Shares of restaurant operator Jack in the Box have been on a choppy ride, especially on the heels of reorganization within the company and a continuous decline in traffic due to macro concerns and conservative spending among consumers.
After an extensive operational review and financial analysis of its Qdoba Mexican restaurants, Jack in the Box has made the decision to close 67 (10% of total) underperforming restaurants under its Qdoba Mexican Grill brand by the end of fiscal 2013 (ending Sept 29, 2013).
There are currently 647 Qdoba restaurants worldwide, which includes 340 company-owned units. When all is said and done, the company expects to incur about $28 million as impairment charges related to the closings and approximately $12 million in lease-related costs during fiscal 2013.
