What were the losses (gains) on the disposition of property and equipment, net, for Del Taco in 2022?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
NGS AND FRANCHISE ACQUISITIONS
Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):
| 202 | 4 | 2023 | 2022 | |
|---|---|---|---|---|
| Restaurants sold to Jack in the Box franchisees | _ | 5 | 15 | |
| Restaurants sold to Del Taco franchisees | 47 | 111 | ||
| Proceeds from the sale of company-operated restaurants (1) | $ 19 | 9,400 | $ 85,221 | $ 6,391 |
| Broker commissions | _ | (1,614) | _ | |
| Net assets sold (primarily property and equipment) | (: | 5,310) | (17,101) | (1,565) |
| Goodwill related to the sale of company-operated restaurants | (6 | 5,835) | (35,544) | (948) |
| Franchise fees | ( | 1,266) | (3,086) | |
| Sublease liabilities, net |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the net loss on the sale of property and equipment in 2022 was $1,565,000. This figure is part of the broader category of 'Net assets sold (primarily property and equipment).' This number reflects the book value of assets that Del Taco disposed of during 2022, less any proceeds received.
For a prospective Del Taco franchisee, this indicates the scale of asset turnover within the Del Taco system. It is important to note that this value is from company-operated restaurants and not franchised locations. Franchisees should be aware of how often Del Taco updates or disposes of equipment, as this could influence future expectations for restaurant maintenance and upgrades.
This information is found within the 'Other Operating Expenses, Net' section of Del Taco's financial statements. Reviewing this section provides insight into the various costs and gains associated with operating company-owned restaurants, which can be useful for understanding the financial dynamics of Del Taco's business model.