This brand has been a reference among burger chains in the United States for years. Although it is not as international as McDonald's, it has a loyal customer base and hundreds of locations in different states. However, in 2025 significant changes are coming that will affect its presence in the country.
Jack in the Box has announced the closure of up to 200 branches due to poor economic performance. Many of these stores have been in operation for more than 30 years, but they are no longer profitable. This decision is part of a strategy aimed at stabilizing its accounts and regaining ground in the fast-food market.
A Necessary Shift to Survive
Jack in the Box plans to close between 80 and 120 locations before the end of the year. The rest will gradually reduce their activity until their definitive closure, as part of a "block closure program." According to reports, the goal is to keep, starting in 2026, an annual closure rate of 1%.
The figures support this tough measure: during the second quarter of the year, the company recorded a 4.4% drop in sales. Additionally, the price of its shares decreased by 57%, which has caused great concern among investors.
"Jack in the Box has deviated from some of the essential characteristics. Those have made it a successful value generator for shareholders in the past," said its CEO, Lance Tucker, in a conference.
The executive also explained that the plan is based on three key pillars. "Our actions focus on optimizing our balance sheet to accelerate cash flow, closing underperforming restaurants, and returning to the simplicity of the business model." This strategy aims to position the firm for more solid and profitable growth.
Internal Restructuring and New Approaches
In addition to closing locations, the company plans to sell its other restaurant brand: Del Taco. This brand has also seen its sales decline, with a 3.6% drop in the latest report. Divesting this division would allow Jack in the Box to focus on strengthening its main business.
For now, the company has not specified which exact locations will be affected by the closures, although more information is expected to be known in August. Tucker added that "it's time to return to those principles" that once made Jack in the Box strong.
With these moves, McDonald's and other competing chains could see their position in the market strengthened. The restructuring of Jack in the Box marks the end of an era for its followers, but also the attempt at a new beginning.