The deal with Yadav Enterprises was approximately $119 million

Jack in the Box has completed its sale of Del Taco Holdings to Yadav Enterprises for approximately $119 million. The sale was first announced in October and is part of Jack in the Box’s “Jack on Track” plan first announced in the spring to strengthen the company’s balance sheet and shift toward an asset-light business model.

“Our sale of Del Taco represents meaningful progress in simplifying our business model and reducing our debt. We remain committed to elevating the Jack in the Box brand and improving operational performance to drive sustainable, long-term growth and create value for our shareholders. We appreciate the Yadav team’s partnership during this transition and wish the Del Taco brand well in their next chapter,” Jack in the Box chief executive officer Lance Tucker said in a statement.

In connection with the closing, Jack in the Box received approximately $109 million in cash and the remaining $10 million in the form of a 21-day promissory note, accruing interest at an 8% annual rate, fully guaranteed by Anil Yadav, founder and CEO of Yadav.

Yadav Enterprises operates more than 300 franchise restaurants nationwide.

“For more than five decades, Del Taco has been a beloved restaurant chain supported by loyal guests who have fueled a special and unique culture that continues to set the brand apart,” Yadav said in a statement. “Our recent acquisition of the Del Taco brand aligns perfectly with our long-term growth vision, and we are excited to support the next Del Taco evolution, while honoring the amazing legacy that has defined the brand for more than a half-century.”

Del Taco will remain headquartered in Lake Forest, Calif. Yadav Enterprises’ franchising roster includes Jack in the Box, Denny’s, and TGI Friday’s. It is also the franchisor for Taco Cabana and Nick The Greek.

Jack in the Box acquired Del Taco in March 2022 for approximately $585 million in an all-cash deal.

Contact Alicia Kelso at Alicia.Kelso@informa.com

Source https://www.nrn.com/quick-service/jack-in-the-box-finalizes-sale-of-del-taco