The Struggling Fast Food Chain That's Closing Up To 200 Restaurants

For a few fast food consumers out there, Jack in the Box is a favorite. The popular chain does a lot of late-night business with often inebriated customers, similar to another stereotypically great place for partiers, White Castle. Unfortunately, this niche market hasn't been enough to keep the business healthy, and potentially hundreds of closures are imminent.

Jack in the Box recently announced a revitalization plan that includes 150 to 200 store closures. The majority of these locations have been open for over 30 years. Unfortunately for 80 to 120 of these stores, the final day of business will come before the end of 2025. The remaining underperforming restaurants are slated to close when their franchise agreements expire.

Jack in the Box likely wouldn't close any stores if it weren't the most salient business move, and the chain has faced serious pressures for a while. At the end of 2025, it reported a 7.4% decrease in same-store sales and a 6.6% drop in revenue year over year. Coupled with the trend of Americans eating out less in general, shuttering weak sales performers was likely necessary.

Jack in the Box's difficulties with retaining customers stems at least in part from strong economic headwinds that weigh down the entire industry. It's certainly not from lack of trying. Jack in the Box has one of the best fast food value menus on the market, which should appeal to lower-income customers and fast food aficionados alike. There aren't many places where you can get both a cheeseburger and a taco. Jack in the Box also has a secret ingredient to boost the flavor of some of its most popular products. It's one of the top fast food restaurants that uses MSG, a sodium-free savory flavor enhancer that it adds to sauces, chicken, and tacos.

Despite these appealing factors, Jack in the Box is still struggling. It recently sold Del Taco for $115 million, a fraction of its purchase price four years earlier. And this is not the first time it's done something like this. Jack in the Box is the fast food restaurant that once owned Qdoba, which it sold in 2018 for $305 million to pay back debts. Hopefully, this unique chain can find some financial stability at long last.