Overview

• The cash deal transfers more than 550 Del Taco restaurants to the Fremont, California-based operator, with closing targeted by January 2026.
• Jack in the Box said it will use net proceeds to pay down securitized debt, including a partial repayment of its 2019-1 4.476% Class A-2-II notes.
• Shares of Jack in the Box fell about 9% in Thursday trading after the announcement, recently at $17.53.
• CEO Lance Tucker framed the divestiture as part of the Jack on Track plan to refocus on the core brand.
• The sale follows Jack in the Box’s 2022 purchase of Del Taco for $575 million and turns the chain over to Yadav, which runs 310 franchises and owns Taco Cabana and Nick the Greek.