Core Viewpoint - Jack in the Box has successfully divested its Del Taco brand to Yadav Enterprises for approximately $119 million, marking a strategic move to simplify its business model and improve its balance sheet [1][4]. Group 1: Transaction Details - The definitive agreement for the sale was signed in October 2023, with Del Taco now operating under Yadav Enterprises as part of its franchise portfolio [1]. - Upon completion of the deal, Jack in the Box received around $109 million in cash and a $10 million promissory note with an 8% annual interest rate, guaranteed by Yadav Enterprises' CEO Anil Yadav [3]. - The final deal value may be subject to adjustments based on post-completion working capital calculations [4]. Group 2: Company Background and Future Plans - Del Taco, founded in 1964, operates over 600 outlets across 17 U.S. states, offering a mix of Mexican-inspired and American dishes [2]. - Jack in the Box's CEO stated that the sale represents significant progress in reducing debt and simplifying the business model, aligning with the "Jack on Track" program aimed at achieving an asset-light operating structure [3][4]. - Yadav Enterprises, which now includes Del Taco in its portfolio, operates over 300 franchised restaurants and is the largest franchisee for brands like Jack in the Box, Denny's, and TGI Friday's [5]. Group 3: Advisory and Legal Support - BofA Securities acted as the sole financial adviser to Jack in the Box for this transaction, while Sullivan & Cromwell provided legal advice [6]. - Yadav Enterprises was represented by its general counsel and received advisory support from Baker Tilly [6].