What is the meaning of 'Consolidated Financial Statements' for Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Nature of operations — Jack in the Box Inc. (the "Company"), together with its consolidated subsidiaries, develops, operates, and franchises quick-service restaurants under the Jack in the Box® and Del Taco® restaurant brands.
As of January 19, 2025, there were 152 company-operated and 2,038 franchise-operated Jack in the Box restaurants and 119 company-operated and 470 franchise-operated Del Taco restaurants.
References to the Company throughout these notes to condensed consolidated financial statements are made using the first person notations of "we," "us" and "our."
Basis of presentation — The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC").
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the 'Consolidated Financial Statements' include the financial results of Jack in the Box Inc. along with its consolidated subsidiaries, including Del Taco. This means that the financial performance of Del Taco is reported as part of the larger Jack in the Box Inc.'s overall financial picture.. The statements are prepared following U.S. Generally Accepted Accounting Principles (GAAP) and are in accordance with the regulations of the Securities and Exchange Commission (SEC).
For a potential Del Taco franchisee, this means the financial statements presented in Item 21 reflect the combined performance of Jack in the Box and Del Taco, offering a view of the financial health of the parent company. These statements include details about revenues, expenses, assets, and liabilities, providing insights into the financial stability of the entire organization. Understanding these consolidated statements can help a franchisee assess the financial resources and overall risk associated with investing in a Del Taco franchise.
The FDD states that the Company acquired Del Taco Restaurants, Inc. on March 8, 2022. As of January 19, 2025, there were 119 company-operated and 470 franchise-operated Del Taco restaurants. The inclusion of Del Taco's performance in the consolidated statements reflects the integrated operations of both brands under Jack in the Box Inc. This integration also means that certain financial aspects, such as debt and equity compensation plans, are managed and reported on a consolidated basis.
Prospective franchisees should review these consolidated statements carefully, paying attention to how Del Taco's performance contributes to the overall financial health of Jack in the Box Inc. It's also important to note that the unaudited pro forma financial information is for informational purposes and may not indicate future results due to various factors, including cost savings, synergies, and integration costs. Therefore, while the consolidated statements provide a comprehensive view, franchisees should consider other factors and seek professional financial advice to fully understand the investment implications.