What were the shared services expenses for Del Taco in 2022?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The following table provides information related to our operating segments in each period (in thousands):
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Revenues by segment: | |||||
| Jack in the Box restaurant operations | $ | 1,197,420 | $ | 1,195,311 | $ 1,151,188 |
| Del Taco restaurant operations | 373,886 | 496,995 | 316,895 | ||
| Consolidated revenues | $ | 1,571,306 | $ | 1,692,306 | $ 1,468,083 |
| Segment profit reconciliation: | |||||
| Jack in the Box segment |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the shared services expenses for Del Taco in 2022 were ($107,730). This figure represents the costs allocated to shared services that support both the Jack in the Box and Del Taco brands. These shared services do not include costs related to certain corporate functions which support both brands. These costs are deducted from the segment profit to reflect a more accurate financial performance of the Del Taco segment.
For a prospective franchisee, understanding shared services expenses is crucial because it provides insight into how corporate overhead is allocated and how it impacts the overall profitability of the Del Taco business. These expenses can include various corporate functions such as executive management, finance, human resources, and legal services. The allocation of these costs can affect the financial performance and reported profit of the Del Taco segment.
It is important to note that these shared service expenses are part of a larger segment reporting structure used by Jack in the Box Inc., which assesses each brand's results of operations separately. This structure reflects the company's management approach and how resources are allocated between the Jack in the Box and Del Taco brands. Franchisees should consider these allocated costs when evaluating the potential financial returns of a Del Taco franchise.