For Del Taco, what was the income tax at the federal statutory rate in 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
e (benefit) for income taxes differs from the amount computed by applying the U.S. federal statutory rate to pretax income (loss). The sources and tax effects of the differences are as follows (in thousands):
| 2024 | ı | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|---|
| Pre-tax income (loss) | $ (4,323) | $ | 189,340 | $ 161,892 | |||
| Income tax at federal statutory rate | (908) | 21.0 % | 39,821 | 21.0 % | 33,964 | 21.0 % | |
| State income taxes, net of federal benefit | (233) | 5.4 % | 10,587 | 5.6 % | 8,437 | 5.2 % | |
| Stock-based compensation expense | 51 | (1.2)% | 71 | — % | 122 | 0.1 % | |
| Tax credits, net of valuation allowance | (340) | 7.9 % | (818) | (0.4)% | (906) | (0.6)% | |
| Nondeductible goodwill related to impairment | 35,075 | (811.5)% | _ | — % | _ | — % | |
| Nondeductible goodwill related to the sale of company-operated restaurants | 1,787 | (41.3)% | 9,280 | 4.9 % | _ | — % | |
| Nondeductible transaction costs | _ | — % | _ | — % | 940 | 0.6 % | |
| Expense (benefit) related to COLIs | (4,703) | 108.8 % | (1,947) | (1.0)% | 3,319 | 2.1 % | |
| Officers' compensation |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the income tax at the federal statutory rate was $39,821 in 2023. This figure is based on a rate of 21.0%. This is part of a larger table that reconciles pre-tax income (loss) to the effective tax rate.
This information is useful for prospective franchisees as it provides insight into Del Taco's tax obligations and how they are calculated. Understanding the federal statutory rate and other tax-related factors can help franchisees better assess the financial health and profitability of the company. It also allows them to compare Del Taco's tax situation with other franchise opportunities they may be considering.
It's important to note that this is just one component of Del Taco's overall tax picture. The table also includes details on state income taxes, tax credits, and other items that can impact the effective tax rate. Reviewing the entire table and the accompanying notes can provide a more comprehensive understanding of Del Taco's tax situation. Franchisees should consult with a financial advisor to fully understand the implications of these figures.