Key Takeaways
- Jack in the Box will sell Del Taco Holdings for $115 million, ending the two-brand strategy it began in 2022.
- The company says the sale allows it to focus on its core business and pay down debt.
- The deal underscores a growing trend of restaurant operators simplifying their portfolios amid high costs.
San Diego-based Jack in the Box announced it will sell Del Taco Holdings for $115 million, a move that marks a significant pivot in strategy for the parent company and underscores a broader shift in how fast-food brands are managing their portfolios.
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The deal, expected to close by early 2026, will transfer nearly 600 Del Taco locations across the U.S. to Yadav Enterprises, one of the nation’s largest multi-brand franchise operators. Yadav Enterprises already owns hundreds of restaurants across several major quick-service brands, including Denny’s and El Pollo Loco, giving it the infrastructure and experience to take over a system of Del Taco’s size.
Jack in the Box acquired Del Taco in late 2021 for roughly $575 million, hoping to create a two-brand platform that could expand coast to coast. But since that acquisition, inflation, labor costs and interest rates have all climbed sharply — squeezing restaurant margins and making diversification less appealing. Now, the company is reversing course and focusing on what CEO Darin Harris called 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 in a statement. The company noted that the proceeds from the deal will primarily go toward debt reduction and balance-sheet improvement.
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The divestiture of Del Taco appears to signal a shift in strategy. According to the company’s release, the move is “an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand.”
With deep experience operating major fast-food franchises, Yadav Enterprises plans to leverage scale and operational consistency to drive growth at Del Taco. Its existing infrastructure could provide the efficiencies Del Taco needs to compete more effectively against national taco and burrito chains.
The sale highlights a broader reality across the quick-service industry: Large restaurant operators are choosing to shrink to grow. Instead of chasing diversification, many are streamlining their portfolios to double down on their most profitable brands. Rising costs, evolving consumer preferences and a more cautious investment climate are pushing companies to focus on clarity, not complexity.
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