What was the depreciation and amortization expense for Del Taco in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The following table provides information related to our operating segments in each period (in thousands):
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Revenues by segment: | |||||
| Jack in the Box restaurant operations | $ | 1,197,420 | $ | 1,195,311 | $ 1,151,188 |
| Del Taco restaurant operations | 373,886 | 496,995 | 316,895 | ||
| Consolidated revenues | $ | 1,571,306 | $ | 1,692,306 | $ 1,468,083 |
| Segment profit reconciliation: | |||||
| Jack in the Box segment profit | $ | 362,377 | $ | 381,171 | $ 383,794 |
| Del Taco segment profit | 28,968 | 45,730 | 62,353 | ||
| Shared services | (77,138) | (87,862) | (107,730) | ||
| $ | 314,207 | $ | 339,039 | $ 338,417 | |
| Depreciation and amortization | 59,776 | 62,287 | 56,100 | ||
| Acquisition, integration and strategic initiatives | 15,631 | 9,112 | 20,081 | ||
| Share-based compensation | 13,471 | 11,205 | 7,122 | ||
| Net COLI (gains) losses | (14,390) | (5,953) | 9,911 | ||
| Goodwill impairment | 162,624 | ||||
| Gains on the sale of company-operated restaurants | (3,255) | (17,998) | (3,878) | ||
| Gains on acquisition |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the depreciation and amortization expense for Del Taco in 2023 was $62,287.
Depreciation and amortization are accounting methods used to allocate the cost of tangible assets (like equipment and buildings) and intangible assets (like patents and trademarks) over their useful lives. For franchisees, this figure reflects the expense recognized each year as these assets 'wear out' or become obsolete. It's a non-cash expense, meaning it doesn't involve an actual outflow of cash, but it does reduce the company's reported profit.
Understanding depreciation and amortization can help a prospective Del Taco franchisee assess the profitability and asset management strategies of the company. While it doesn't directly impact cash flow, it affects net income and can influence decisions about capital expenditures and asset replacement. Franchisees may want to compare these figures with those of similar franchise systems to gauge Del Taco's investment in and management of its assets.