Jack in the Box is hitting the brakes on hundreds of its restaurants as the fast-food chain faces one of its steepest downturns in years. With sales plunging even lower than during the height of the COVID-19 pandemic, the company has announced plans to close 150 up to 200 underperforming locations across the country.
Jack in the Box cuts back as same-store sales hit record lows
Jack in the Box is facing a tough stretch. In its latest earnings report, the San Diego-based fast-food chain revealed a same-store sales decline of more than seven percent over the last quarter—an even steeper drop than during the height of the pandemic. The company’s stock has taken a hit as well, now sitting 57 percent lower than it was a year ago.
The numbers mark a troubling turn for the brand as it works to regain stability amid ongoing economic uncertainty. In the third quarter of 2025 alone, 21 locations were closed. Of those, 13 were part of the company’s broader turnaround effort dubbed the “Jack on Track” initiative, which launched this spring to address long-term financial challenges. As part of the plan, Jack in the Box aims to close between 150 and 200 underperforming restaurants, with at least 80 expected to shut their doors by year’s end.
Which Jack in the Box locations are closing?
Details remain scarce. So far, the company hasn’t revealed which specific restaurants have been shut down or flagged as “underperforming.” What is clear, however, is that Texas ranks as the chain’s second-largest market nationwide, with Houston boasting the highest number of Jack in the Box outlets anywhere in the country.
In Dallas, which holds the fifth spot for total Jack in the Box locations, the Dallas Morning News noted that “dozens of locations” sit in close proximity to one another—making them potential targets in the company’s effort to streamline operations. A similar pattern exists in Houston, though being close together doesn’t automatically mean a store will be closed.
What’s driving the sales slump?
During the latest earnings call, Jack in the Box CEO Lance Tucker revealed a notable factor behind the sales decline: a drop in visits from the chain’s Hispanic customer base. Tucker explained that the brand is “over-indexed” with Hispanic guests—meaning it attracts a higher proportion of Hispanic diners compared to its competitors. The challenge, however, seems to stem from two main issues:
First, restaurant spending overall has decreased across the board, as numerous reports have shown. Second, as Restaurant Business News highlighted in June, food and beverage leaders note that eateries in predominantly Hispanic neighborhoods are feeling extra pressure amid President Donald Trump’s highly publicized immigration crackdowns.
Data shared with RBN revealed that restaurant traffic in ZIP codes where at least 40 percent of residents are of Mexican origin weakened just before the 2024 election—and hasn’t bounced back since. Executives from companies like Wingstop and Constellation Brands, which owns Corona and Modelo, confirmed they’ve seen similar pullbacks within the same demographic.
“Seventy-five percent of Hispanic consumers are going to restaurants less,” said Bill Newlands, CEO of Constellation Brands. “There’s less social occasions.”
How Jack in the Box is fighting back
To turn things around, Jack in the Box is rolling out several key strategies aimed at boosting sales and reconnecting with customers. The company is introducing new menu items and value deals like the “Munchies Under $4” menu to appeal to budget-conscious diners. It’s also investing heavily in digital upgrades, including a revamped mobile app and new point-of-sale systems designed to streamline operations and personalize customer offers. On the ground, Jack in the Box is modernizing hundreds of its restaurants to create a fresher, more inviting experience. At the same time, the chain’s decision to close underperforming locations is part of a broader plan to reduce debt and sharpen its focus on core markets.
Source: Chron