Key Takeaways
- Jack in the Box will sell its Del Taco holdings for $115 million, ending a two-brand strategy that began in 2022.
- The sale allows the company to focus on its core business and pay off debt.
- The deal highlights a growing trend of restaurant operators simplifying their portfolios amid high costs.
San Diego-based Jack in the Box will sell its Del Taco holdings for $115 million, marking a significant pivot in strategy for its parent company and marking a broader change in how it manages its portfolios.
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The deal, expected to close in early 2026, will transfer nearly 600 Del Taco locations in the U.S. to Yadav’s businesses, one of the nation’s largest multi-brand franchise operators. Yadav Enterprises already owns several major quick-service brands, including Denny’s and El Pollo Loco, giving it the infrastructure and expertise to take on a system the size of Del Taco.
Jack in the Box acquired Del Taco for $575 million in late 2021, hoping to create a two-brand platform that could expand coast to coast. But that acquisition, inflation, labor costs, and interest rates have all climbed sharply — squeezing restaurant margins and making diversification less intense. Now the company is reversing course and focusing on what CEO Darin Harris calls a “return to simplicity.”
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“The sale of Del Taco represents an important step in sharpening our focus on the jack in the box brand,” Harris said. The company noted that the proceeds from the deal will be primarily used to reduce debt and improve the balance sheet.
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Del Taco’s divestment signals a shift in strategy. According to the company’s release, the move is “an important step in the return to simplicity, which we expect to focus on our core Jack in the Box brand.”
With deep experience operating major fast-casual franchises, Yadav plans to leverage scale and operational consistency to drive growth at Del Taco Enterprises. Its existing infrastructure can provide the efficiency to compete more effectively against the National Taco and Burrito chains.
The sale underscores a broader reality across the quick-service industry: Large restaurant operators are choosing to shrink in order to grow. Instead of pursuing diversification, many adjust their portfolios to double down on their most profitable brands. Rising costs, evolving consumer preferences and a more cautious investment climate are pushing enabling companies to focus on clarity rather than complexity.
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