What was the increase in notes and accounts receivable from the sale of restaurant properties for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
indemnity from the Buyer. The Company has not recorded a liability for these guarantees as we believe the likelihood of making any future payments is remote.
17. SUPPLEMENTAL CONSOLIDATED CASH FLOW INFORMATION (in thousands)
| 2024 | 024 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash paid during the year for: | |||||
| Income tax payments | $ 102,512 | $ | 17,811 | $ | 33,819 |
| Interest payments | $ 76,541 | $ | 78,958 | $ | 70,475 |
| Non-cash investing and financing transactions: | |||||
| Increase in notes and accounts receivable from the sale of restaurant properties | $ 1,400 | $ | $ | 10,001 | |
| Increase in dividends accrued or converted to common |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the increase in notes and accounts receivable from the sale of restaurant properties in 2024 was $1,400. This figure reflects the receivables generated from selling restaurant properties, which Del Taco may finance for the buyers, creating notes and accounts receivable. This is part of Del Taco's investing and financing activities.
For a prospective franchisee, this indicates Del Taco's involvement in refranchising activities, where they sell existing company-owned restaurants to franchisees. The $1,400 increase suggests that Del Taco facilitated the sale of restaurant properties by providing financing, which resulted in notes and accounts receivable. This could mean that Del Taco is actively restructuring its operations by shifting ownership to franchisees.
It's important to note that the table also shows an increase in dividends accrued or converted to common stock equivalents of $271 in 2024. Additionally, there was a decrease in obligations for purchases of property and equipment, amounting to $2,482. These figures provide a broader view of Del Taco's financial transactions during the year. The absence of a corresponding value for 2023 in the table for the increase in notes and accounts receivable makes it difficult to assess the year-over-year change directly from this table alone.
Overall, the increase in notes and accounts receivable from the sale of restaurant properties reflects Del Taco's strategy in managing its assets and expanding its franchise network. Prospective franchisees should consider these financial activities as part of their due diligence, understanding how Del Taco manages its refranchising efforts and the financial implications involved.