Jack in the Box will sell its Qdoba concept to Apollo Global Management, a private equity firm, for $305 million. The deal is expected to close in April 2018 and remains subject to customary closing conditions.
This marks the second recent sale of a quick-serve restaurant concept. Yesterday, Centre Partners sold Captain D’s to Sentinel Partners.
The deal comes after the Jack in the Box management team evaluated a variety of strategic options, including spinning off Qdoba and refranchising company-owned restaurants, said Lenny Comma, chairman and CEO for Jack in the Box, in a statement announcing the transaction.
When Jack in the Box acquired Qdoba in 2003, the Mexican-themed chain had 85 locations in 16 states, with $65 million in system-wide sales. Today, Qdoba has more than 700 locations in 47 states and system-wide sales of more than $820 million during its 2017 fiscal year, per a release announcing the deal.