The West Coast-based fast food chain Jack in the Box, one of the 7 fast food chains that are completely different from when they first opened decades ago, made public on April 23, 2025 that it plans to close up to 200 of its 2,200 restaurants. These stores, targeted as “underperforming,” (via CNN), are being sacrificed in the name of storing up the chain’s cash flow and helping to pay off $300 million in company debt. In 2025 alone, fans could see up to 120 locations close, with the rest slated for closure in subsequent years.
What’s more, Jack in the Box is also looking into the possibility of selling its taco brand, Del Taco, as it posted disappointing sales in its second quarter of 2025. The 3.6 percent dip in revenue is proving too low for Jack in the Box to continue to keep the taco brand, especially since Jack itself saw a 4.4 percent drop in the same quarter, adding to a nearly 60 total percent drop in stock price from last year. While nothing is set in stone at the time of publication, things seem to be moving in a rather tumultuous direction for the fast food chain — Del Taco fans may soon notice major changes, if its parent company decides to sell it off in efforts to avoid further financial troubles.
Why Jack in the Box is on the struggle bus
2025 has been a tough year so far for restaurants overall, with casual sit-down restaurant chain Bar Louie filing for bankruptcy in late March and Hooters likewise announcing it would be entering Chapter 11 bankruptcy in early April. Many fast food chains are trying to slip under the radar with discreet store closures, so it isn’t a total surprise that Jack in the Box has plans to shuttering doors. The main reason this burger spot, as well as so many others, are closing locations? In a trend that has been on the rise since the previous year, consumers are cutting back on how much they spend to dine out, and it’s a trend that looks like it will last well into the summer months, when eating out is usually at its peak. This major flux in consumer spending habits may cause long-lasting changes that chains on shakier ground may not be able to recover from.
The sale of Del Taco, which Jack in the Box has floated as very likely, is due not only to the consumer cut-back trend, but also stiff competition from rivals like Taco Bell. Whereas other fast food chains are stymied by sluggish sales, Taco Bell is seemingly aloof to any struggles, remaining an affordable fan-favorite. With the addition of new menu options like the value-friendly Luxe Cravings boxes, it is predicting an increase in sales by nearly 10 percent — an upward trend that Del Taco, and its owner Jack in the Box, has not seen for quite some time.
