Jack in the Box, a fast-food chain that’s been around for 74 years and is famous for its fun and unusual branding, shocked many people by announcing it will close between 150 and 200 stores that aren’t doing well across the country. This news came out quickly and affected communities where these restaurants had been important local spots for many years. The decision shows how the company is changing direction because of tough economic problems.
A Tough Time for the Company
Jack in the Box faced big problems in its latest financial report for the fourth quarter of the year. Sales at stores open for at least a year dropped by 7.4%, which was the biggest decline in a long time. The company’s debt grew to $1.7 billion. Costs for things like beef went up a lot because of inflation, and labor costs also rose faster than the money coming in from sales. Profits at the restaurant level fell, and the company lost some of its share of the fast-food market.
These issues forced leaders to make hard choices. The fast-food business is getting smaller for them as customers spend less. High costs and low sales made it clear that some changes were needed right away.
Reasons Behind the Store Closures
The company is closing stores as part of a plan called “Jack on Track.” It will shut down 80 to 120 locations by December 31, 2025, and more after that when franchise contracts end. These closures focus on older stores in markets that aren’t performing well.
Inflation hurt their profits by raising prices for food and other supplies. Many customers, especially those with low incomes, started visiting less because they felt the pinch from higher prices everywhere. Families chose to cook at home or buy groceries instead of eating out. This change hit Jack in the Box hard since those budget-conscious diners are their main group.
Problems from Buying and Selling Del Taco
Jack in the Box made a big mistake with its purchase of Del Taco. In March 2022, they bought the chain for $585 million. But just a couple of years later, they sold it for only $115 million. That meant a huge loss of $470 million.
Selling Del Taco freed up some money and attention for the main business. However, it showed that mixing the two companies didn’t work out. Leaders spent too much time on the acquisition instead of fixing issues at their original restaurants. This setback made their financial troubles even worse.
Effects on Jobs and Rising Costs
Closing these stores means many workers will lose their jobs. Most of the affected locations are run by franchise owners, not the company directly. This adds to problems in a job market where it’s already hard to find and keep employees.
In California, a new state law requires fast-food workers to earn at least $20 an hour. This raised costs even more for the company. Fewer customers came in, and expenses kept going up. Older stores couldn’t keep up with these changes and stay profitable.
Plans for the Future
Company leaders call 2026 a “rebuilding year.” They plan to focus on a smaller group of about 2,200 stores that work better together. The goals include better day-to-day operations, steady sales, and higher profits. They want to offer menus with good value and find ways to cut waste and improve efficiency.
Jack in the Box isn’t alone in these struggles. Other fast-food chains face the same issues with fewer customers and higher costs. Many are fighting back with cheaper deals and updates to their stores and technology.
This round of closures ends a long chapter for some beloved neighborhood spots. The company’s stock price has gone up and down as investors worry about the debt and whether the comeback plan will succeed. As inflation makes fast food less affordable for some, chains like Jack in the Box must adapt to win back customers. Their future depends on smart choices, like selling off weak assets, bringing back loyal fans, and changing with the times in a tough industry.
Sources:
“Jack in the Box posts worst sales quarter in years, again.” Restaurant Dive, 19 Nov 2025.
“Jack in the Box to close 200 restaurants as it fights to survive.” Las Vegas Review-Journal, 16 Dec 2025.
“Jack in the Box sells Del Taco to Yadav for $115M.” Restaurant Dive, 15 Oct 2025.