On Tuesday, Jack in the Box revealed plans to eliminate 150–200 underperforming locations as part of their ambitious “JACK on Track” financial plan.
The CEO of the fast-food business, which is well-known for its sardonic mascot and Jumbo Jack, stated in a statement that the company’s main goals are debt repayment and cash flow acceleration.
About 2,200 Jack in the Box sites may be found in 22 states, mostly on the west coast, including several in Southern California.
The attempts to consolidate finances may have an impact on the survival of the 600-location taco business, Del Taco, which is owned by Jack in the Box.
Company representatives announced the start of a “strategic alternatives process for Del Taco” in an investor memo. Right now, Del Taco is the second-biggest quick-service Mexican American restaurant brand.
By the end of the year, a large number of Jack in the Box stores will close, and the remaining underperforming shops will close when their franchise agreements expire.
“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” said Jack in the Box CEO Lance Tucker, who started on March 31.
San Diego is the location of the company’s founding and headquarters.