What was the effective tax rate for Del Taco in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Deferred tax assets as of September 29, 2024 include state gross net operating loss carryforwards of approximately $11.4 million, of which $9.1 million has an indefinite carryforward. The remainder will expire at various times between 2026 and 2042. At September 29, 2024, California Enterprise Zone Credit carryforwards expired, and the Company released $1.0 million of deferred tax assets and $1.0 million of valuation allowances thereto. We believe it is more likely than not that all other deferred tax assets will be realized through future taxable income or alternative tax strategies.
Defined contribution plans — At the beginning of fiscal year 2024, we maintained two qualified savings plans pursuant to Section 401(k) of the Internal Revenue Code ("IRC"); the Jack in the Box Inc. Easy$aver Plus Plan and the Del Taco Savings Plan. Effective January 1, 2024, the Del Taco Savings Plan was merged into the Easy$aver Plus Plan so that now we maintain one qualified savings plan. The plan allows all employees who meet certain age and minimum service requirements to defer a percentage of their pay on a pre-tax basis. Our contributions under these plans were $3.3 million, $2.3 million, and $2.1 million in each fiscal years 2024, 2023 and 2022, respectively.
As of September 29, 2024, there was no unrecognized compensation cost related to nonvested stock awards. The total fair value of awards that vested and were released during fiscal 2023 was $0.4 million.
The weighted-average grant date fair value of awards granted was $70.19, $65.74, and $78.95 in fiscal years 2024, 2023, and 2022, respectively.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the effective tax rate for 2023 is not explicitly stated. However, the document does provide information regarding deferred tax assets and activity related to retirement plans. Specifically, the document mentions that in fiscal year 2023, Del Taco's contributions to defined contribution plans totaled $2.3 million.
Furthermore, the document discusses nonvested restricted stock awards, stating that the total fair value of awards that vested and were released during fiscal year 2023 was $0.4 million. Additionally, the weighted-average grant date fair value of awards granted was $65.74 in fiscal year 2023.
While these figures provide some insight into Del Taco's financial activities, they do not allow for the calculation of the effective tax rate. To determine the effective tax rate, a prospective franchisee would need to request additional financial information from the franchisor, specifically focusing on income tax expenses and pre-tax income for the relevant period.