Jack in the Box is exploring a sale of Del Taco after three years of ownership.
Jack in the Box Inc. has unveiled a new business strategy under its new CEO.
The quick-serve restaurant company has introduced its “Jack on Track” plan, which includes closing 150 to 200 underperforming restaurants, the potential sale of its Del Taco brand, and prioritizing paying down its debt.
The company said the moves would “improve long-term financial performance across its restaurant system, strengthen its balance sheet, and demonstrate its commitment to running an asset-light business model.”
“Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay down debt, while preserving growth-oriented capital investments related to technology and restaurant reimage; closing underperforming restaurants to position ourselves for consistent net unit growth and competitive unit economics; and, an overall return to simplicity for the Jack in the Box business model and investor story,” said Lance Tucker, who took the reins as CEO on March 31.
The chain said it will implement a “block closure” under which it will close 80 to 120 restaurants between now and the end of the year, with the remaining locations closing in 2026 based on the respective franchise agreement termination dates.
Beginning in 2026, Jack in the Box plans to “significantly” reduce its spend on company-owned new unit restaurant development, but will continue with planned improvements and reimages of its current restaurant base. For the current year, it expects 35 to 40 gross restaurant openings.
https://chainstoreage.com/jack-box-close-underperforming-stores-eyes-sale-del-taco