Jack in the Box announced plans Tuesday to close 150 to 200 underperforming stores as part of an aggressive financial plan called “JACK on Track.”
The company’s CEO said that the fast-food chain, which is known for its Jumbo Jack and sarcastic mascot, is focused on accelerating cash flow and paying down debt.
Jack in the Box operates some 2,200 stores across 22 states, primarily on the West Coast, including many locations in Southern California.
Jack in the Box, Inc, also owns Del Taco, another fast-food chain headquartered in California. The company’s plans to streamline finances could impact the future of the taco chain, which operates some 600 locations.
In its press release, Jack in the Box said the company is exploring “a possible divestiture” of Del Taco, which is currently the second-largest Mexican-American quick-service chain.
Many of the Jack in the Box closures are expected by the end of the year, with remaining underperforming locations closing when franchise agreements terminate.
Jack in the Box has not yet specified which of its restaurants would be closing.
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