San Diego fast food icon Jack in the Box is considering unloading a Mexican fast food chain it owns while shuttering up to 200 underperforming eateries in a turnaround plan announced Thursday.

Jack in the Box tapped Bank of America Securities to explore strategic alternatives for its Del Taco brand, including possibly selling the business. At the same time, the fast food chain plans to shutter 150 to 200 restaurants — most of which have been in the system for more than 30 years — including up to 120 eateries shuttering by the end of the year.

Del Taco could sell for as much as $200M, Bloomberg reported, citing an anonymous source. Jack in the Box purchased Del Taco in 2022 for $585M and operates 2,800 Jack in the Box and Del Taco locations nationwide.

The plan to improve the chain's performance has been dubbed “JACK on Track” and includes suspending dividend payments, limiting new restaurant openings and selling some of its real estate. The company plans to embrace an asset-light model, leaning more on leased space instead of owned.

The plan amounts to “an overall return to simplicity for the Jack in the Box business model and investor story,” CEO Lance Tucker said in a statement.

The company's shares were down 10% in the early afternoon on Thursday following the announcement.

Del Taco has been a drag on the business, with its revenue dipping 18% year-over-year in the first quarter. At the end of the company's fiscal second quarter on April 13, Jack in the Box tallied a 4.4% loss in same-store sales while Del Taco same-store sales dropped 3.6%.

The company reported that restaurant margins were impacted during the year by wage increases, higher utility costs and inflation.

Tucker, who was named CEO last month after former CEO Darin Harris resigned in February, said the company will continue planned improvements among its current stores.

The restaurant chain was paying out annual dividends of $1.76 per share. The move to slash those payments is expected to save Jack in the Box $35M.