Jack in the Box blames ICE for tanking sales

Jack in the Box — the fast food chain known for its Sourdough Jack burger and deep-fried tacos — is facing significant business challenges, with a tanking stock and waning customer base.

Shares of the company have halved over the past year and sales declined about 6% last quarter. The chain closed dozens of stores in 2025 during its financial struggles, which it hopes to solve with selling certain real estate holdings.

There’s also pressure mounting on the fast food chain to change leadership. Biglari Capital owns a 9.9% stake in the company and has pushed for new leadership. A release from Biglari in early February said Jack in the Box had experienced “catastrophic value destruction.”

CEO Lance Tucker said the company was not surprised with first quarter earnings, which showed sales decline 6.7%.

Tucker also said the company has seen a drastic decline in spending from Hispanic customers in an earnings call last year, possibly due to ICE immigration raids.

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“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.

“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.”

Jonathan Maze, editor-in-chief at Restaurant Business Magazine, told the Los Angeles Times that Hispanic customers staying home likely had an outsized impact on Jack in the Box.

“You now have a sizable portion of the consumer base that is less likely to leave their house,” Maze said. “This is particularly true for Jack in the Box, which has two of its biggest markets in California and Texas.”

During the immigration drama, there’s questions on whether the company will keep chairman David Goebel, as an activist investor aims to out him at the end of the month.

The trouble for Jack in the Box comes as fast food giant Wendy’s announced it will be closing hundreds of restaurants across the country and stocks for Chipotle tumbling by 37%.

Jack in the Box, unlike other common fast food chains outside of Taco Bell, sells international items like tacos. The chain closed dozens of stores last year during its financial struggles.

The Trump administration has ramped up its immigration agenda in recent months, focusing on illegal immigrants from South America and Mexico.