San Diego — Jack in the Box Inc. has entered into a definitive agreement to sell Del Taco Holdings Inc., a wholly owned subsidiary of the company which operates and franchises more than 550 Del Taco restaurants, to Yadav Enterprises Inc. for $115 million in cash, subject to certain adjustments.
The transaction is expected to close by January 2026. The company expects to use the net cash proceeds after taxes and transaction costs to retire debt within its securitization structure.
In line with the company’s “Jack on Track” plan announced in April, the divestiture of Del Taco allows for the strengthening of the company’s balance sheet and initiates the return of Jack in the Box to a simpler, asset-light business model.
“This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand,” says Lance Tucker, chief executive officer of Jack in the Box Inc. “After a robust process, 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.”
The transaction is subject to the satisfaction or waiver of customary closing conditions.
BofA Securities Inc. is serving as exclusive financial advisor to Jack in the Box, and Sullivan & Cromwell LLP is serving as its legal counsel in connection with this transaction. Yadav Enterprises Inc. is represented by its general counsel, Steven M. Kries, and advised by Baker Tilly.
Jack in the Box Inc., founded and headquartered in San Diego, is a restaurant company that operates and franchises Jack in the Box®, one of the nation’s largest hamburger chains with approximately 2,160 restaurants across 22 states, and Del Taco®, the second largest Mexican-American QSR chain by units in the U.S. with over 550 restaurants across 18 states.
Yadav Enterprises Inc. operates more than 310 franchise restaurants including Jack in the Box, Denny’s and TGI Friday’s, and owns the Taco Cabana brand, a fast-casual, Tex-Mex restaurant chain consisting of 150 locations, and Nick the Greek, a fast-casual, Greek restaurant chain consisting of 90 locations.
SOURCE: Jack in the Box