What were the impairment charges and other expenses for Del Taco in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
r, on an annual basis, or whenever events or changes in circumstances indicate that their carrying value may not be recoverable, non-financial instruments are assessed for impairment. If applicable, the carrying values are written down to fair value.
In connection with our impairment reviews performed during 2025 and 2024, the Company impaired certain Del Taco assets. For further information, see Note 3, Summary of Refranchisings and Assets Held For Sale, Note 5, Goodwill and Intangible Assets, Net, and Note 8, Other Operating Expenses, Net in the notes to the condensed consolidated financial statements.
**8.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, specific details regarding impairment charges can be found in Note 5, Goodwill and Intangible Assets, Net, and Note 8, Other Operating Expenses, Net within the condensed consolidated financial statements. Additionally, costs of closed restaurants and other expenses generally include ongoing costs associated with closed restaurants, cancelled project costs, and impairment charges as a result of decisions to close restaurants. However, the FDD does not provide a specific figure for impairment charges or other expenses for Del Taco in 2023.
While the document mentions impairment reviews performed during 2025 and 2024 that led to the impairment of certain Del Taco assets, it does not explicitly state the amounts of these impairments for 2023. Instead, it refers to specific notes within the financial statements for further details. Without access to these specific notes, it is impossible to determine the exact impairment charges and other expenses for Del Taco in 2023.
A prospective franchisee should request these specific financial statements and notes from Del Taco to fully understand the nature and extent of these charges and expenses. Understanding these figures is crucial for assessing the financial health and stability of the Del Taco franchise system and for making informed investment decisions. It is also important to understand the reasons behind any impairment charges, such as underperforming restaurants or strategic decisions to close locations, as these factors can impact the profitability and growth potential of a franchise.