How much was the depreciation and amortization for Del Taco in the fiscal year 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The following table provides information related to our operating segments in each period (in thousands):
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Revenues by segment: | |||||
| Jack in the Box restaurant operations | $ | 1,197,420 | $ | 1,195,311 | $ 1,151,188 |
| Del Taco restaurant operations | 373,886 | 496,995 | 316,895 | ||
| Consolidated revenues | $ | 1,571,306 | $ | 1,692,306 | $ 1,468,083 |
| Segment profit reconciliation: | |||||
| Jack in the Box segment profit | $ | 362,377 | $ | 381,171 | $ 383,794 |
| Del Taco segment profit | 28,968 | 45,730 | 62,353 | ||
| Shared services | (77,138) | (87,862) | (107,730) | ||
| $ | 314,207 | $ | 339,039 | $ 338,417 | |
| Depreciation and amortization | 59,776 | 62,287 | 56,100 | ||
| Acquisition, integration and strategic initiatives | 15,631 | 9,112 | 20,081 | ||
| Share-based compensation | 13,471 | 11,205 | 7,122 | ||
| Net COLI (gains) losses | (14,390) | (5,953) | 9,911 | ||
| Goodwill impairment | 162,624 | ||||
| Gains on the sale of company-operated restaurants | (3,255) | (17,998) | (3,878) | ||
| Gains on acquisition |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the depreciation and amortization expenses for the entire company, including Del Taco, was $62,287,000 in fiscal year 2023. This figure represents the accounting expense recognized for the reduction in value of tangible assets (depreciation) and intangible assets (amortization) over that year. These are non-cash expenses, meaning they don't represent actual cash outflow during the period but reflect the allocation of the cost of assets over their useful lives.
For a prospective Del Taco franchisee, understanding depreciation and amortization is crucial for assessing the overall financial health and profitability of the franchise. While franchisees do not directly pay for the depreciation and amortization of the entire company, these expenses are factored into the overall financial performance of Del Taco, which can impact strategic decisions, such as investments in new technologies or marketing initiatives. A higher depreciation and amortization expense could indicate significant investments in long-term assets, which may eventually benefit franchisees through improved operational efficiencies or enhanced brand recognition.
It's important to note that the depreciation and amortization figure includes all company-operated and franchised Del Taco locations. Franchisees should consider this number in conjunction with other financial metrics, such as revenue and net income, to gain a comprehensive understanding of the company's financial performance. Additionally, prospective franchisees may want to inquire about the specific depreciation methods used by Del Taco and how these methods could impact future financial reporting.