By SDCN Staff
San Diego, CA–Jack in the Box Incorporated announced that it has entered into a definitive agreement to sell Del Taco Holdings Incorporated, a wholly owned subsidiary of the company, to Yadav Enterprises Incorporated for $115 million in cash, subject to certain adjustments.
Jack in the Box, which is headquartered in San Diego, operates and franchises more than 550 Del Taco restaurants nationwide.
The transaction is expected to close by January 2026. The company expects to use the net cash proceeds after taxes and transaction costs to retire debt within its securitization structure, specifically to repay part of the company’s existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II.
In line with the company’s “Jack on Track” plan announced in April, the divestiture of Del Taco allows for the strengthening of the company’s balance sheet and initiates the return of Jack in the Box to a simpler, asset-light business model.
“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. We wish Del Taco success as they enter this next chapter,” said Lance Tucker, Chief Executive Officer of Jack in the Box Inc.
The transaction is subject to the satisfaction or waiver of customary closing conditions.
BofA Securities Inc. is serving as the exclusive financial advisor to the company, and Sullivan and Cromwell LLP is serving as its legal counsel in connection with the transaction. Yadav Enterprises Inc. is represented in this transaction by its General Counsel, Steven M. Kries, and advised by Baker Tilly.
The company intends to guide for fiscal year 2026 and updates to other components of the “Jack on Track” plan in connection with its earnings release on November 19.
