Jack in the Box Inc. (JACK) will close 40 under-performing restaurants, mainly in Texas and the south-east.
The fast food company will close the restaurants by the end of the fiscal year on Oct. 3, Jack in the Box said in a statement. Jack in the Box has a total of more than 2,200 restaurants.
"These restaurant closures are expected to have a positive impact on our future earnings, cash flow and return on invested capital," CEO Linda Lang said.
The company expects pre-tax charges in the fourth quarter of fiscal 2010 of about $8.5 to $9.5 million in non-cash impairment charges and about $21 to $25 million in lease-related costs.