San Diego — Jack in the Box Inc. has unveiled a series of actions to improve long term financial performance across its restaurant system, including the closure of 150-200 underperforming Jack in the Box restaurants and, with the help of BofA Securities, possible strategic alternatives for its Del Taco brand, including a potential divestiture of the business.
“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” says Lance Tucker, who was named chief executive officer at Jack in the Box on March 31. “Our actions today focus on three main areas: addressing our balance sheet to accelerate cash flow and pay down debt, while preserving growth-oriented capital investments related to technology and restaurant reimage; closing underperforming restaurants to position ourselves for consistent net unit growth and competitive unit economics; and, an overall return to simplicity for the Jack in the Box business model and investor story.”
Jack in the Box will implement a block closure program, which is projected to result in the closure of approximately 150-200 underperforming restaurants — a majority of which have been in the system for over three decades. The program will consist of approximately 80-120 restaurant closures between now and December 31, with the remaining underperforming restaurants closing thereafter based upon respective franchise agreement termination dates.
Jack in the Box Inc., founded and headquartered in San Diego, is a restaurant company that operates and franchises Jack in the Box®, one of the nation’s largest hamburger chains with approximately 2,200 restaurants across 22 states, and Del Taco®, the second largest Mexican-American QSR chain by units in the U.S. with approximately 600 restaurants across 17 states. For more information, visit www.jackinthebox.com and www.deltaco.com.
SOURCE: Jack in the Box Inc.