What financial statements are presented for Del Taco in this section?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
For the periods subsequent to the acquisition that are included in 2022, Del Taco had total revenues of $316.9 million and net earnings of $6.5 million.
The unaudited pro forma financial information for all periods presented includes the business combination accounting effects resulting from this acquisition, mainly including adjustments to reflect additional amortization expense from acquired intangibles, incremental depreciation expense from the fair value property and equipment, elimination of historical interest expense associated with both Del Taco's and the Company's historical indebtedness, additional interest expense associated with the new Del Taco revolving credit facility and the Company's new borrowings as part of the refinancing to fund the acquisition, adjusted rent expense reflecting the acquired right-of-use assets and liabilities to their estimated acquisition-date values based upon valuation of related lease intangibles and remaining payments, as well as the fair value adjustments made to leasehold improvements, certain material non-recurring adjustments and the tax-related effects as though Del Taco was combined as of the beginning of fiscal 2021. The unaudited pro forma financial information as presented above is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of fiscal 2021, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, cost savings from operating efficiencies, potential synergies, and the impact of incremental costs incurred in integrating the two brands.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 FDD, Item 21 includes the financial statements of Jack in the Box Inc. and its subsidiaries, which includes Del Taco. The financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The document includes consolidated balance sheets, consolidated statements of operations, consolidated statements of cash flows, and consolidated statements of equity.
The FDD also presents unaudited pro forma combined financial information, presenting the company's results as though Del Taco and the Company had been combined as of the beginning of fiscal year 2021. This includes adjustments to reflect amortization expense, depreciation expense, interest expense, and rent expense. For the period subsequent to the acquisition that are included in 2022, Del Taco had total revenues of $316.9 million and net earnings of $6.5 million.
These financial statements offer prospective Del Taco franchisees insight into the financial health and performance of both the parent company and the Del Taco brand. Reviewing these statements can help potential franchisees assess the financial stability of the franchisor and understand Del Taco's revenue and earnings trends. However, the pro forma information is for informational purposes only and is not necessarily indicative of future results.