Jack in the Box pops after selling off struggling Qdoba brand
- Jack in the Box's stock jumped fter news that it was selling its struggling Qdoba chain.
- Qdoba has reported declining same-store sales in the past few quarters.
- Click here to view Jack in the Box's real-time stock price.
Shares of fast-food chain Jack in the Box jumped on Wednesday by 2.1% to $102.45 per share after it announced the sale of Qdoba to Apollo Global Management for $350 million.
The fast-casual Mexican chain struggled against competition as higher food, packaging, and labor costs weighed on the restaurant. Though the Tex-Mex chain has fared better than its nearest competitor, Chipotle, Qdoba reported a decline in same-store sales of 3.1% in the third quarter and 2.7% year-over-year. Total earnings for Jack in the Box also fell.
The company said in its third-quarter report that it was working with Morgan Stanley to evaluate "potential alternatives with respect to Qdoba."
Jack in the Box's stock is down 5.42% since the start of the year.
