San Diego — San Diego-based Jack in the Box has entered into a definitive agreement to sell Del Taco Holdings, a wholly owned subsidiary of the company which operates and franchises more than 550 Del Taco restaurants, to Yadav Enterprises for $115 million.
Yadav Enterprises operates more than 310 franchise restaurants, including Jack in the Box, Denny’s and TGI Friday’s. Yadav Enterprises also owns the Taco Cabana brand, a fast-casual, Tex-Mex restaurant chain consisting of 150 locations, and Nick the Greek, a fast-casual, Greek restaurant chain consisting of 90 locations.
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.
In line with the company’s “Jack on Track” plan announced in April, the sale 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.”
BofA Securities Inc. is serving as exclusive financial advisor to Jack in the Box and Sullivan & Cromwell LLP is serving as its legal counsel in the transaction. Yadav Enterprises is represented by its general counsel, Steven M. Kries, and advised by Baker Tilly.