What was the net loss/earnings for Del Taco in 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Revenues by segment: | |||||
| Del Taco restaurant operations | 373,886 | 496,995 | 316,895 | ||
| Segment profit reconciliation: | |||||
| Del Taco segment profit | 28,968 | 45,730 | 62,353 | ||
| Earnings from operations | $ | 82,536 | $ | 278,753 | $ 248,270 |
During the third quarter of 2024, the Company had identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired. As a result, the Company performed a quantitative test over the Del Taco reporting unit, noting that the fair value of the reporting unit was less than the carrying value, which resulted in an impairment of goodwill of $162.6 million at that time.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the earnings from operations for Del Taco in 2024 were $82,536. This figure is in thousands, so the actual earnings were $82,536,000. This is a significant decrease compared to 2023, when the earnings from operations were $278,753,000.
It's important to note that during the third quarter of 2024, the company identified triggering events that indicated the goodwill allocated to the Del Taco reporting unit might be impaired, resulting in an impairment of goodwill of $162.6 million. This impairment significantly impacted the overall financial performance of Del Taco for the year. Additionally, Del Taco's segment profit was $28,968,000 in 2024, compared to $45,730,000 in 2023.
Prospective franchisees should be aware of these fluctuations in profitability and the impact of goodwill impairment on Del Taco's financial statements. While the brand still generated substantial revenue ($373,886,000 in restaurant operations), the reduced earnings and the goodwill impairment suggest potential challenges or changes within the Del Taco business that warrant further investigation. It would be prudent for potential franchisees to discuss these factors with the franchisor to gain a deeper understanding of the brand's financial health and future prospects.