An old -fashioned taco bell with an architecture of Cantina style firm in the south of Scottsdale, in Ariz. Fox 10 Brian Webb of Phoenix has more.
Jack In The Box has announced that it planned to close 150 to 200 of its restaurants while seeking to stimulate the financial performance of the fast food company.
The company said on Wednesday that the restaurants of the “block closing program” planned were those which were “underperforming” and, in many cases, several decades.
“Our actions are concentrated today in three main areas: to approach our assessment to speed up cash flows and reimburse debt, while preserving capital investments focused on growth -related growth and restaurants revolving;
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A Jack in the Box restaurant building and sign. (Melinda Crawford / Education Images / Universal Images Group via Getty Images / Getty Images)
According to Jack in the box, around 80 to 120 of the total restaurants he plans to close in the program closes their doors before the end of the year.
The rest of the sub-performative restaurants on the cutting block will prevent operations “on dismissal dates of the respective franchise agreement”, said the company.
“This program does not include 1.5% expected at 2.0% of system unit closings for the financial year 2025, and an annual closure rate in progress thereafter of approximately 1% of the system units starting at the 2026 fiscal year,” said Jack in the box.
The company provides for “coherent and positive growth of the net unit” after the closing of 150 to 200 sub-performative locations.
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| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| JACK | Jack in the box Inc. | 23.96 | -1.46 | -5.72% |
The block closing plan is part of the “Jack on Track” initiative that Jack In the Box has unveiled.
In addition to restaurant closings, Jack In the Box said that the strategy includes other measures to help the company see “sustainable growth” in the coming years thanks to improvements in its financial performance and its balance sheet.
Jack in the box envisages possible disinvestment and other “strategic alternatives” for the Del Taco brand, according to its announcement. He has had the chain since 2022.
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A DEL TACO restaurant in Fairfield, California. (Justin Sullivan / Getty Images / Getty Images)
The current number of Jack in the Box stores includes around 2,200 homonymous restaurants and 600 Del Taco restaurants.
The company said that preliminary sales in the second quarter at store for Jack in the box recorded a 4.4%drop. Del Taco experienced a decrease of 3.6%.
The company should publish its latest financial results in the second quarter in mid-May.
Winnemucca, Nevada – August 5, 2020: Outdoor view of the Jack in the fast food restaurant restaurant (Istock / Istock)
For its 2025 exercise, Jack In the Box planned for the company on Wednesday that the company will see the operating profit per share from $ 5.05 to $ 5.40, not to mention the effects of its Jack on Track initiative.
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He also provided that his homonymous activity having a decrease in “low figures in tiny” of sales with comparable stores compared to the previous financial year.
Tucker became Jack in the permanent CEO of the box at the end of March. He had run the provisional company since the former managing director, Darin Harris, left the company for a job “outside the catering industry” at the end of February.
