What was the share-based compensation expense for Del Taco in 2022?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
pense** — The components of share-based compensation expense, included within "Selling, general, and administrative expenses" in our consolidated statements of earnings, in each fiscal year are as follows (in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Nonvested restricted stock units | $ 10,128 | $ 7,598 | $ 4,544 |
| Stock options | 4 | 19 | |
| Performance share awards |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total share-based compensation expense for the company in 2022 was $7,122,000. This figure represents the total cost recognized by the company for equity-based compensation plans during that fiscal year. These plans may include stock options, restricted stock units, and performance share awards granted to employees and executives.
Share-based compensation is a common practice among publicly traded companies like Del Taco, as it aligns the interests of employees and shareholders by incentivizing employees to contribute to the company's long-term success. The expense is recognized over the period in which the employees are required to provide service in exchange for the equity awards.
For a prospective Del Taco franchisee, understanding the company's share-based compensation practices may not have a direct impact on their day-to-day operations. However, it provides insight into the company's overall financial health and its approach to employee compensation and incentives. This can be a useful factor when evaluating the stability and long-term prospects of the franchise system.