One demographic’s unwillingness to eat out is plummeting Jack in the Box stock
Jack in the Box — the fast-food brand known for its Sourdough Jack burger and deep-fried tacos — is grappling with mounting business challenges, including a steep drop in its stock price and a shrinking customer base.
Company shares have lost roughly half their value over the past year, while quarterly sales fell about 6%. As part of efforts to stabilize its finances, the chain shuttered dozens of locations in 2025 and is exploring the sale of selected real-estate assets.
Pressure is also growing on the company’s leadership. Investment firm Biglari Capital, which holds a 9.9% stake, has called for management changes. In an early-February statement, the firm said Jack in the Box had suffered “catastrophic value destruction.” CEO Lance Tucker said the company had anticipated weak first-quarter results, which showed a 6.7% sales decline.
Tucker has also pointed to a sharp reduction in spending among Hispanic customers, which he linked to immigration enforcement activity by U.S. Immigration and Customs Enforcement.
“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 during an earnings call last year.
“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.”
According to Jonathan Maze, editor-in-chief of Restaurant Business Magazine, reduced mobility among Hispanic consumers likely hit Jack in the Box especially hard. Speaking to the Los Angeles Times, Maze noted that “a sizable portion of the consumer base is less likely to leave their house,” adding that the effect is amplified in the chain’s largest markets, California and Texas.
Leadership uncertainty continues as activist investors seek to remove chairman David Goebel by the end of the month. Jack in the Box’s difficulties come amid broader fast-food sector turbulence: Wendy’s has announced plans to close hundreds of locations nationwide, while Chipotle shares have fallen 37%.
Unlike many major U.S. fast-food competitors — aside from Taco Bell — Jack in the Box offers menu items such as tacos with international roots. The company closed dozens of restaurants last year as part of its restructuring.
At the same time, immigration enforcement has intensified under the administration of Donald Trump, with a focus on undocumented migrants from South America and Mexico.
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