Popular American fast food chain Jack in the Box has shuttered dozens of restaurants this year as part of a significant restructuring effort, with the possibility of more closures in the final days of 2025.
Major Restructuring Plan Underway
Earlier this year, the burger franchise announced its "Jack on Track" plan, a strategy designed to improve the company's financial health. A key component of this plan involved the permanent closure of between 150 and 200 underperforming restaurants across the United States.
In April 2025, the company provided a more immediate target, stating it would close between 80 and 120 stores by 31 December 2025. The brand has made substantial progress towards this goal, having already closed 71 locations since that announcement.
More Closures Could Be Imminent
However, with the year-end deadline fast approaching, the chain has not yet reached the lower end of its target range. This means more restaurants could close their doors within the next few days as the company pushes to complete this phase of its restructuring.
At the time of the April announcement, Jack in the Box operated approximately 2,200 locations across 22 states, with a heavy concentration on the West Coast. California alone was home to 942 restaurants, accounting for a staggering 43 percent of its total footprint.
CEO Focuses on a "Simplified and Asset-Light" Model
In a statement released in April, Chief Executive Officer Lance Tucker explained the rationale behind the drastic moves. "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 maximises shareholder return potential, within a simplified and asset-light business model," Tucker said.
The "Jack on Track" plan focuses on three main areas: addressing the company's balance sheet to accelerate cash flow and pay down debt, closing underperforming restaurants to enable future growth, and returning to a simpler overall business model. The franchise also aims to pay off $300 million in debt over the next two years through the proceeds from these location closures.
The company stated that once the closure programme is finished, it expects to deliver consistent, positive net unit growth, aided by strong performance in new markets.
Jack in the Box is not alone in facing such challenges. Other major retail chains, including department store giant Macy's, have also announced significant closure plans for 2025.
