SAN DIEGO — Jack in the Box Inc. has announced that it has entered into a purchase and sale agreement for 55 of its 61 Quick Stuff convenience stores and gas stations. The all-cash transaction is expected to be completed by the close of the company's fiscal year ending Sept. 27, 2009.
Additionally, the company is in negotiations with several other bidders on the remaining Quick Stuff sites and expects to complete the disposition of those locations by the end of the current fiscal year.
Disposition of the company's 61 Quick Stuff stores is expected to result in a charge, net of taxes, of approximately $10 million to $14 million, which will be recorded in discontinued operations in the company's fiscal third quarter 2009 results. The company does not intend to sell any of the Jack in the Box restaurants adjoining the Quick Stuff locations in connection with the transactions.
"The board and management of Jack in the Box agreed that by selling Quick Stuff, we can focus on maximizing the potential of our Jack in the Box and Qdoba brands," said Linda Lang, chairman and chief executive. "We appreciate the dedication of all of our Quick Stuff employees, and will look to them to assist in a smooth transition during this process."
Ray Cleeman, president of SMJ Capital Advisors LLC, served as exclusive financial advisor to Jack in the Box in connection with the sale of Quick Stuff.
