CALIFORNIA — Jack in the Box Inc. announced on October 16 that it has agreed to sell its subsidiary, Del Taco Holdings Inc. — owner of more than 550 restaurants, to Yadav Enterprises Inc. for $115 million in cash.
The transaction, expected to close by January 2026, aligns with Jack in the Box’s “Jack on Track” plan — a strategy to streamline operations and return to an asset-light business model.
The company plans on using part of the proceeds from the Del Taco sale to pay down its older, higher-interest long-term debt.
Jack in the Box CEO Lance Tucker said the sale marks a key move toward simplifying operations and refocusing on the company’s core Jack in the Box brand.
“We wish Del Taco success as they enter this next chapter,” he said.
Del Taco was underperforming
Jack in the Box originally acquired Del Taco in 2022 for approximately $585 million, a move that aimed to diversify its menu and strengthen its presence in the Mexican quick-service category.
The pending sale of Del Taco follows a period of underperformance which had weighed on the company’s overall profitability.
In a recent earnings call, Jack in the Box leadership acknowledged “declining margins” tied to Del Taco.
Analysts say the sale will remove Del Taco’s revenue from Jack in the Box’s financials but boost overall profitability by shedding an underperforming asset.
Yadav owns 310 franchise restaurants
Founded and headquartered in San Diego, Jack in the Box operates about 2,160 restaurants across 22 states.
Yadav Enterprises, based in Northern California, operates more than 310 franchise restaurants — including Jack in the Box, Denny’s, and TGI Friday’s — and owns Taco Cabana and Nick the Greek.
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