Fast-food chain Jack in the Box plans to close between 150 and 200 “underperforming” locations over the next few years, according to a report from USA Today.

 The company, which operates around 2,200 restaurants primarily on the West Coast and in the Midwest, aims to shutter 80 to 120 locations by the end of 2025.

Additional closures will happen later, “based on respective franchise agreement termination dates,” the newspaper reported.

Del Taco May Be Sold

In another major move, Jack in the Box is also considering selling Del Taco, the Tex-Mex fast-food brand it acquired for approximately $585 million in March 2022. 

At the time, Jack in the Box praised the acquisition, citing “similar guest profiles, menu offerings and company cultures.” Today, Del Taco operates just under 600 locations across 17 states.

Jack in the Box Leadership Strategy 

Lance Tucker, who was named CEO of Jack in the Box on March 31, emphasized a new direction for the company.

“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,” Tucker said in a news release.

The closures and possible sale of Del Taco are part of the company’s broader “Jack on Track” plan, announced Wednesday, which aims to “improve long-term financial performance,” according to USA Today.

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Which Locations Will Close?

Jack in the Box has not specified which restaurants will close.

The company currently operates locations across 22 states: Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, and Washington.

For more details, visit USA Today's full report.