Jack in the Box, major fast-food chain, closes hundreds of restaurants across the U.S.

The fast food industry was a disaster in 2024, with several chains closing hundreds of locations and even going so far as to seek bankruptcy protection. 2025 is looking no different, with numerous fast food chains announcing more closure of stores this year.

Jack in the Box is added to the many companies that are choosing to close locations to help improve their business. Hoping to achieve a better long-term financial performance, Jack in the Box expects to close as many as 200 “underperforming” restaurants.

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Jack in the Box closes stores across America in 2025

Jack in the Box, a well-known fast-food hamburger chain, is the latest high profile company to announce major closings. Back in April, the company made the announcement that it planned to close to 150 to 200 of its underperforming restaurants, some of which have been in business for more than 30 years. The company expects to close about 80 to 120 locations before December 31, 2025.

Jack in the Box intends to close about 10% of restaurants, and is considering selling its Del Taco brand as part of restructuring due to cutting consumer spending.

The closures are part of the company's strategy to restore its financial position, and increase cash flow and reduce debt. CEO Lance Tucker said the goal is to work down $300M in debt over the next 24 months, and produce steady, positive growth.

Also, the company is looking at strategic alternatives for Del Taco, which it bought three years ago. But run-in challenges, due in part to inflation, and competition from recognizable players like Taco Bell. Tucker said that Del Taco was unlikely to materially contribute to Jack in the Box's financial results in the next few years, and that selling the brand would be a reasonable consideration.

In Jack in the Box's earnings preview, it reported a 3.6% drop in Del Taco's sales, and did not provide any further outlook as they are looking at a sale. In the meantime, Jack in the Box declined by 4.4% in sales for the 2Q25.

The company's difficulties can be seen in its stock price. Over the past year, the price has declined 57% and on Thursday, its stock was down nearly 7% in premarket trading.

Other fast-food chains are also experiencing difficulties but are not experiencing them as significantly. McDonald's announced a slow start to the year, and Chipotle announced it is seeing a recent slowdown of consumer spending. Taco Bell expects an 8% increase in sales based on new menu items trending in their favor.