According to news from USA Today, Jack In The Box is selling off its struggling Mexican fast casual restaurant chain Qdoba for $305 million.
The decision comes a few months after the San Diego-based chain announced it was considering a sale as one of the “strategic options” open for the Mexican fast food brand.
Jack In the Box acquired Qdoba restaurants in 2003, when it was an 85-location chain with around $65 million in annual sales. The brand has since grown to 700 locations in 47 states, with sales on the order of $820 million annually. But those sales have fallen in recent quarters — down 1.4 percent in 2017 and 3 percent at company-owned locations.
The fourth quarter saw the year’s worst results, with company-owned, same-store sales down a full 4 percent year over year. The situation was worsened by spiking avocado prices and mandated wage increases.
Apollo Global Management is the buyer behind the deal, which is expected to close sometime in April.
Jack In The Box’s stock rose 2.7 percent in pre-market trading Tuesday to $103 following the news.