3 Reasons We're Worried About Jack In The Box

Fans of Jack in the Box tacos and curly fries may have noticed that the 24-hour chain occupies an interesting niche in the fast food landscape. Nearly as old as global behemoths like McDonald's and KFC, Jack in the Box celebrates its 75th year in 2026. The brand remains relatively fringe, enjoying its edgy image and even leaning into it with memorable advertisements (like the one with 30 tacos). Still, the chain is facing some serious challenges. While there was some recent buzz around the return of the much-loved Chicken Supreme Sandwich, a vintage favorite from the 1980s, simply bringing back discontinued Jack in the Box items isn't going to be enough to get the struggling company out of the woods. 

Menu changes and capitalizing on nostalgia aside, the fast food chain is in significant debt and has seen consistently diminishing sales and profits recently. Its brand image, despite the eponymous mascot's memorable antics over the years, is shaky, and customer loyalty in the casual dining industry isn't as easy to come by. What remains to be seen is whether the company's JACK on Track plan to improve its financial performance will save it. We have our fingers crossed.

Jack in the Box has experienced ups and downs in the three-quarters of a century that it has been around, and 2025 was a particularly difficult year, marked by rising prices and reduced customer traffic in fast food restaurants, following a significant blow to the industry during the COVID-19 pandemic. Chains, in particular, are having a hard time, and while some, like Taco Bell, are innovating and bucking the trend, others, such as TGI Friday's and Red Lobster, have filed for bankruptcy. Even old favorites like Bertucci's, an Italian restaurant chain that might not survive 2026, are attempting to reinvent themselves but have a tough road ahead.

The lackluster performance that Jack in the Box experienced in 2025 can be seen in falling sales and profit figures, with the company closing the year almost $1.7 billion in debt. What is perhaps even more worrying is that the fast food company is only in the initial stages of overhauling its business to turn things around. Restructuring and streamlining a large business takes time, and results take even longer to show, meaning Jack in the Box cannot expect a turnaround in the near future. The situation is exacerbated by shrinking margins due to rising costs. Plus, the company is not expecting any significant growth in sales in 2026, as it will continue working on fixing internal issues.

Despite 75 years in the business, Jack in the Box hasn't built the kind of loyal customer base that can help it weather a storm. Customer loyalty is fickle, with many diners gravitating towards brands that offer the best value for money. It doesn't help that, over the years, Jack in the Box has given people numerous reasons to dislike it, including some feeling that it doesn't offer good value.

However, its edgy branding did appeal to some and gave the chain a more "adult" image compared to many other fast food chains. Over time, this didn't translate to higher sales. Plus, the company's constant changes to the menu also brought in an element of uncertainty. At one point, Jack in the Box made being open all night its distinguishing strength. This just isn't enough to earn customer loyalty, especially when competition is tough.

While there are many little-known fun facts about Jack in the Box, a not-so-fun fact is that the chain never really got a grip on the East Coast. Both Jack in the Box and its former subsidiary, Del Taco, have remained concentrated along the West Coast. The chain hasn't really consolidated its footprint across the country, making the brand more of a niche than a national icon.

Perhaps the most obvious sign that Jack in the Box is undergoing unprecedented hardships is the announcement that the chain will be closing approximately 200 outlets. Losing what works out to be about 10% of its footprint is in stark contrast to the company's 2024 forecast of opening 90 outlets per year by 2027. Now, up to 120 underperforming Jack in the Box locations are expected to close in 2025, with the rest scheduled to shutter in 2026. The objective is streamlining cash flow and reducing the company's ballooning debt. The fast food chain is also working on updating its remaining stores, which requires significant time and investment and can be a risky endeavor if the updates don't have the required positive effect on the bottom line.

Another drastic measure taken by the company is its sale of Del Taco. Jack in the Box purchased the Mexican-inspired fast food chain in 2022 in a deal valued at about $575 million. In 2025, it sold Del Taco for $115 million, another sign of desperate times. Del Taco is the country's second-largest Mexican-inspired fast food chain after Taco Bell, with over 500 outlets. However, it also faced a dip in sales, even as its main competitor posted robust growth. While divesting from Del Taco is meant to help Jack in the Box focus on its core brand, it also signifies a significant drop in the company's overall presence.