Subsequent Events

6 Months Ended

Apr. 16, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

SUBSEQUENT EVENTS

On May 11, 2017, the Board of Directors declared a cash dividend of $0.40 per common share, to be paid on June 12, 2017 to shareholders of record as of the close of business on May 30, 2017.

On May 11, 2017, the Board of Directors approved an additional $100.0 million stock buy-back program that expires in November 2018.

Subsequent to the end of the second quarter, we signed non-binding letters of intent with franchisees to sell 10 company-operated restaurants in several markets. Pre-tax gross proceeds related to these sales are estimated at $6.0 million to $7.0 million.

Subsequent to the end of the second quarter, we acquired 31 Jack in the Box franchise restaurants in a non-cash transaction. We are currently determining the fair value of the non-cash purchase price allocations using the acquisition method of accounting for business combinations.

At our investor meeting last May, we said one of the factors that would cause us to reconsider our strategy with respect to Qdoba was valuation. It has become more apparent since then that the overall valuation of the Company is being impacted by having two different business models. As a result, we've retained Morgan Stanley & Co. LLC to assist the Board in its evaluation of potential alternatives with respect to Qdoba, as well as other ways to enhance shareholder value.