Jack In The Box Sells Del Taco Chain For $115 Million — A Massive Loss

CALIFORNIA — Jack in the Box Inc. has announced the sale of Del Taco Holdings, Inc., for $115 million in cash and certain adjustments, according to a Friday news release.

The sale was at a significant loss, as the franchise originally purchased Del Taco in March of 2022 for $585 million.

The transfer of ownership to Yadav Enterprises, Inc. is expected in early January. The Del Taco buyer also owns 310 fast-food and fast-casual franchises, 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 will add over 590 Del Taco restaurants to its arsenal.

The transaction is subject to the satisfaction or waiver of customary closing conditions.

Jack in the Box is selling the restaurants to keep up with its "Jack on Track" plan announced in early 2025, according to Chief Executive Officer Lance Tucker.

“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” he said, saying the program would return Jack in the Box to the simplicity of the original business model.

Del Taco, a Mexican-American quick service restaurant chain, has over 590 locations in more than 15 states.

“This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand," Tucker said. "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.”