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Lake Forest-based Del Taco could be up for sale again as parent Jack in the Box Inc. looks to improve long-term financial performance.
Jack in the Box said on Wednesday it was “exploring strategic alternatives for the Del Taco brand, including a possible divestiture of the business.”
The San Diego-based fast-food chain acquired Del Taco in a $585 million deal back in 2022.
Since then, Jack in the Box had been selling company-owned Del Taco restaurants to new and existing franchisees. There are 589 Del Taco locations as of January.
The parent company is looking to make “an overall return to simplicity,” according to newest Chief Executive Lance Tucker.
“In my time thus far as CEO, I have worked quickly with our teams to conclude that Jack in the Box operates at its best, and maximizes shareholder return potential, within a simplified and asset-light business model,” Tucker, who joined in March after former CEO Darin Harris resigned, said in a statement.
The company reported preliminary second-quarter same-store sales fell 3.6% for Del Taco. The chain is ranked No. 6 on the Business Journal’s list of locally based restaurant companies as of May 2024.