Done Deal: Jack in the Box sells Del Taco for $119 million
The nation’s second-largest Mexican quick-serve restaurant officially has new owners.
Jack in the Box Inc. has completed the sale of Del Taco Holdings Inc. to Yadav Enterprises for approximately $119 million in consideration, subject to post-closing working capital and other adjustments. Yadav Enterprises, which operates more than 300 franchise restaurants nationwide, now adds Del Taco’s nearly 600 locations across 17 states to its portfolio.
The deal was first announced in October. The burger giant in April said it was exploring the sale of Del as part of a plan to strengthen its balance sheet and return Jack in the Box to a simpler, “asset-light” business model.
Jack in the Box Inc. acquired Del Taco in 2022 for approximately $585 million.
“Our sale of Del Taco represents meaningful progress in simplifying our business model and reducing our debt,” said Lance Tucker, who was appointed CEO of Jack in the Box Inc. in April. “We remain committed to elevating the Jack in the Box brand and improving operational performance to drive sustainable, long-term growth and create value for our shareholders. We appreciate the Yadav team’s partnership during this transition and wish the Del Taco brand well in their next chapter.”
Del Taco, which was founded in 1964, will remain headquartered in Lake Forest, Calif. In addition to being the largest Jack in the Box, Denny’s and TGI Friday’s franchisee, Yadav Enterprises also is the franchisor for Taco Cabana, a Mexican-inspired dining chain with 150 locations throughout Texas, and Nick The Greek, a Mediterranean fast-casual concept with more than 90 restaurants and growing.
“For more than five decades, Del Taco has been a beloved restaurant chain supported by loyal guests who have fueled a special and unique culture that continues to set the brand apart,” said Anil Yadav, CEO of Yadav Enterprises. “Our recent acquisition of the Del Taco brand aligns perfectly with our long-term growth vision, and we are excited to support the next Del Taco evolution, while honoring the amazing legacy that has defined the brand for more than a half-century.”
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BofA Securities Inc. served as exclusive financial advisor to Jack in the Box Inc., and Sullivan & Cromwell LLP served as its legal counsel in connection with the transaction. Yadav Enterprises Inc. was represented by its general counsel Steven M. Kries and advised by Baker Tilly.
Headquartered in San Diego, Jack in the Box Inc. operates approximately 2,135 restaurants across 21 states.
