A Bell taco with canteen -style architecture is closing in South Scottsdale, Arizona. Fox 10, Brian Webb of Phoenix, has more.
Jack in the Box announced that he plans to close from 150 to 200 of his restaurants, since he seeks to boost the financial performance of the fast food company.
The company said Wednesday that restaurants in the “Planned Block Closing Program” were those that had a lower performance and, in many cases, of several decades of age.
“Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay the debt, while preserving capital investments oriented to growth related to technology and the reimmission of restaurants; closure of low -performance restaurants to position themselves for the growth of the net unit and the economy of the competitive unit;
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A building and restaurant firm of Jack in the Box. (Melinda Crawford/Education Images/Universal Images Group through Getty Images/Getty Images)
Approximately 80 to 120 of the total restaurants planning to close under the program will close its doors forever before the end of the year, according to Jack in the Box.
The rest of the low performance restaurants in the cutting block will stop the operations “in the respective termination dates of the franchise agreement,” said the company.
“This program does not include 1.5% to 2.0% of the closures of the system unit for fiscal year 2025, and a continuous annual closing rate from then on approximately 1% of the system units that begin in fiscal year 2026,” Jack said in the box.
The company anticipates the “growth of the positive and positive net unit” after closing 150 to 200 low performance locations.
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| Heart | Security | Last | Change | Change % |
|---|---|---|---|---|
| Jacobo | Jack in the Box Inc. | 23.96 | -1.46 | -5.72% |
The block closure plan is part of the “Jack On Track” initiative presented by Jack in the Box.
In addition to restaurant closures, Jack in the Box said the strategy includes other measures aimed at helping the company see “sustainable growth” in the coming years through improvements in their financial performance and balance.
Jack in the Box is analyzing a possible divestment and other “strategic alternatives” for the taco brand too, according to its announcement. He has owned the chain since 2022.
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A Taco restaurant in Fairfield, California. (Justin Sullivan / Getty images / getty images)
Jack in the current store count of the box includes approximately 2,200 homonymous restaurants and 600 restaurants in the taco.
The company said that preliminary sales in the same store in the second store for Jack in the box recorded a 4.4%decrease. Del Taco experienced a decrease of 3.6%.
The company is scheduled to publish its final financial results in the second quarter in mid -May.
Winnemucca, Nevada – August 5, 2020: Exterior view of the Jack In the Box Chain Fast Food Restaurant (Istock / Istock)
For its fiscal year 2025, Jack in the Box predicted on Wednesday that the company will see operational profits of $ 5.05 to $ 5.40, not including any effect of its Jack On Track initiative.
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He also foresaw his homonym business that had a decrease in “low digits to media” in sales of the same store compared to the previous fiscal year.
Tucker became Jack in the permanent CEO of the box at the end of March. He had been leading the company interim since the former executive director, Darin Harris, left the company for a job “outside the restaurant industry” at the end of February.
