For Del Taco, what was the reported operating lease cost in 2022 (in thousands)?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
et*, in the notes to the condensed consolidated financial statement.
The following table summarizes the number of restaurants acquired from franchisees and the gains recognized for the sixteen weeks ended January 21, 2024 (dollars in thousands):
| Restaurants acquired from Del Taco franchisees | 9 |
|---|---|
| Purchase price (1) | $ (86) |
| Closing and acquis |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
Based on the 2025 Del Taco Franchise Disclosure Document, the operating lease right-of-use assets acquired from Del Taco franchisees in 2022 were valued at $3,211,000, while the operating lease liabilities were ($4,505,000). These figures are part of the purchase price allocation related to restaurants acquired from Del Taco franchisees.
These values reflect Del Taco's financial activities related to franchise acquisitions rather than a general operating lease cost for the entire Del Taco system. The acquisition method of accounting was used to determine these values, relying on fair value estimates that involve significant unobservable inputs.
For a prospective franchisee, this information provides insight into how Del Taco values leases when acquiring franchise-operated restaurants. Understanding these valuations can be helpful in assessing the financial implications of potential future acquisitions or sales of franchised locations. However, it is important to note that these figures are specific to acquisition scenarios and may not directly reflect the ongoing operating lease expenses a franchisee would typically incur.