They just didn’t meat expectations… after years of trying to make it work, a fast food burger chain is finally letting its taco-loving partner go.
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Less than four years after acquiring Del Taco for almost half a billion dollars, Jack in the Box revealed it is selling it for a fraction of that cost. The $115 million deal with Fremont’s Yadav Enterprises signals a significant shift for both brands and highlights the increasingly competitive fast-food market.
This move resets the San Diego-based burger chain. By selling Del Taco, the company plans to pay down debt and refocus on its core strengths: burgers, curly fries, and late-night drive-thrus. This is part of a larger “Jack on Track” turnaround strategy, aiming to simplify the business after several challenging quarters and restaurant closures.
The Popular Fast Food Taco Chain Includes 550 Locations
Jack in the Box is selling Del Taco Holdings Inc. to Yadav Enterprises for $115 million in cash, with the deal expected to close by January 2026. Meanwhile, Yadav, one of Jack’s largest franchisees, already operates over 300 restaurants for brands like Denny’s, TGI Fridays, and El Pollo Loco. The sale includes approximately 550 Del Taco locations, a significant shift for the California-based chain.
“This divestiture is an important step in returning to simplicity, and we look forward to focusing on our core Jack in the Box brand,” CEO Lance Tucker called the move in the press release. “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. We wish Del Taco success as they enter this next chapter.”
This decision comes after Jack in the Box paid $575 million for Del Taco in 2022, aiming to expand into the Mexican-American fast-food market and diversify its menu. However, sales never met expectations. Both brands faced declining traffic, store closures, and stiff competition from rivals like Taco Bell, which dominates the value-meal segment.