Why A Jack In The Box Comeback May Be Tough For The Fast Food Chain In 2026

Chain restaurants have been having a tough few years, but even by the low standards of the industry, Jack in the Box has had a brutal run that seems unlikely to turn into a comeback in 2026. This year alone Wendy's has closed hundreds of locations, as has Denny's, with others also joining the cutback in smaller numbers. Jack in the Box has been doing the same, but its cratering has no end in sight. Over the last year and a half, the chain's same-store sales have nosedived, falling every quarter since the spring of 2024, with one brief plateau to start this year. That performance has led to a similar collapse of Jack in the Box's value, as its stock price, which was trading near $100 only two years ago, has fallen 80% to around $20.

That miserable performance has left Jack in the Box's management rethinking the brand's whole strategy. It has made two major moves this year, announcing the closure of 200 or more underperforming stores and selling off its ownership of Del Taco. The latter shows more than anything how Jack In The Box has struggled, as it bought Del Taco for $575 million just four years ago, only to sell it for only $115 million in 2025. This was all part of Jack in the Box's "JACK on Track" plan announced earlier this year to improve the chain's performance. But looking at the future, Jack in the Box has problems some spending cuts might not fix.

The largest problem is the one Jack in the Box is working hardest to address, which is that the company is deeply in debt. Even after selling Del Taco for cash to start paying it down, Jack in the Box holds $1.5 billion in debt. That kind of debt puts a massive strain on the company's ability to spend money improving its stores and overhauling its menu. Unfortunately, that kind of refresh is exactly what Jack in the Box needs.

Unlike fast food businesses with a clear identity, like Taco Bell or McDonald's, Jack in the Box lacks a defined audience, as it mostly touts itself as an indulgent late-night spot. That's not a big enough market to support the nearly 2,000 stores the company still operates. Those same stores continue to decline in sales year after year, showing the chain's menu is not resonating with customers.

In fact, Jack in the Box's CEO has also admitted the brand lacks a clear pricing strategy, being neither a fast food spot that offers great bang for your buck nor one seen as high quality, although the chain is experimenting with lower prices. Combine that with the same rising costs tied to food and labor that have been driving up fast food prices everywhere, and Jack in the Box faces brutal headwinds on a turnaround.