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Jack in the Box to Close 40 Restaurants
Wednesday, September 29, 1:38 PM ET

Burger chain Jack in the Box (NASDAQ:JACK) said today it is planning to close 40 of its company-operated restaurants by the end of its current fiscal year, which ends October 3.

The restaurants slated for closure are in 7 states, primarily in the southeast and Texas, the company said.

Jack in the Box said the restaurants were not meeting acceptable levels of return on investment, and the closures will have a positive impact on future earnings.

Pre-tax charges in the fourth quarter will total $8.5 to $9.5 million in non-cash impairment charges, and $21 to $25 million in lease-related costs.

Jack in the Box shares are trading up over .5% Wednesday.

A check of some of its burger rivals: McDonald’s (NYSE:MCD) shares are trading down a quarter of a percent, while Wendy’s/Arby’s (NASDAQ:WEN) shares are trading down 1.3%.

For MarketNewsVideo.com, I’m Sayoko Murase.

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