Jack in the Box agrees to sell Del Taco Holdings to Yadav Enterprises for US$115M

NORTH AMERICA – Jack in the Box has reached a definitive agreement to sell its wholly owned subsidiary, Del Taco Holdings, to Yadav Enterprises for US$115 million in cash.

Del Taco operates and franchises over 550 outlets, primarily serving Mexican-inspired fast food. The transaction, expected to close by January 2026, marks a strategic move by Jack in the Box to streamline its portfolio and focus on core operations.

Jack in the Box originally acquired Del Taco in 2022 for approximately US$575 million, with the plan to leverage Del Taco’s strong drive-through presence.

However, multiple challenges including intensifying competition, rising ingredient costs, and labor expenses led to consecutive declines in same-store sales.

This divestiture fits into Jack in the Box’s “Jack on Track” plan, which prioritizes an asset-light business model and financial discipline.

Yadav Enterprises, based in Fremont, California, is a seasoned restaurant franchisee operating over 300 locations across brands including Jack in the Box, Denny’s, El Pollo Loco, and Corner Bakery.

Acquiring Del Taco expands Yadav’s portfolio significantly and offers growth opportunities through synergies and market expansion.

CEO Lance Tucker stated, “This divestiture reflects our focus on simplicity and operational agility. We believe Yadav Enterprises is well positioned to take Del Taco forward and unlock its full potential.”

The US$115 million cash proceeds will be used to reduce Jack in the Box’s debt and support ongoing transformation efforts.

The transaction underscores a broader restaurant industry trend where companies refine brand portfolios amid economic and operational pressures.

This move allows both companies to sharpen strategic focus as fast-food operators adjust to evolving consumer demands, delivery trends, and cost challenges across competitive markets.

Jack in the Box has recently invested significantly to improve operational efficiency and financial stability.

Their strategic shift involves focusing more on the core Jack in the Box brand by simplifying their portfolio and reducing debt.

This year, they launched revamped menu items and enhanced digital ordering capabilities to boost customer experience.

Additionally, the company is upgrading store formats and expanding delivery and drive-thru channels to meet evolving consumer preferences.

These efforts align with their “Jack on Track” plan, aimed at returning to an asset-light business model and boosting long-term profitability amid a challenging fast-food market.

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