After a 57% Stock Crash, Jack in the Box Is Throwing Out Egg Rolls, Tacos, and Dividends

Jack in the Box (the one stop shop for everything from breakfast to egg rolls) is finally ripping off the band-aid, and they’re not being gentle about it. The 74-year-old fast-food chain has announced a dramatic turnaround plan… cleverly branded as “JACK on Track”… that includes closing up to 200 restaurants, axing its dividend, selling off real estate, and possibly dumping Del Taco altogether. 

After a brutal 57% drop in stock price over the past year and declining sales across both brands, new CEO Lance Tucker is making it clear… the old Jack wasn’t cutting it, and it’s time for some serious financial triage.

Let’s start with the headline moves. Jack in the Box plans to close 150 to 200 underperforming restaurants, with 80 to 120 shuttering by the end of 2025. The goal is to improve unit economics and get back to positive net restaurant growth. And that’s just the beginning. 

On top of that, the greasy fast food restaurant is suspending its dividend immediately and redirecting those funds toward debt reduction and a modest $5 to $15 million in share repurchases. They’re also selling off some of their owned real estate and pressing pause on new company-owned restaurant development after 2025, though they’ll continue with existing restaurant reimaging projects and digital upgrades.

But the biggest twist in the plan might be the potential sale of Del Taco, the chain Jack bought just three years ago for $575 million in a move that was supposed to add Mexican flair to its portfolio. Instead, it’s been a never ending headache. Del Taco sales dropped 3.6% in the most recent quarter, and Tucker admitted the brand likely won’t “meaningfully contribute” to Jack’s bottom line moving forward. 

All of this is meant to help Jack in the Box pay off $300 million in debt over the next two years while refocusing on what it does best… running a simplified, asset-light model. The company expects adjusted EBITDA of $282 to $292 million in FY 2025 (excluding late-year actions), with operating EPS guidance of $5.05 to $5.40 and a 26% tax rate. Capital expenditures are tightening to $100 to $105 million, so you should expect new (and way better) long-term guidance once these initiatives settle in.

As for the stock, JACK is now trading just under $49, down more than half from its 12-month high and slipping another 6% after the restructuring news broke. 

While the market clearly isn’t sold yet, there’s a potential upside if the company can execute on its closures, unload Del Taco, and start showing growth again… especially in new markets where performance has been stronger. If you can reprogram your brain to think longterm (not many can), JACK is shaping up to be a high-risk, high-reward turnaround story.

Stocks.News has positions in Jack in the Box.