Jack in the Box Inc. has announced that it will close 40 of its company-operated restaurants before Oct. 3. The units are located in seven Southeastern states, including Texas.
The decision came after an analysis performed during the fourth quarter concluded unacceptable return-on-investments and other performance metrics at these locations. The San Diego-based company expects the closings to have a positive impact on future earnings, cash flow and ROI capital.
"The decision to close underperforming restaurants reflects the company's commitment to disciplined capital allocation and to ensuring we are maximizing both our physical assets and people resources," said Linda A. Lang, CEO and president of Jack in the Box, Inc.
This announcement comes a year after the company announced an aggressive plan for refranchising efforts.
There are more than 2,200 Jack in the Box restaurants in 18 states.
