""The San Diego-headquartered restaurant giant announced Thursday it is selling its entire Del Taco chain to Yadav Enterprises, one of Jack in the Box's franchisees, for $115 million in cash. Jack in the Box management said the deal will bolster its bottom line by retiring debt and move the company "to a simpler, asset-light business model" as part of its "Jack on Track" plan that it rolled out to investors in April, aimed at improving long-term financial performance.""
""This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand," company CEO Lance Tucker said in a news release announcing the sale. The transaction is expected to be completed by January. Founded in 1964, Del Taco is the second-largest Mexican American quick-service food chain in the U.S., with more than 550 restaurants in 18 states."
Jack in the Box sold Del Taco to Yadav Enterprises for $115 million in cash. Management said the sale will bolster profitability by retiring debt and shifting to a simpler, asset-light business model under the "Jack on Track" plan. The transaction is expected to close by January. Del Taco, founded in 1964, operates more than 550 restaurants across 18 states. Yadav Enterprises runs over 310 franchise locations and owns Taco Cabana (150 locations) and Nick the Greek (90 locations). Anil Yadav began as a 17-year-old fry cook at Jack in the Box. Jack in the Box purchased Del Taco for $575 million three years ago. Industry observers cited rising California minimum wages and a restaurant slowdown as financial headwinds.
Read at The Mercury News
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