Jack in the Box to sell Qdoba after 14 years of ownership.
Jack in the Box Inc. will be selling the struggling fast-casual Mexican chain, Qdoba Restaurant Corp. According to a recent Nation’s Restaurant news article, the brand will be sold to Apollo Global Management LLC for $305 million and includes the 700 owned and franchised restaurants, which will be closed by April 2018. Apollo’s current portfolio includes CEC Entertainment Inc., parent to Chuck E. Cheese’s and Peter Piper Pizza.
When Jack in the Box first acquired Qdoba in 2003, the brand had 85 locations in 16 states. Now the brand has locations in 47 states with system-wide sales of $820 million in fiscal 2017.
Jack in the Box CEO and chairman, Lenny Comma, explained, “Over the past 14 years, net units have grown at a compound annual growth rate of 16 percent.” Comma also mentioned in his statement, “our board of directors has determined that the sale of Qdoba is the best alternative for enhancing shareholder value and is consistent with the company’s desire to transition to a less capital-intensive business model.”