News Summary
Jack in the Box is divesting its Del Taco chain, selling it for $115 million to Yadav Enterprises as part of its strategy to improve financial performance. This move follows the previous acquisition of Del Taco in 2022 for $575 million, which faced criticism from analysts. The sale is expected to finalize by January 2026 and may lead to the shutdown of underperforming locations. Jack in the Box operates over 2,160 restaurants, and this divestment aims to simplify its business model in a challenging economic landscape for quick-service restaurants.
San Diego – Jack in the Box is divesting its entire Del Taco chain, selling it for $115 million in cash to Yadav Enterprises, a franchisee operating various restaurant brands. This move is part of Jack in the Box’s “Jack on Track” plan, which aims to enhance long-term financial performance. The transaction is anticipated to finalize by January 2026.
Del Taco, founded in 1964, holds the position of the second-largest Mexican American quick-service food chain in the United States, currently operating over 550 restaurants across 18 states. Yadav Enterprises, which manages more than 310 franchise restaurants, is recognized for its affiliations with Jack in the Box, Denny’s, and TGI Friday’s. The enterprise also owns the Tex-Mex chain Taco Cabana, which has 150 locations, and Nick the Greek, which comprises 90 locations.
At the helm of Yadav Enterprises is CEO Anil Yadav, who began his career as a fry cook at Jack in the Box at age 17. The acquisition of Del Taco by Jack in the Box was completed in 2022 for $575 million, a decision later criticized by financial analyst John Gordon as a poor business move. The quick-service restaurant industry is currently encountering significant financial pressures, including increasing minimum wage laws in California, which have reached $20 per hour.
Following the announcement of the sale, Jack in the Box’s stock witnessed a decline of 8.66%, dropping to $17.61 per share. CEO Lance Tucker indicated that shedding Del Taco is a crucial step towards simplifying the company’s business model. There are considerations that Yadav Enterprises may shut down underperforming Del Taco locations, specifically those outside Southern California. Previously, Del Taco had closed nearly all of its Colorado establishments but later reopened 17 locations.
Jack in the Box operates approximately 2,160 restaurants in 22 states. The decision to sell Del Taco aligns with broader industry challenges faced by quick-service restaurants, as they attempt to navigate an evolving economic landscape.
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Additional Resources
- USA Today: Jack in the Box sells Del Taco
- Wikipedia: Jack in the Box
- Restaurant Dive: Jack in the Box sells Del Taco
- Google Search: Del Taco
- Jack in the Box Investor News
- Encyclopedia Britannica: Fast Food
- Fox 5 San Diego: Jack in the Box sells Del Taco
- Google Scholar: Quick Service Restaurant
- Restaurant Business Online: Jack in the Box sells Del Taco
- Google News: Jack in the Box
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