Jack in the Box to Continue Franchise Expansion with Del Taco Stores

Quick-serve chain Jack in the Box (NASDAQ: JACK) is expected to continue franchising its Del Taco stores, with analysts expecting 117 of the company’s current 171 company-operated Del Taco restaurants to be franchised by 2028. Jack in the Box started working to sell its Del Taco restaurants to franchisees following its March 2022 acquisition of the restaurant chain, in part aimed at retaining access to securitized debt. In 2023, the company outlined its strategy to update the branding of both its Jack in the Box and Del Taco restaurants with plans to transition into a more franchised, asset-light business.

According to Visible Alpha consensus, by 2028, 92% of the company’s approximately 3,045 restaurants are projected to be franchised. As the quick-serve restaurant increases its Del Taco franchise stores, Del Taco franchise sales in 2024 are expected to rise by +31% year over year, reaching $712 million. Meanwhile, revenue from Del Taco’s company-operated restaurants is estimated to decline by -33%, down to $288 million, in the same year.

Sector: Consumer Services
Industry: Restaurants & Bars
Ticker: JACK