Jack in the Box Sells Del Taco

Jack in the Box Inc. (San Diego) has entered a definitive agreement to sell Del Taco Holdings Inc. to Yadav Enterprises Inc. for $115 million in cash. That price tag for the 550-unit chain represents just under 20% of the $585 million Jack in the Box paid for the taco enterprise just 3 years ago.

Jack in the Box said it will use the proceeds to pay down debt. The transaction is expected to close by January 2026.

“This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand,” said Jack in the Box CEO Lance Tucker. “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 sale is part of the 2160-unit burger chain’s “Jack on Track” plan it announced in April. Jack in the Box executives say the divestiture of Del Taco strengthens the company’s balance sheet and initiates the return of Jack in the Box to a simpler, asset-light business model.

Fremont, Calif.-based Yadav currently operates 310-plus franchise restaurants including Jack in the Box, Denny’s and TGI Friday’s. It also owns Taco Cabana, a fast-casual, Tex-Mex restaurant concept with 150 locations, and the 90-unit Nick the Greek fast-casual chain.