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Jack in the Box has reported a net loss of $80.7 million for the fiscal year ending in September, as rising beef prices, declining sales, and mounting debt continue to weigh on the fast-food chain.

The company also recorded a 7.4% drop in sales during the fourth quarter of fiscal 2025, marking the second consecutive quarter of significant decline.

In response, the chain is accelerating its restaurant closure program. Earlier this year, Jack in the Box announced plans to shutter 150 to 200 underperforming locations by 2026, including 80 to 120 closures by the end of 2025.

As of now, the company has closed 72 restaurants, following 12 closures in May, 13 more by August, and 47 additional locations reported in November, Yahoo reported.

The closures aim to cut costs, improve revenue, and position the company for more consistent growth.

CEO Lance Tucker highlighted the focus on streamlining 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," he said in April.

Tucker also emphasized three main priorities: improving the balance sheet to accelerate cash flow and reduce debt, closing underperforming restaurants to enhance unit growth and profitability, and returning to a simpler business model that supports long-term growth.

The closures come amid ongoing pressure from rising beef costs and decreased customer traffic.

Jack in the Box operates roughly 2,200 restaurants across the US, with a heavy concentration in California, Texas, and Arizona.

Jack in the Box Shuts Underperforming Stores

The company believes that shutting underperforming locations will help improve overall unit economics and allow management to focus on high-performing stores.

According to the NYPost, Jack in the Box recently completed the sale of Del Taco to Yadav Enterprises for approximately $119 million, part of a broader effort to streamline operations and raise capital.

This move, coupled with restaurant closures, reflects the chain's plan to strengthen its financial health while adapting to changing market conditions.

Despite the challenges, management is optimistic that these steps will position Jack in the Box for a more stable future.

"Our actions today focus on growth-oriented capital investments, including technology and restaurant reimage, while simplifying our business model for investors," Tucker added.