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Jack in the Box Closing 40 Restaurants

by Hugh Collins Sep 30th 2010 7:39AM
Jack in the BoxJack in the Box Inc. (JACK) will close 40 under-performing restaurants, mainly in Texas and the south-east.

The fast food company will close the restaurants by the end of the fiscal year on Oct. 3, Jack in the Box said in a statement. Jack in the Box has a total of more than 2,200 restaurants.

"These restaurant closures are expected to have a positive impact on our future earnings, cash flow and return on invested capital," CEO Linda Lang said.

The company expects pre-tax charges in the fourth quarter of fiscal 2010 of about $8.5 to $9.5 million in non-cash impairment charges and about $21 to $25 million in lease-related costs.

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38 Comments

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Michael Sanders

This explains why there was a long lineup, today. Lots of people were getting their last Steak n' Egg burritos... I could live on these, for a good while. I may even start buying two, freezing one. I'm not a hoarder, but I do like to plan ahead. I've been going to Taco Bell, way too much. They are great, but too much refried beans, turns my colon into a renewable source of energy. I even had to give up smoking, for safety reasons.

September 30 2010 at 4:45 PM Report abuse +1 rate up rate down Reply
1 reply to Michael Sanders's comment
arvig

Finally, a post by someone that comments not only on the restaurant chain, but on the ones that will be closed. And isn't using this article to twist the topic into inane political bashing! Thank you! And yes, I am being sincere, thank you! Someone posting here can be on topic!

September 30 2010 at 5:49 PM Report abuse +1 rate up rate down Reply
pete

In keeping with the current administration's intent to control what you eat, how much you eat, and when you eat, Jack-in-the-crack will be closing 40 houses. The loss of jobs in this economy is regrettable, but the administrations feels the American people can absorb another attack on limited unemployment compensation funds. In a White House statement, president obama stated that he "feels the pain of the people, but it is stated opinion that we must all suffer for the greater good of building our government." He further asserted that, "At the current rate of unemployment, what's a few hundred more." Speaker of the House pelosi had this to say to those who will be losing their jobs, "Welcome to the unemployed class. We do more to boost the economy of the United States than any other group of people in the last administration, and now you have the privilege of becoming part of our group."

September 30 2010 at 4:37 PM Report abuse +4 rate up rate down Reply
1 reply to pete's comment
arvig

Wait Pete, you're the guy whom somehow thinks that just because Clinton liked to eat at McDonald's, that somehow fast food restaurants are involved in politics, right? Do tell me, what branch of government is McDonald's in, or Jack in the Box? And Ronald McDonald, along with "Jack", the Taco Bell Chihuahua and any other restaurant icon. :P

September 30 2010 at 5:50 PM Report abuse -1 rate up rate down Reply
psca70

JACK is good but SNS is better

September 30 2010 at 4:25 PM Report abuse -1 rate up rate down Reply
tjpopi

ASS LONG THEY DONT CLOSED IN CALIFORNIA. JACK IN THE BOX HAS THE BEST BURGERS THEN MC DONALD`S, AND BURGER KING, WELL WENDY`S IS GOOD. BUT JACK IN THE BOX SERVES HAMBURGERS 24 HOURES. THEY COOK FOOD RIGHT AFTER U ORDER SO IS HOT AND FRESH.THE MEDIUM DRINKS ARE BIGGER THEN MC DONALD`S.

September 30 2010 at 3:06 PM Report abuse +3 rate up rate down Reply
1 reply to tjpopi's comment
jwcisler

I like their egg rolls...but they have always been a bit pricey!

September 30 2010 at 3:19 PM Report abuse -1 rate up rate down Reply
arvig

A couple comments: 1) @ Don: No, the whole kangaroo meat claim is pure urban legend. And has been claimed for almost every fast food restaurant out there. In fact kangaroo meat, if imported to the USA anyway is more expensive then beef so it would be absurd for them to use it. As an aside, in the early 90's in the Seattle area there was a big e-coli outbreak with them, but that is completly unrelated to any urban legend/false claims about them using kangaroo meat. 2) @ jimlaptt: No, just because someone calls you a racist, does not mean the person making an accusation is also a racist. Are you a racist Jim? I don't know, but your comment is very easy to take as thinly veiled racism. I'll leave it at that, other then to say no, I am not a racist. 3) I'll try to not flame, but I really do want to know what Obama, Bush, the "Tea Party", the Republicans not connected to them, the Democrats, or any other politican or political party has to do with Jack In the Box. I guess one can make some indirect connection due to them closing stores due to the economy IF the reason is due to that. It could be their menu wouldn't sell well in Texas regardless of if it was a strong economy or not too. But even so, please...does every blog on AOL HAVE to mention politics? I've literally seen blogs about someone's favorite brand of peanut butter have people go into inane rants about politicians, currently in office and otherwise. Go find a politically themed blog and mention politics there. Obama didn't close these restaurants. Nor did Sarah Palin. Or any other politican. So why mention them?

September 30 2010 at 2:04 PM Report abuse rate up rate down Reply
4 replies to arvig's comment
Drego

Hmmmm . Jack In The Box? Wasn't this the restaurant chain that was caught passing off kangaroo meat as hamburger back in the 70's? Perhaps they should change the name of their hamburgers to karoo burgers. I was living in Texas at the time and I recall the health department shut them down for a couple of years.

September 30 2010 at 1:46 PM Report abuse rate up rate down Reply
nancysara8

Hallelujah! More J in the Bs need to close! It must be their disgusting, highly disturbing commercials that have turned people off -- that big ugly frightening head! I'll be overjoyed when the very last one shuts its doors!

September 30 2010 at 1:23 PM Report abuse -4 rate up rate down Reply
1 reply to nancysara8's comment
piscesbaby36

For those of you who don't own a business, you have no clue what your employers are going thjrough right now trying to figure out what the new healthcare laws are going to do to their income.. on top of which they have to worry about how much Obama is going to raise their taxes in January... The business environment is going to get less and less friendly and that means fewer and fewer jobs. The Tea Party people are the only ones out there calling for lower taxes and spending cuts.. WE need a tsunami change of all incumbents.

September 30 2010 at 1:01 PM Report abuse +6 rate up rate down Reply
1 reply to piscesbaby36's comment
piscesbaby36

There is a letter from McDonalds which circulated this morning regarding how Obamacare is going to effect them adversely.. that they may have to forego the insurance of tens of thousands of their workers.. and some 1.4 million workers who are on a limited policy may be dropped.. Then the next minute there was a denial of the said letter by both McDonalds and the Government.. Me thinks Sebilbius sent one of her poison pen warning letters to get McDonalds to make the denial..Whnite Castle said by 2014 that 55% of their profits would go to Obamacare.. And IHop is expressing similar worries..

September 30 2010 at 12:54 PM Report abuse +4 rate up rate down Reply
allyndp

I just hope they keep the ones in Arizona becsuse they are the only burger for me when I go there in the winter.

September 30 2010 at 12:36 PM Report abuse +3 rate up rate down Reply