What was the reported interest cost for Del Taco's Qualified Plan in 2022?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
Accumulated benefit obligation | $ 57,097 | $ 53,513 | | Fair value of plan assets | $ _ | $ |
Net periodic benefit cost — The components of the fiscal year net periodic benefit cost were as follows (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Qualified Plan: |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the interest cost for their Qualified Plan in 2022 was $12,506. This figure represents the cost of interest related to Del Taco's employee retirement or benefit plans.
For a prospective franchisee, understanding these figures provides insight into the company's financial obligations and how they manage employee benefits. While franchisees are typically not directly involved in managing these plans, the overall financial health of the franchisor, as reflected in these costs, can impact the support and resources available to franchisees.
The table also includes the 'Expected return on plan assets' and 'Actuarial loss' related to the Qualified Plan. These figures, along with the interest cost, contribute to the 'Net periodic benefit (credit) cost,' which gives a more complete picture of the financial impact of these plans on Del Taco's financial statements. Reviewing these trends over the three years (2022-2024) can offer a glimpse into the stability and management of Del Taco's employee benefit programs.
It is important to note that these costs are part of the overall financial picture of Del Taco and should be considered alongside other financial metrics when evaluating the franchise opportunity. While the franchisee may not directly deal with these specific costs, a financially stable franchisor is better positioned to support its franchisees.