San Diego, December 23, 2025
Jack in the Box Inc. has completed the sale of Del Taco Holdings Inc. to Yadav Enterprises for approximately $119 million, marking a strategic shift to simplify operations. The sale involved $109 million in cash and a $10 million promissory note, with proceeds aimed at reducing existing debt. This transaction aligns with Jack in the Box’s initiative to streamline operations and enhance focus on its core brand, supporting long-term financial health in the competitive fast-food sector.
Jack in the Box Sells Del Taco Holdings for $119 Million
Transaction Marks a Strategic Shift for San Diego-Based Company
San Diego, California
In a significant move towards simplifying operations and reducing debt, Jack in the Box Inc. has successfully completed the sale of Del Taco Holdings Inc. to Yadav Enterprises Inc. for approximately $119 million. The transaction was finalized on December 22, 2025, and signals a strategic pivot aimed at fortifying Jack in the Box’s balance sheet and minimizing operational complexity.
The sale comprised $109 million in cash, along with a $10 million promissory note at an 8% annual interest rate, guaranteed by Anil Yadav, the founder and CEO of Yadav Enterprises. The proceeds from this transaction are earmarked for retiring a portion of Jack in the Box’s existing debt, specifically linked to the Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II.
Aligning with the “Jack on Track” Plan
This divestiture aligns with Jack in the Box’s “Jack on Track” initiative, a plan introduced in April 2025 to transition the company towards a simpler, asset-light business model while reinforcing its main offerings. By shedding Del Taco, Jack in the Box intends to streamline its operations and sharpen its focus on its core brand, thereby enhancing operational performance and financial viability.
The Role of Yadav Enterprises Inc.
Yadav Enterprises, headquartered in Fremont, California, boasts an extensive operational footprint with over 310 franchise restaurants under its belt, including notable brands such as Jack in the Box, Denny’s, and TGI Friday’s. Additionally, Yadav owns Taco Cabana, a popular Tex-Mex fast-casual chain with 150 locations, and Nick the Greek, which has 90 locations. Following this acquisition, Yadav Enterprises adds around 575 Del Taco restaurants across 18 states to its growing portfolio.
Jack in the Box’s Business Focus Post-Sale
With the divestiture of Del Taco Holdings Inc., Jack in the Box is positioned to intensify its focus on the Jack in the Box brand, striving to further enhance its operational efficiency and financial strength. This strategic realignment reflects a broader commitment to cultivate growth within its core business, ensuring sustained success in the competitive fast-food sector.
Financial Advisory and Legal Guidance
The entire transaction was advised by BofA Securities Inc., which served as the exclusive financial advisor for Jack in the Box Inc., while Sullivan & Cromwell LLP provided legal counsel to facilitate the sale. The deal is expected to close by January 2026, contingent on customary closing conditions.
Conclusion
Jack in the Box Inc.’s recent sale of Del Taco Holdings Inc. underscores a measured approach to business strategy and debt reduction, highlighting the company’s dedication to strengthening its core operational focus. For residents of San Diego and beyond, the implications of this sale could resonate in terms of economic stability and small-business resilience within the fast-food sector. Supporting local entrepreneurship is crucial as San Diego continues to thrive in its economic journey.
As developments unfold, keeping an eye on such shifts in the local culinary landscape could offer valuable insights into the San Diego County economy. Residents and stakeholders are encouraged to engage with and support local businesses, ensuring a vibrant community atmosphere as the entrepreneurial spirit continues to flourish.
FAQ
What is the value of the sale of Del Taco Holdings Inc.?
The sale was completed for approximately $119 million, which includes $109 million in cash and a $10 million 21-day promissory note with an 8% annual interest rate, fully guaranteed by Anil Yadav, founder and CEO of Yadav Enterprises.
What is the purpose of this sale?
The sale aligns with Jack in the Box’s “Jack on Track” plan, announced in April 2025, which aims to strengthen the company’s balance sheet and transition to a simpler, asset-light business model. The net proceeds from this sale are intended to retire part of Jack in the Box’s existing debt, specifically repaying a portion of the Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II.
Who is Yadav Enterprises Inc.?
Yadav Enterprises, based in Fremont, California, operates over 310 franchise restaurants, including Jack in the Box, Denny’s, and TGI Friday’s; owns Taco Cabana (150 locations) and Nick the Greek (90 locations); adds approximately 575 Del Taco restaurants across 18 states to its portfolio.
What is Jack in the Box Inc.’s current focus after the sale?
By divesting Del Taco Holdings Inc., Jack in the Box intends to refocus on its core brand, Jack in the Box, aiming to enhance operational performance and financial health.
When is the sale expected to close?
The sale is expected to close by January 2026, subject to customary closing conditions.
Who advised Jack in the Box Inc. on this transaction?
BofA Securities Inc. served as the exclusive financial advisor, and Sullivan & Cromwell LLP provided legal counsel to Jack in the Box Inc. in connection with this transaction.
| Feature | Details |
|---|---|
| Sale Value | Approximately $119 million, including $109 million in cash and a $10 million promissory note with an 8% annual interest rate, fully guaranteed by Anil Yadav. |
| Purpose of Sale | Aligns with Jack in the Box’s “Jack on Track” plan to strengthen the balance sheet and transition to a simpler, asset-light business model; net proceeds to retire part of existing debt. |
| Yadav Enterprises Inc. | Based in Fremont, California; operates over 310 franchise restaurants, including Jack in the Box, Denny’s, and TGI Friday’s; owns Taco Cabana (150 locations) and Nick the Greek (90 locations); adds approximately 575 Del Taco restaurants across 18 states to its portfolio. |
| Jack in the Box Inc. Focus | Refocus on core brand, Jack in the Box, to enhance operational performance and financial health. |
| Expected Closing Date | By January 2026, subject to customary closing conditions. |
| Advisors | BofA Securities Inc. as exclusive financial advisor; Sullivan & Cromwell LLP as legal counsel to Jack in the Box Inc. |
Deeper Dive: News & Info About This Topic
HERE Resources
Jack in the Box Sells Del Taco Chain for $115 Million
Jack in the Box Sells Del Taco for $115 Million
Author: STAFF HERE SAN DIEGO WRITER
The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
