Jack in the Box Inc. (NASDAQ:JACK) saw its stock climb 2% on Thursday after announcing a definitive agreement to sell its Del Taco Holdings subsidiary to Yadav Enterprises Inc. for $115 million in cash.
The transaction, expected to close by January 2026, is part of the company’s “Jack on Track” strategic plan unveiled in April. Jack in the Box intends to use the net proceeds after taxes and transaction costs to retire debt within its securitization structure, specifically repaying a portion of its existing Series 2019-1 4.476% Fixed Rate Senior Secured Notes.
“This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand,” said Lance Tucker, Chief Executive Officer of Jack in the Box Inc. “After a robust process, we are confident we have entered into a transaction with the right steward for Del Taco in its next chapter of evolution.”
The sale of Del Taco — which operates and franchises more than 550 restaurants — marks a strategic shift for Jack in the Box as it aims to strengthen its balance sheet and transition to what it calls a “simpler, asset-light business model.”
The transaction is subject to customary closing conditions. Jack in the Box originally acquired Del Taco in 2021, making this divestiture a relatively swift strategic reversal as the company sharpens its focus on its core brand.
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