What was the total amount of Del Taco's current operating lease liabilities as of October 1, 2023?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
ated expenses are presented in "Franchise occupancy expenses."
Company as lessee — Leased assets and liabilities consisted of the following as of September 29, 2024 and October 1, 2023 (in thousands):
| September 29, 2024 | October 1, 2023 | |
|---|---|---|
| Assets: | ||
| Operating lease ROU assets | $ 1,410,083 | $ 1,397,555 |
| Finance lease ROU assets (1) | 416 | 971 |
| Total ROU assets | $ 1,410,499 | $ 1,398,526 |
| Liabilities: | ||
| Current operating lease liabilities | . $ 162,017 | $ 142,518 |
| Current finance lease liabilities ( |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, as of October 1, 2023, the company's current operating lease liabilities totaled $142,518. This figure represents the short-term portion of Del Taco's obligations for leases, which are typically for real estate used in the operation of its restaurants.
For a prospective Del Taco franchisee, understanding these lease liabilities is crucial because it reflects the financial obligations Del Taco has for its existing restaurant locations. While franchisees will enter into their own lease agreements for their specific locations, the overall financial health and lease management practices of the franchisor can provide insights into the stability and operational efficiency of the brand.
It's important to note that these liabilities are distinct from long-term operating lease liabilities, which for Del Taco amounted to $1,265,514 on the same date. The current liabilities represent the portion of lease payments due within the next year, while the long-term liabilities cover payments due beyond that period. Reviewing these figures in the context of Del Taco's overall financial statements can help potential franchisees assess the company's financial commitments and how effectively it manages its lease obligations.
Furthermore, the FDD also lists the operating lease right-of-use assets, which were valued at $1,397,555 as of October 1, 2023. These assets represent Del Taco's right to use the leased properties over the lease term. Comparing these assets to the lease liabilities provides a more comprehensive view of Del Taco's leasing strategy and its impact on the company's financial position.