What was the total value of Del Taco's treasury stock as of January 21, 2024?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
| Net earnings | — | — | — | 33,686 | — | — | 33,686 | | Other comprehensive income | — | — | — | — | 595 | — | 595 | | Balance at January 19, 2025 | 82,971 | $ 829 | $ 537,568 | $ 1,891,977 | $ (56,880) | $ (3,200,625) | $ (827,131) |
| Number of Shares | Amount | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |
|---|---|---|---|---|---|---|---|
| Balance at October 1, 2023 | 82,646 | $ 826 | $ 520,076 | $ 1,937,598 | $ (51,790) | $ (3,125,037) | $ (718,327) |
| Shares issued under stock plans, | 107 | 1 | — | — | — | — | 1 |
| including tax benefit | |||||||
| Share-based compensation | — | — | 4,820 | — | — | — | 4,820 |
| Dividends declared | — | — | 74 | (8,726) | — | — | (8,652) |
| Purchases of treasury stock | — | — | — | — | — | (25,166) | (25,166) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to Del Taco's 2025 Franchise Disclosure Document, the total value of the company's treasury stock as of January 21, 2024, was approximately $3,150,203. This figure represents the cumulative value of shares that Del Taco has repurchased from the open market or from its shareholders. Treasury stock is recorded as a contra-equity account, meaning it reduces the total equity of the company.
For a prospective Del Taco franchisee, this information provides insight into the company's capital structure and its approach to managing its shares. A significant treasury stock balance can indicate that the company believes its shares are undervalued, or that it has excess cash to return to shareholders. It can also be used for employee stock options or other compensation plans.
It's important to note that the value of treasury stock can fluctuate based on the number of shares repurchased and the price at which they were repurchased. This value is a snapshot in time and can change in subsequent financial periods. Reviewing trends in treasury stock activity over several years can provide a more comprehensive understanding of Del Taco's financial strategy.
While treasury stock doesn't directly impact the day-to-day operations of a Del Taco franchise, it is a component of the overall financial health and stability of the parent company. Franchisees benefit from a financially stable franchisor, as it ensures continued support, investment in the brand, and resources for growth and innovation.