Highlights
- Jack in the Box has agreed to sell Del Taco Holdings Inc. for USD 115m in cash.
- Transaction expected to close by January 2026, subject to customary closing conditions.
- Net proceeds intended to repay part of the company’s Series 2019-1 senior secured notes.
Jack in the Box Inc. (NASDAQ:JACK) has entered into a definitive agreement to sell its wholly owned subsidiary, Del Taco Holdings Inc., to Yadav Enterprises Inc. for USD 115 million in cash, subject to certain adjustments. Del Taco operates and franchises over 550 restaurants across 18 U.S. states.
The transaction is anticipated to close by January 2026, pending customary closing conditions. Jack in the Box plans to use the net proceeds, after taxes and transaction costs, to retire debt within its securitization structure, specifically to repay part of the company’s Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II.
Alignment with “Jack on Track” Plan
The divestiture is part of the company’s “Jack on Track” plan, announced in April, aimed at simplifying operations and transitioning to an asset-light business model. By divesting Del Taco, the Company seeks to boost its balance sheet and focus on its core Jack in the Box brand.
Lance Tucker, CEO of Jack in the Box Inc., commented:
“This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand. 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.
About Jack in the Box and Yadav Enterprises
Jack in the Box Inc. operates and franchises Jack in the Box®, one of the largest hamburger chains in the U.S. 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 fast-casual Tex-Mex chain with 150 locations and Nick the Greek, a fast-casual Greek restaurant chain with 90 locations.