Jack in the Box Inc. Plans Closures, More

Jack in the Box will close as many as 120 underperforming restaurants by year’s end—and up to 200 overall—as it works to accelerate cash flow and improve its long-term financial performance.

The brand’s “Jack on Track Plan” further includes an evaluation of “strategic alternatives” for Del Taco, which could possibly include a divestiture of the business.

Lance Tucker, Jack in the Box CEO since March 31, says in a press release that the actions focus on three 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.”

Starting next year, Jack in the Box expects to significantly reduce its spend on company-owned new unit restaurant development. However, it says it will continue to carry out planned restaurant reimages.