to “accelerate cash flow, pay down debt, and simplify the Jack in the Box story.”
The emphasis now is on enhancing core operations and laying the groundwork for future expansion.
80–120 Jack in the Box Locations to Shut Down by End of 2025
80 to 120 of the restaurants will close by the end of 2025, according to the company.
The remaining ones will close when their franchise agreements lapse. Jack in the Box highlighted that this plan is distinct from the company’s usual annual closings, which typically affect about 1% of stores per year. The objective, in leadership’s view, is to rid the system of weaker units and achieve consistent, positive net unit growth in the future.
Jack in the Box Is Reassessing Del Taco’s Future
Jack in the Box is also reassessing its Del Taco brand. It is now investigating a potential sale or other “strategic alternatives” for the chain, which it acquired in 2022.
The Del Taco brand, comprising around 600 stores, experienced a 3.6% decline in same-store sales in recent times. Jack in the Box restaurants, on the other hand, experienced a 4.4% decline. Company executives hope re-focusing their efforts could create a healthier overall portfolio.
Fast-Food Chains Facing a Difficult Year in 2025
Jack in the Box isn’t alone in having to make difficult decisions in 2025. TGI Fridays has reduced its US footprint to just 85 outlets. Red Robin is even planning to shut up to 70 sites. Inflation and higher expenses have bitten deep into the fast-food market. Numerous brands are compelled to rework their strategies if they are going to survive.
Lance Tucker’s Leadership: New CEO, New Direction for Jack in the Box
Jack in the Box’s new full-time CEO, Lance Tucker, is coming in fast. He officially became CEO at the end of March after serving as interim CEO after the departure of Darin Harris.
Tucker’s “JACK on Track” effort centers around creating sustainable growth. In addition to restaurant closures, it also involves technology investments and restaurant improvement. He plans to make Jack in the Box a better, more concentrated company going into 2026.
Jack in the Box Financial Forecast for 2025
In spite of the closures of its stores, Jack in the Box has projected operating earnings per share between $5.05 and $5.40 for its fiscal year 2025. This projection does not include the effect of the “JACK on Track” program yet. But the company does see a “low-to-mid-single digits” decrease in same-store sales versus last year.
Second-quarter final financial results will be reported in mid-May, providing better insight into how the company is doing.
A Fresh Start for Jack in the Box by 2026
With approximately 2,200 Jack in the Box locations operating today, the company retains a significant national presence.
By cutting back older, underperforming locations, management feels that they can establish a more profitable, competitive brand.
Even if losing as many as 200 restaurants hurts in the short term, the company is counting on it to mean stronger growth, improved margins, and a cleaner business model over the long term.
Shoppers can look for a fresher, more streamlined Jack in the Box by 2026.
