Qdoba's Sale Is Bad News For Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) has defined the fast-casual Mexican segment for most of its history, but the company is not without rivals. Moe's Southwest Kitchen, Baja Fresh, and Lime Fresh Mexican have all sought the burrito banner at one point or another, but arguably no chain more closely resembles Chipotle than Qdoba, a Jack in the Box (NASDAQ: JACK) property. According to Nation's Restaurant News, Jack in the Box is readying for a sale to Apollo Global Management, the same company that owns Chuck E. Cheese.
The bad news for Chipotle investors is that the sale price for the 700-location chain is expected to be just a bit over $300 million, a paltry sum compared to Chipotle, which is valued at $8 billion today.
Image source: Chipotle.
Source: Fool.com
