What was the total gain recognized by Del Taco from the acquisition of franchise-operated restaurants for the sixteen weeks ended January 21, 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
which we intend to sell to franchisees and/or sell and leaseback with a third party, and iii) closed restaurant properties which we are marketing for sale.
4. FRANCHISE ACQUISITIONS
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Franchise acquisitions — During the first quarter of 2024, the Company acquired 9 Del Taco franchise restaurants for $0.1 million as part of two separate transactions, and recognized related gains of $2.4 million. This amount is recorded in "Other operating expenses, net" in the accompanying condensed consolidated statements of earnings. The Company did not acquire any Jack in the Box or Del Taco franchise restaurants in the first quarter of 2025. For further information, see Note 8, Other Operating Expenses, Net, 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) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the company recognized a gain on the acquisition of franchise-operated restaurants for the sixteen weeks ended January 21, 2024. The table provided in Item 21 of the FDD summarizes the number of restaurants acquired from franchisees and the gains recognized during this period.
Specifically, the FDD states that during the first quarter of 2024, Del Taco acquired 9 franchise restaurants for $0.1 million as part of two separate transactions, and recognized related gains of $2.4 million. This gain is recorded under "Other operating expenses, net" in the condensed consolidated statements of earnings.
In 2024, Del Taco purchased 10 franchise-operated restaurants for $86 thousand as part of three separate transactions, and recognized related gains of $2.7 million. This indicates that Del Taco sometimes acquires franchise locations, and these acquisitions can result in a recognized gain for the company. However, the FDD also notes that there were no such acquisitions in 2023, suggesting that these transactions are not a regular occurrence.