After over 14 years of ownership and growth, Jack In The Box sells Qdoba off to Apollo Management Group in a massive $305 million deal.
Photo: Anthony92931 // Wikimedia Commons
Qdoba, which has become the second-largest Mexican fast casual brand in the US, will now be a part of the same company that controls Chuck E. Cheese. Proceeds of the deal, which is expected to close in April of 2018, will be used by Jack In The Box to retire outstanding debt, according to a release about the sale.
When Jack In The Box first acquired Qdoba in 2003, it had 85 locations and just $65 million in annual sales. Today, the chain has grown to 700 national locations with $820 million in sales in the 2017 fiscal year.
In a statement, CEO Larry Comma called Qdoba's sale "the best alternative for enhancing shareholder value" and noted it as "consistent with [Jack In The Box's] desire to transition to a less capital-intensive business model."
Jack In The Box was known to be looking at strategic options to possibly sell or refranchise Qdoba for several months, especially after the chain's same-store sales fell 2.1 percent in the fourth quarter of 2017, Nation's Restaurant News reports.
Shareholders of Jack In The Box seem to be pleased with the sale. As of press time this morning, shares of the fast food giant had climbed 2.57% to $102.92 each, according to Google Finance.
