Jack in the Box — the fast food chain known for its Sourdough Jack burger and deep-fried tacos — is facing significant business challenges, with a tanking stock and waning customer base.
Shares of the company have halved over the past year and sales declined about 6% last quarter. The chainclosed dozens of storesin 2025 during its financial struggles, which it hopes to solve with selling certain real estate holdings.
There’s also pressure mounting on the fast food chain to change leadership. Biglari Capital owns a 9.9% stake in the company and has pushed for new leadership. A release from Biglari in early February said Jack in the Box had experienced “catastrophic value destruction.”
CEO Lance Tucker said the company was not surprised with first quarter earnings, which showed sales decline 6.7%.
Tucker also said the company has seen a drastic decline in spending from Hispanic customers in an earnings call last year, possibly due toICE immigration raids.
“Jack in the Box significantly over-indexes with Hispanic guests, who, especially in our core markets, face uncertainty and have pulled back their spending,” he said.
“Our results for the quarter were in line with our expectations,” Tucker said last week. “We remain focused on the fundamentals, simplifying the business, and delivering on our ‘Jack on Track’ commitments as we build a stronger foundation for sustainable growth.”
Jonathan Maze, editor-in-chief at Restaurant Business Magazine,told the Los Angeles Timesthat Hispanic customers staying home likely had an outsized impact on Jack in the Box.
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“You now have a sizable portion of the consumer base that is less likely to leave their house,” Maze said. “This is particularly true for Jack in the Box, which has two of its biggest markets in California and Texas.”
Source: California Post – Breaking California News, Photos & Videos
