When the fast food joints start closing, it's usually not a great indicator for the economy. 

Jack in the Box plans to close up to 200 underperforming locations, aiming to bolster its balance sheet amid declining consumer spending.

The San Diego-based chain also announced it’s exploring a sale of its struggling Del Taco brand, according to CBS News. Most closures will target older, low-performing stores, with up to 120 shutting down by year’s end and the rest phasing out based on franchise terms.

Starting in 2026, the company expects to maintain a 1% annual closure rate.

The CBS News report says that Jack in the Box hasn't released its 2025 closure list but says more details are coming in August. The move is part of a push to cut debt and improve finances.

“Jack in the Box has gotten away from some of the core characteristics that have made it a successful driver of shareholder value in the past and it’s time we return to those basics,” said CEO Lance Tucker.

Second-quarter sales fell 4.4% at Jack in the Box and 3.6% at Del Taco. The company’s stock has tumbled 57% over the past year.

Broader industry headwinds persist. McDonald’s CEO admitted its “value leadership gap has shrunk,” while U.S. consumer sentiment dropped for a fourth straight month in April amid economic worries and tariff fears.