It’s been a scant three years since Jack In The Box bought Del Taco for a whopping $585 million. Now, JITB selling off DT for a scant $115 million. That translates to a loss of about $200,000 for each of the chain’s 550 locations…
Del Taco has a great menu, and a great corporate attitude. So why can’t they
make money and fit into some larger outfit’s corporate framework?
“Jack in the Box Inc. […] today announced that it has entered into a definitive agreement to sell Del Taco Holdings Inc. (“Del Taco”), a wholly owned subsidiary of the Company which operates and franchises more than 550 Del Taco restaurants, to Yadav Enterprises Inc. (‘Yadav’) for $115 million in cash, subject to certain adjustments,” the official news release begins.
The sale closes before the end of January 2026. The divestment of Del Taco is just part of company-wide plan at JITB to slim down, simplify the business model and focus more on Jack’s core business.
Who’s Yadav?
It’s a fast-growing holding company that specializes on fast food restaurants. It’s Linked-in profile reveals: “Yadav Enterprises, Inc. is a restaurant franchisee company with 343 restaurants covering six brands; Jack in the Box, Denny’s, El Pollo Loco, Corner Bakery Cafe, Sizzler and TGI Friday’s. These restaurants are operated throughout Northern California, Texas and six Midwest states.” The corporation is headquartered in Freemeont, CA.
Yadav’s stable of Fast Food brands already includes Jack in the Box, Denny’s, El Pollo Loco, Corner Bakery Cafe, Sizzler and TGI Friday’s.
Observers say we can expect to hear about more Yadav aquisitions over the coming months and years…
My take
JITB seems to think Del Taco is a good fit for Yadav: “we are confident we have entered into a transaction with the right steward for Del Taco in its next chapter of evolution. We wish Del Taco success as they enter this next chapter.”
But the official bumpf fails to underline the fact that Yadav also owns and operates JITB. Which makes Del Taco and its former owner sister companies. Sort of like Tim Horton’s, Popeye’s, Firehouse Subs and Burger King under Restaurant Brands International. That opens the way for inter-brand cooperation in promotions and crossovers. As well as economies when mass purchasing supplies and services. It certainly is a good deal, both for JITB and Del Taco.
But the main point is, Del Taco will sail on, despite recent setbacks. Yadav has been successful in turning failing brands around. And Del Taco is just the kind of challenge it seems to relish.
~ Maggie.