Company spokesperson Brian Luscomb offered little detail of the sales, other than acknowledging that 25 of the stores were purchased by Susser Holdings Corp. in Corpus Christi, Texas, as previously reported in CSP Daily News. Various sources suggest Chevron Corp., San Ramon, Calif., arranged [image-nocss] to purchase 55 of the sites and then divided them up among its wholesalers in the appropriate markets. Luscomb would not confirm that, however.
In June, Jack in the Box announced the purchase and sale agreement for 55 of the c-stores and gas stations without naming the buyer. At the time, Luscomb told CSP Daily News, "We should have the transaction completed for [the remaining six] sites by the end of the fiscal year, as well."
The Quick Stuff locations are each built adjacent to a full-size Jack in the Box restaurant, and each includes a major-brand fuel station, with brands such as Chevron, Shell, Arco, ExxonMobil, Texaco and CITGO. Sites are located in California, Texas, Arizona, Louisiana, Idaho, Washington and Illinois.
The units are about 2,000 square feet in size and are open 24 hours a day. The restaurant is connected to the Quick Stuff store by a common area that includes restroom facilities. They feature ATMs and fuel islands with four-to-six dispensers and pay-at-the-pump credit-card readers. Some locations also offer car washes.
The company does not intend to sell any of the Jack in the Box restaurants adjoining the Quick Stuff locations in connection with these 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," chairman and CEO Linda Lang said in a press release in June. "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."
Luscomb said the c-stores were "looked at as a growth vehicle for us. It just did not work out for us."
Disposition of the company's 61 Quick Stuff stores is expected to result in a charge, net of taxes, of approximately $10 to $14 million, which will be recorded in discontinued operations in the company's fiscal third quarter 2009 results.
Ray Cleeman, president of SMJ Capital Advisors LLC, Hallandale, Fla., served as exclusive financial advisor to Jack in the Box in connection with the sale of Quick Stuff.
"We are thrilled that we could assist Jack in the Box Inc. with this superb outcome, leading to the sale of all of its 61 Quick Stuff fuel and convenience stores across the country," Cleeman said in a statement. "With this successful sale, SMJ has now advised on nearly $1 billion of transactions in 2009, following up on our engagement earlier this year advising Pacific Convenience & Fuels on the acquisition of all of ConocoPhillips' U.S. gas station and convenience store sites."
Jack in the Box is a restaurant company that operates and franchises Jack in the Box restaurants, with more than 2,180 restaurants in 18 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill, a fast-casual dining chain with more than 480 restaurants in 42 states and the District of Columbia. The company had previously announced plans to sell its Quick Stuff chain of 61 convenience stores, each built adjacent to a full-size Jack in the Box restaurant and including a major-brand fuel station.
(Click here for previousCSP Daily News coverage. Also click here.)
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