Despite facing comparable sales headwinds, Jack in the Box continues to thrive, focusing on strategic expansion and innovation. For the second consecutive year, the burger chain has achieved net growth in its unit count, opening more stores than it closed. This momentum is powered by the company’s franchising initiatives, which have proven to be a robust strategy for driving growth amidst sales challenges.
A recent franchising deal will bring five new stores to Detroit, adding to agreements already in place for Chicago, western Michigan, and Georgia. The company’s focus on franchising helped Jack in the Box open a net five new units in fiscal 2024, matching the growth achieved last year. As of year-end, the chain operates 2,191 units, with 101 development agreements in progress for 464 new locations.
While same-store sales dipped 2.1% in Q4 fiscal 2024 (down 1.3% for the year), CEO Darin Harris emphasized the resilience of franchisee finances, stating they remained stable year-over-year. Strategic closures of underperforming units—25 in total this fiscal year—aligned with broader industry trends, allowing the company to focus resources on higher-performing locations.
Jack in the Box’s expansion into new markets is paying dividends. For example, five newly opened restaurants in Salt Lake City are reporting impressive weekly average unit volumes exceeding $90,000. The chain plans to continue its geographic growth, with first-time entries into Florida and a return to Chicago in 2025.
To strengthen its system and boost sales, the company is rolling out innovative technology like new POS systems and self-service kiosks. These kiosks have already contributed to a double-digit increase in average check size, thanks to upsell capabilities and improved menu visibility. Additionally, enhancements to its mobile app have improved the user experience, accelerated loyalty program adoption, and driven incremental sales.
While challenges like same-store sales declines mirror broader industry trends, Jack in the Box’s strategic initiatives position it for long-term success. With innovation, geographic expansion, and a focus on franchisee health, the chain is poised to continue its growth journey. Learn more about strategies to increase restaurant sales here .
