Jack in the Box Inc. (NASDAQ: JACK) today announced that it has entered into a definitive agreement to sell its wholly‑owned subsidiary Del Taco Holdings Inc. to Yadav Enterprises Inc. for $115 million in cash, subject to customary closing conditions. The transaction is expected to close by January 2026 and will involve the transfer of more than 550 Del Taco restaurants, both company‑owned and franchised.
The company plans to use the net cash proceeds, after taxes and transaction costs, to retire debt within its securitization structure, specifically to repay part of the Series 2019‑1 4.476% Fixed‑Rate Senior Secured Notes, Class A‑2‑II. This move is a core component of Jack’s “Jack on Track” plan, which aims to simplify the business model and strengthen the balance sheet by shifting toward an asset‑light structure.
Lance Tucker, Jack’s Chief Executive Officer, said, “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.” The agreement is subject to customary closing conditions and is supported by BofA Securities as exclusive financial advisor and Sullivan & Cromwell as legal counsel.
Yadav Enterprises Inc., the buyer, operates more than 310 franchise restaurants, including Jack in the Box, Denny’s, and TGI Friday’s, and owns the Taco Cabana and Nick the Greek chains. The sale is expected to provide Jack with a significant cash infusion, reduce leverage, and allow the company to refocus resources on its core brand while maintaining a simpler, more efficient operating model.
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