What were the earnings from operations for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
GI6@95G9G B9H
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 earnings from operations for the brand in 2024 were $82,536. This figure represents the profit the company made from its core business activities, specifically the operation of Del Taco restaurants, before taking into account factors such as depreciation, amortization, acquisition-related costs, compensation, and other financial adjustments. This number is an important indicator of the brand's financial health and operational efficiency.
For a prospective franchisee, understanding the earnings from operations provides insight into the potential profitability of the Del Taco system as a whole. While an individual franchisee's earnings will vary based on location, management, and local market conditions, this figure offers a benchmark for assessing the overall financial performance of the Del Taco brand. It demonstrates the brand's ability to generate profit from its operations, which can influence investor confidence and the franchisor's capacity to support its franchisees.
It's important to note that the earnings from operations decreased significantly from 2023, when it was $278,753. This substantial decrease could be a point of concern for potential franchisees, warranting further investigation into the reasons behind the decline. Factors such as increased operating costs, market changes, or strategic decisions by the company could have contributed to this change. Prospective franchisees should seek clarification from Del Taco regarding the factors that impacted the 2024 earnings and the strategies in place to improve future performance.
In addition to the overall earnings from operations, the FDD provides a breakdown of revenues and segment profits for both Del Taco and Jack in the Box. This detailed financial information allows potential franchisees to analyze the performance of each brand separately and understand how they contribute to the company's overall financial results. By examining these figures, prospective franchisees can gain a more comprehensive understanding of the financial dynamics within the Del Taco franchise system.