Jack in the Box to divest Del Taco to Yadav Enterprises for $115m

Core Insights - Jack in the Box has agreed to sell its subsidiary Del Taco Holdings to Yadav Enterprises for $115 million in cash, with the deal expected to close by January 2026 [1][2] - The sale is part of a strategic review initiated in April 2025 and aligns with the company's Jack on Track plan [2][3] - Jack in the Box aims to simplify its business and transition to a more asset-light model through this divestiture [3] Financial Details - Jack in the Box acquired Del Taco for $575 million in 2022, intending to leverage its strong drive-through presence [2] - The net cash proceeds from the sale will be used to pay down debt within the company's securitization structure [1] Strategic Context - The divestiture follows challenging quarters for Jack in the Box due to a slowdown in demand and increased competition in the fast-food industry [2] - CEO Lance Tucker emphasized the importance of this divestiture in returning to simplicity and focusing on the core Jack in the Box brand [3] Advisory and Future Plans - BofA Securities served as the exclusive financial adviser for Jack in the Box, while Sullivan & Cromwell provided legal counsel [3] - Jack in the Box plans to provide fiscal 2026 guidance and updates on the Jack on Track plan during its earnings release on November 19, 2025 [4]