What shared service functions are not allocated to the Del Taco segment profit?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company measures and evaluates its segments based on segment revenues and segment profit. The reportable segments do not include an allocation of the costs related to shared service functions, such as accounting/finance, human resources, audit services, legal, tax and treasury; nor do they include certain unallocated costs such as share-based compensation. These costs are reflected in the caption "Shared services and unallocated costs."
Beginning in 2025, the Company's measure of segment profit was updated to exclude all of the following items: depreciation and amortization, net other operating expenses, net company-owned life insurance ("COLI") losses (gains), (gains) losses on the sale of company-operated restaurants, net amortization of favorable and unfavorable leases and subleases, amortization of franchise tenant improvement allowances and other, and amortization of cloud-computing costs. Amounts in fiscal year 2024 have been adjusted to reflect the current presentation.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company uses a shared-services model where each brand's results are assessed separately. The segment reporting structure reflects how the company manages its resources. The Del Taco segment profit does not include an allocation of costs related to certain shared service functions. These costs are reported under "Shared services and unallocated costs."
Specifically, the shared service functions not allocated to the Del Taco segment profit include accounting/finance, human resources, audit services, legal, tax, and treasury. Additionally, certain unallocated costs such as share-based compensation are also excluded from the segment profit calculation.
In 2025, Del Taco updated its measure of segment profit to exclude depreciation and amortization, net other operating expenses, net company-owned life insurance losses or gains, gains or losses on the sale of company-operated restaurants, net amortization of favorable and unfavorable leases and subleases, amortization of franchise tenant improvement allowances and other, and amortization of cloud-computing costs. The amounts for fiscal year 2024 have been adjusted to reflect this current presentation.