Jack in the Box, the San Diego-based fast-food chain that sells burgers and curly fries from drive-through windows, is selling its entire stake in its subsidiary Del Taco.
Fremont, Calif.-based Yadav Enterprises will acquire Del Taco for $115 million in cash in a deal that includes more than 550 Del Taco restaurants.
Yadav Enterprises already has more than 300 franchise restaurants, including Jack in the Box, Denny’s and TGI Friday’s locations.
Jack in the Box plans to use the proceeds from the sale to pay off debt, the company said in a statement. The transaction is expected to close in 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,” Jack in the Box chief executive Lance Tucker said in the release. “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 of Del Taco is in line with Jack in the Box’s “Jack on Track” revamp, announced in April to strengthen the company’s balance sheet and lighten its assets, the company said.
Jack in the Box has more than 2,100 locations in 22 states and got its start selling burgers in Southern California in 1951. The chain bought Del Taco in 2022 for around $575 million in an attempt to diversify its portfolio.
Del Taco, which sells Mexican fast food such as tacos, burritos and guacamole, has struggled recently and temporarily closed down nearly all of its Colorado locations. Tucker, who took over as Jack in the Box chief executive in March, included a sale of Del Taco in his restructuring plan.
Yadav Enterprises, which is one of Jack in the Box’s franchisees, also owns fast-casual restaurants such as Nick the Greek and Taco Cabana.
Anil Yadav, chief executive of Yadav Enterprises, reportedly got his start in the restaurant industry at age 17 as a fry cook at a California Jack in the Box.
Jack in the Box also sells smoothies, tacos and mozzarella sticks to customers who often order from their cars.
The company’s stock closed at $17.06 on Friday, down 3% for the day and 58% so far this year.
In August, Jack in the Box posted its worst quarter in several years, with revenue falling 10% to $333 million in the third quarter from the same period a year ago.
A few months before, in April, the chain announced it would close up to 200 underperforming locations.
The post Jack in the Box sells its stake in Del Taco for $115 million appeared first on Los Angeles Times.
