Jack in the Box sells entire stake of Del Taco

SAN DIEGO (FOX 5/KUSI) -- Jack in the Box, founded and headquartered in San Diego, will no longer own Del Taco after selling the fast food chain to Yadav Enterprises for $115 million in cash.

The agreement will go through by January 2026, Jack in the Box said in a news release Thursday.

Jack in the Box owns and operates more than 550 Del Taco restaurants. The company said it expects to use the net cash proceeds after taxes and transaction costs to retire debt within its securitization structure.

“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. We wish Del Taco success as they enter this next chapter.”

Yadav Enterprises operates over 310 franchise restaurants including Jack in the Box, Denny’s and TGI Friday’s. It also owns the Tex-Mex restaurant chain Taco Cabana and Greek restaurant chain Nick the Greek.

Del Taco is the second largest Mexican-American Quick Service Restaurant (QSR) chain by units in the U.S. with over 550 restaurants across 18 states.