What was the amount of depreciation and amortization for Del Taco in January 21?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| January 19, | January 21, | |
|---|---|---|
| 2025 | 2024 | |
| Revenues: | ||
| Company restaurant sales | $ 201,406 | $ 224,040 |
| Franchise rental revenues | 116,546 | 113,196 |
| Franchise royalties and other | 74,034 | 73,330 |
| Franchise contributions for advertising and other services | 77,452 | 76,932 |
| 469,438 | 487,498 | |
| Operating costs and expenses, net: | ||
| Food and packaging | 51,648 | 64,132 |
| Payroll and employee benefits | 70,273 | 73,054 |
| Occupancy and other | 39,146 | 42,053 |
| Franchise occupancy expenses | 78,833 | 72,624 |
| Franchise support and other costs | 5,198 | 5,194 |
| Franchise advertising and other services expenses | 78,998 | 80,234 |
| Selling, general and administrative expenses | 50,672 | 46,365 |
| Depreciation and amortization | 18,270 | 18,473 |
| Pre-opening costs | 1,476 | 465 |
| Other operating expenses, net | 3,519 | 5,170 |
| (Gains) losses on the sale of company-operated restaurants | (2,806) | 254 |
| 395,227 | 408,018 | |
| Earnings from operations | 74,211 | 79,480 |
| Other pension and post-retirement expenses, net | 1,789 | 2,106 |
| Interest expense, net | 24,425 | 24,486 |
| Earnings before income taxes | 47,997 | 52,888 |
| Income taxes | 14,311 | 14,205 |
| Net earnings | $ 33,686 | $ 38,683 |
| Earnings per share: | ||
| Basic | $ 1.77 | $ 1.94 |
| Diluted | $ 1.75 | $ 1.93 |
| Cash dividends declared per common share | ||
| $ 0.44 | $ 0.44 |
Source: Item 23 — RECEIPTS (FDD pages 59–325)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the depreciation and amortization expenses for January 2021 were $18,473. This figure reflects the accounting method of allocating the cost of tangible assets (depreciation) and intangible assets (amortization) over their useful lives.
For a prospective Del Taco franchisee, understanding depreciation and amortization is crucial for assessing the financial health and profitability of the franchisor. While franchisees do not directly incur these expenses at the corporate level, they reflect the capital investments Del Taco has made in its infrastructure and assets. Higher depreciation and amortization expenses might indicate significant investments in equipment, technology, or other assets that could benefit franchisees through improved systems or brand recognition.
It's important to note that depreciation and amortization are non-cash expenses, meaning they do not represent actual cash outflows. However, they do reduce the company's reported net income, which can impact its ability to reinvest in the business or distribute profits. Franchisees should consider these figures in conjunction with other financial metrics to gain a comprehensive understanding of Del Taco's financial performance and stability.
Reviewing trends in depreciation and amortization over time, as presented in the FDD, can provide insights into Del Taco's investment strategies and asset management practices. A consistent or increasing level of these expenses may suggest ongoing investments in maintaining and upgrading its infrastructure, which can ultimately support the long-term success of the franchise system.