Jack In The Box To Shut 40 Stores

Zacks.com:

Jack in the Box Inc. announced recently that it is planning to shut 40 company-owned underperforming restaurants before the end of its current fiscal year 2010 on October 3, 2010.

The fast-food chain plans to close the restaurants situated across 7 states, mostly in the Southeast and Texas, places hard-hit by the economic downturn. The bleak economic scenario resulted in weak labor and tight credit markets, which slashed discretionary spending.

Jack in the Box, based in San Diego, stated that it expects about $8.5 million to $9.5 million as impairment charges related to the closings and approximately $21 million to $25 million in lease-related costs for the fourth quarter of 2010.

Leave a Comment

Your email address will not be published. Required fields are marked *