Del Taco

Financing

Jack in the Box is confident it can sell the struggling Del Taco

The company said that a sale is the most likely scenario, based on potential interest. Yet it comes despite continued challenges for Del Taco that have hammered profits.

Financing

In the fast-food Mexican sector, there is Taco Bell, and everyone else

The Bottom Line: Jack in the Box’s planned sale of Del Taco highlights the sector’s complexity. Consumers are eating more Mexican. But they’re avoiding fast-food Mexican restaurants. Unless it’s Taco Bell.

The Bottom Line: Jack in the Box is selling Del Taco just three years after buying the Mexican fast-food chain. But it’s not the first company to quickly decide to shed an acquisition. And it won’t be the last.

The fast-food restaurant company has hired an advisor to explore strategic alternatives with its Mexican brand just three years after buying the chain. It also plans to close 150 to 200 locations.

The Bottom Line: The Mexican fast-food chain moved aggressively to terminate an operator just one year after it gave them the right to operate an entire state. And then the lender pulled the plug.

The fast-food burger chain reported better-than-expected sales results last quarter, but its Mexican sister concept could not say the same thing.

The franchisee of the Mexican fast-food chain’s 18 locations in Denver and Colorado Springs closed locations following a bankruptcy and a dispute with the franchisor.

Harris is leaving to take a position “outside of the restaurant industry.” CFO Lance Tucker was named interim principal executive officer.

California’s $20 fast-food wage is costing company restaurants $15 million, and franchisees a lot more. That’s putting a damper on some recent sales improvement.

Profitability for the burger chain and its sister concept, Del Taco, declined in the quarter, thanks to the state’s fast-food wage. But California was one of the company’s best sales markets.

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