Jack In The Box To Sell Del Taco For $115 Million

Jack in the Box Inc. (JACK) on Thursday announced plans to divest its wholly-owned subsidiary Del Taco Holdings Inc. to Yadav Enterprises Inc. for $115 million in cash. 

The transaction is slated to close by January 2026, pending standard closing conditions and regulatory approvals. The firm stated that proceeds from the sale will primarily be directed toward debt reduction within the company’s securitization structure. A part of the proceeds will be used to pay down a portion of the company’s Series 2019-1 4.476% Fixed Rate Senior Secured Notes, Class A-2-II.

Jack in the Box stock traded over 2% higher in Thursday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘high’ message volume levels. 

Del Taco is the second largest Mexican-American quick service restaurant (QSR) chain by units in the U.S., with over 550 restaurants across 18 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,” said CEO of Jack in the Box, Lance Tucker. 

The divestiture is a part of the company’s “Jack on Track” plan announced in April. The plan focuses on becoming a leaner, more asset-light business while refining its restaurant network to emphasize higher-performing locations.

The company plans to issue updated financial guidance for fiscal year 2026 and provide additional details on the “Jack on Track” strategy during its fourth-quarter earnings release scheduled for November 19.

According to Fiscal AI data, analysts anticipate a fourth-quarter (Q4) revenue of $325.27 million. Jack in the Box stock has lost over 58% in the last 12 months. 

Also See: Snowflake Stock Surged 6% Pre-Market Today: What’s The Palantir Angle?

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