Jack in the Box is selling the Qdoba restaurant chain to private-equity firm Apollo Global Management for $305 million in cash.
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The chain of Mexican restaurants has been a sore spot on Jack in the Box's overall business, posting same-store sales declines throughout the last year. The San Diego burger chain has been weighing its options with Qdoba for most of this year.
Chairman and CEO Lenny Comma said Tuesday the San Diego company decided that selling Qdoba was the best thing to do.
Jack in the Box Inc. has more than 2,200 restaurants, while Qdoba has more than 700 throughout the U.S. and Canada.
The deal is expected to close by April 2018.
This story has been corrected to show that the sale price was $305 million, not $350 million.