Fremont Company has successfully acquired Del Taco in a cash deal valued at $115 million. This transaction was completed on Thursday, October 16, and marks a significant change in ownership for the fast-food chain. The acquisition sees Del Taco transition from Jack in the Box Inc. to Yadav Enterprises Inc., a well-established restaurant franchisee based in the Bay Area.
Details of the Acquisition
Fremont’s Yadav Enterprises operates over 300 restaurants, encompassing popular brands such as Jack in the Box, Denny’s, and El Pollo Loco. The agreement includes 550 Del Taco outlets and is expected to finalize in January 2026.
Comments from Industry Leaders
Lance Tucker, CEO of Jack in the Box, stated that this divestiture is vital for the company’s aim to simplify its operations. He expressed confidence that Yadav Enterprises will effectively steward Del Taco’s future growth. “We wish Del Taco success as they enter this next chapter,” he noted in a recent press release.
Strategic Restructuring at Jack in the Box
Jack in the Box is currently implementing a restructuring strategy. Earlier in April, the company announced plans to close between 150 and 200 underperforming stores. This initiative, known as the “Jack on Track” plan, aims to enhance the chain’s long-term financial health.
Financial Implications of the Sale
The sale to Yadav Enterprises occurred at a significantly lower price compared to the $585 million Jack in the Box paid for Del Taco in 2022. However, the proceeds from this transaction are anticipated to alleviate company debt and aid in transitioning to a more streamlined, asset-light operational model.
Background of Yadav Enterprises
- Founded: 1989 in Fremont
- CEO: Anil Yadav, who has a history with Jack in the Box since 1984
- Franchises: Included Corner Bakery and TGI Fridays among others
- Jack in the Box Locations: Over 200 locations operated as of 2021
This acquisition signals a notable shift in the competitive landscape of the fast-food industry as Yadav Enterprises prepares to embark on its new journey with Del Taco.
