Jack in the Box is planning to close between 150 to 200 underperforming restaurants.

The San Diego-based chain, which currently operates and franchises more than 2,000 restaurants, says it plans to close 80 to 120 locations by the end of the year, reports USA TODAY. The remaining restaurants slated to close will be determined by agreements between the company and its franchisees.

The closures are aimed at “addressing our balance sheet to accelerate cash flow and pay down debt,” said Jack in the Box CEO Lance Tucker in a statement,” reports CNN.

The restaurant chain hopes to pay off $300 million in debt over the next two years.

Jack in the Box is also considering selling the Del Taco brand it acquired three years ago. Jack in the Box acquired Del Taco for approximately $585 million in March 2022. It opened its first Alabama location in Huntsville earlier this year.

At the time, Jack in the Box acquired the brand for its “similar guest profiles, menu offerings and company cultures.” Del Taco’s menu focuses on tacos, burritos, French fries, and burgers.

Red Robin considering closing restaurants

In March, Red Robin Gourmet Burgers announced it was considering closing dozens of restaurants.

On an earnings call that month, the company’s CEO G.J. Hart said that the burger chain was evaluating about 70 underperforming locations, according to Nations Restaurant News.