What are the two reportable operating segments that include Del Taco?
Del_Taco Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's principal business consists of developing, operating and franchising our Jack in the Box and Del Taco restaurant brands, each of which is considered a reportable operating segment. The company also utilizes a shared-services model whereby each brand's results of operations are assessed separately and do not include costs related to certain corporate functions which support both brands. The segment reporting structure reflects the Company's current management structure, internal reporting method and financial information used in deciding how to allocate Company resources. Based upon certain quantitative thresholds, each operating segment is considered a reportable segment. This segment reporting is in line with our reporting units for goodwill.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 58)
What This Means (2025 FDD)
According to the 2025 Del Taco Franchise Disclosure Document, the company has two reportable operating segments. These segments are the Jack in the Box restaurant brand and the Del Taco restaurant brand. Each brand's financial performance is assessed separately. Certain corporate functions support both brands, but the costs related to these shared services are not included in the individual brand's operating results.
This segmentation reflects how Del Taco's management is structured and how internal reporting is conducted. It also dictates how the company allocates resources between the two brands. The company determines which operating segments are reportable based on quantitative thresholds. This segment reporting aligns with the company's reporting units for goodwill, which is an intangible asset representing the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination.
For a prospective Del Taco franchisee, this means that the financial performance of Del Taco restaurants is evaluated independently from Jack in the Box. This allows for a clearer understanding of the Del Taco brand's contribution to the overall company. However, it's important to note that certain shared costs, such as those related to corporate functions, are not allocated to either segment, which could impact the overall profitability picture for each brand.