What was the net value of Del Taco's intangible assets as of October 1, 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
auditor since 1986.
San Diego, California November 20, 2024
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
| Se | September 29, 2024 | October 1, 2023 | |||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets: | |||||
| Cash | $ | 24,745 | $ | 157,653 | |
| Restricted cash | 29,422 | 28,254 | |||
| Accounts and other receivables, net | 83,567 | 99,678 | |||
| Inventories | 3,922 | 3,896 | |||
| Prepaid expenses | 13,126 | 16,911 | |||
| Current assets held for sale | 16,493 | 13,925 | |||
| Other current assets | 10,002 | 5,667 | |||
| Total current assets | ···· | 181,277 | 325,984 | ||
| Property and equipment, at cost: | |||||
| Land | 93,950 | 92,007 | |||
| Buildings | 963,699 | 968,221 | |||
| Restaurant and other equipment | 171,436 | 166,714 | |||
| Construction in progress | 49,445 1,278,530 | 31,647 1,258,589 | |||
| Less accumulated depreciation and amortization | (848,491) | (846,559 | |||
| Property and equipment, net | 430,039 | 412,030 | |||
| Other assets: | |||||
| Operating lease right-of-use assets | 1,410,083 | 1,397,555 | |||
| Intangible assets, net | 10,515 | 11,330 | |||
| Trademarks |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the net value of intangible assets was $11.330 million as of October 1, 2023. These assets are categorized under 'Other assets' on the balance sheet. Intangible assets typically include items like franchise agreements, trademarks, and other non-physical assets that provide economic value to the company.
For a prospective Del Taco franchisee, understanding the value and composition of these intangible assets is crucial. These assets contribute to the overall financial health and brand strength of Del Taco. The value of intangible assets can fluctuate due to factors like brand performance, market conditions, and strategic decisions made by the company. Goodwill, another intangible asset, was significantly higher at $329.986 million on the same date but is listed separately from 'Intangible assets, net.'
The FDD also provides a breakdown of definite-lived intangible assets, such as sublease assets and franchise contracts. Sublease assets had a net amount of $2,051 thousand as of October 1, 2023, while franchise contracts had a net amount of $8,146 thousand. These assets are subject to amortization, which reduces their value over time. Monitoring these figures can help a franchisee assess the stability and long-term prospects of the Del Taco brand.
It's important for potential franchisees to review the notes to the consolidated financial statements for more detailed information on how these intangible assets are valued and managed. Understanding these assets and their impact on Del Taco's financial performance can inform a franchisee's investment decision and business strategy.