Jack in the Box Sells Del Taco for $115 Million, Embracing Asset-Light Business Model.

Jack in the Box has agreed to sell Del Taco Holdings to Yadav Enterprises for $115 million in cash. The deal is subject to certain adjustments and marks a move towards a simpler, asset-light business model for Jack in the Box. The transaction is expected to be completed in the second quarter of 2023.

Jack in the Box Inc. (NASDAQ: JACK) has announced a definitive agreement to sell Del Taco Holdings Inc. to Yadav Enterprises Inc. for $115 million in cash, subject to certain adjustments. The transaction is expected to close by January 2026, marking a significant step towards a simpler, asset-light business model for Jack in the Box.

Del Taco Holdings Inc., a wholly-owned subsidiary of Jack in the Box, operates and franchises over 550 Del Taco restaurants across the United States. The sale will allow Jack in the Box to strengthen its balance sheet and focus on its core Jack in the Box brand. The net cash proceeds from the sale, after taxes and transaction costs, will be used to retire debt within its securitization structure, specifically to repay part of the existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II.

Jack in the Box acquired Del Taco in March 2022 for approximately $585 million in an all-cash deal, creating one of the largest quick-service restaurant combinations in the United States. The divestiture of Del Taco is seen as a strategic move to simplify Jack in the Box's operations and reduce its asset base.

Lance Tucker, Chief Executive Officer of Jack in the Box Inc., stated, "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."

The transaction is subject to customary closing conditions and is being advised by BofA Securities Inc. as the exclusive financial advisor to Jack in the Box, and Sullivan & Cromwell LLP as its legal counsel. Yadav Enterprises Inc. is represented in this transaction by its General Counsel Steven M. Kries and advised by Baker Tilly.

Jack in the Box intends to provide guidance for fiscal year 2026 and updates to other components of the "Jack on Track" plan in connection with its earnings release on November 19, 2025.