As part of a wider plan to improve long-term money, San Diego-based fast food chain Jack in the Box announced intentions this week to shut up to 200 sites.
In response to inflationary pressures and high labour costs, the network that sells burgers, meat sandwiches, and curly fries is the most recent to reduce its footprint.
Popular sites like Rubio’s Coastal Grill and Shake Shack, Red Lobster, and Rubio’s Coastal Grill all shut down last year as a result of inflation-driven consumer spending decline.
According to an a  news release, Jack in the Box unveiled its” Jack on Track” program on Wednesday that aims to increase cash flow and reduce its debts.
Additionally, the business stated that it is considering acquiring Del Taco, a Mexican American fast food franchise, in 2022.
According to the company, between 80 and 120 Jack in the Box franchises will close by the end of the year, and more failing ones will close in 2026. The company will shut down as many as 200 shops overall, the bulk of which have been operational for more than 30 years.
It did not specify the sites that would be closing.
In a simplified and asset-light business model, Chief Executive Lance Tucker stated in a speech that” Jack in the Box operates at its best and maximizes investor profit potential. According to him, the Jack on Track economic plan will provide the Jack in the Box business concept and investment history back to clarity.
The firm said it will use the sale of real estate to lower its debt load. The company was facing full present responsibilities of more than$ 426 million as of January.
Additionally, it may significantly reduce the cost of new restaurant construction in 2026 while continuing to make the desired changes to its existing restaurant base.
According to initial economic benefits, Jack in the Box opened five areas and closed 12 in its macroeconomic next quarter that ended on April 13. It added six Del Taco places and locked down four more in the same time.
Jack in the Box’s quarter-to-date sales were down 4.4 %, and Del Taco’s sales were down 3.6 %. According to Tucker, the initial quarter ended on January 19 was$ 33.7 million, over from$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
The company runs about 2,200 Jack in the Box areas in 22 states, with the West Coast being the most popular one. Los Angeles has more than 40 areas, and the first one opened in San Diego in 1951.
On Thursday, Jack in the Box stock was down nearly 6 %. Shares ended the day at$ 23.96 and have fallen by 41 % year over year.
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