Jack in the Box has been around since 1951, with its most significant growth occurring in the 1970s. It’s seen some rough times, like the E. coli outbreak in the early 90s that sickened over 700 people and, tragically, resulted in the death of four children.
Since then, Jack in the Box has experienced the ups and downs that all businesses endure. However, there’s a sign of trouble with the announcement of the plan to close up to 200 locations between now and next year.
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Jack in the Box has around 2,200 locations spread throughout the United States. In 2022, Jack in the Box purchased Del Taco in 2022, which has nearly 600 US locations.
The majority of Jack in the Box locations are on the West Coast. California leads the country in having the most Jack in the Box locations, with 942 locations in the Golden State alone.
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On April 25th, Jack in the Box announced its plan to close 150-200 of its underperforming locations. Of the 200 or so planned closures, around 80-120 are slated to close before the end of this year.
We don’t know all of the closures, but a few have been announced (and we’ll get to them soon).
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Lance Tucker, CEO of Jack in the Box, has this to say about the planned closures: “Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay down debt…closing underperforming restaurants to position ourselves for consistent net unit growth…and, an overall return to simplicity for the Jack in the Box business model and investor story.”
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Jack in the Box unveiled its “Jack on Track” program at the same time it announced the closures of 150-200 locations.
The program involves changes to investment strategies, the sale of real estate, and other business strategies. Specifically, the plan notes that Jack in the Box will “significantly reduce its spend on company-owned new unit restaurant development beginning in 2026”, but that it will continue working on improvements of existing restaurants.
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A major part of the JACK on Track program is the possibility of selling the Del Taco locations it just acquired in 2022. The acquisition cost Jack in the Box $585 million, and with Del Taco sales struggling, it makes sense that selling it is likely a top priority among Jack in the Box’s restructuring plan.
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According to Tucker (Jack in the Box CEO), regarding the potential sale of Del Taco: “We’ve had a lot of reach-out.” Tucker goes on to say, “We haven’t even gone to official marketing on the thing. We have had significant reach-out and interest in the brand.”
It seems like Tucker is confident in the likelihood of a successful sale, so we’ll keep our eye on this one…
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As is the case for most chains when the decision comes to shutter locations, sales and revenue play a large role in Jack in the Box’s planned closures.
According to the Q2 2025 earnings report, same-store sales were at a 4.4% decline for Jack in the Box, while Del Taco also experienced a decline of 3.6%.
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Margins have also been impacted by several factors that have become obvious over the past couple of years.
The earnings report cites lower sales and continued inflation, higher operating costs, and increased costs for wages and utilities as driving factors for reduced revenue. The report notes that some of those costs have been offset by price increases, of which consumers have already become painfully aware…
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We don’t have many official closure announcements yet, but a couple of locations in Washington have set closure dates.
The Jack in the Box location in Tukwila, Washington (around 30 minutes outside of Seattle) will close its doors by the beginning of September. The closure will result in 14 job losses.
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Another location in Seattle will also close come September. The Jack in the Box on University Way Northeast in Seattle, Washington, is another one of the confirmed closures, according to a company spokesman. The closure in Seattle will impact 12 jobs.
Given that 80-120 of the planned closures are planned to happen by the end of the year, it’s safe to assume we’ll see many more official closure announcements soon. (I’d imagine many will be in California, given that over 40% of the total locations are located there.)
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Jack in the Box has a diverse menu, including burgers, chicken, tacos, shakes, and a breakfast menu. Because of this diversity, it also has a lot of competition, including In-N-Out Burger, KFC, Wendy’s, Burger King, Arby’s, and Freddy’s Frozen Custard & Steakburgers.
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We’ll likely see more news of Jack in the Box closures soon (80-120 is a lot of stores to close between now and December 31!).
What do you anticipate will happen to Jack in the Box? Do you anticipate it will become phased out by more popular restaurants in the coming years? Share your favorite fast food restaurants in the comments, while you’re at it!
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