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Jack in the Box CEO says Hispanic consumers pulling back spending over 'uncertainty'
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Jack in the Box CEO says Hispanic consumers pulling back spending over 'uncertainty'
Aug 7, 2025 3:58 PM

Aug 7 (Reuters) - Hispanic consumers in Jack in the

Box's core markets "face uncertainty and have pulled

back their spending," with the issue having an outsized impact

on the U.S. fast-food chain's sales, its CEO said.

Same-store sales for Jack in the Box declined 7.1% in the third

quarter ended July 6. The company also reported a decline of

2.6% in same-store sales for another taco chain it owns, Del

Taco.

Jack in the Box CEO Lance Tucker, speaking on an earnings call

on Wednesday, separated the pullback of Hispanic consumers from

other trends, such as a drop in spending by lower-income

consumers that he said was "well in line with industry trends"

Tucker said the proportion of Hispanic consumers at Jack in the

Box, which has core markets in Texas, California and the U.S.

Southwest, is twice as high as some major competitors.

Tucker did not specify the "uncertainty" he believes Hispanic

consumers are facing.

U.S. Immigration and Customs Enforcement officers have been

intensifying efforts in recent months to deliver on Republican

President Donald Trump's promise of record-level deportations.

Rita Fernandez, director of immigration policy at UnidosUS,

which describes itself as the largest Latino civil rights group

in the country, said many migrants have been withdrawing from

public life.

"Jack in the Box is a favorite destination and dining

choice for many Hispanics," she said, but "a day laborer who is

undocumented maybe isn't going to take that lunch break at Jack

in the Box if he doesn't know if he'll encounter ICE on the

way."

Tucker said the pullback in spending from Hispanic consumers has

been "pretty consistent" since the beginning of the year.

Trump's second term began in January.

The timeline is consistent with what Wingstop ( WING ) CEO Michael

Skipworth said last week, when he said areas with a high

proportion of Hispanic and low-income consumers have had weaker

demand since the beginning of the year.

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