Del Taco

Leadership

Del Taco names several new executives under its new owner

Ulyses Camacho was named chief transformation officer of the fast-food Mexican chain as Yadav Enterprises takes over ownership. Noah Chillingworth was named chief marketing officer.

Financing

Fast-food was supposed to dominate the post-pandemic environment. It hasn't

The Bottom Line: The Del Taco sale, four years after it was acquired, revealed just how much industry thinking has changed over that time. Fast-food chains were supposed to win. But these days they are not.

The deal comes just four years after Jack in the Box acquired the Mexican fast-food chain for $575 million. It’s the latest brand acquisition for Yadav, which owns Nick the Greek and previously owned TGI Fridays.

South Carolina-based Matador Restaurant Group, which operates 22 locations of the Mexican fast-food chain, cited unexpectedly weak sales and its own decision to take out merchant cash advances.

The Mexican fast-food chain plans a phased reopening of 17 of 18 restaurants closed earlier this year. The company plans to operate them as corporate stores.

The company said that a sale is the most likely scenario, based on potential interest. Yet it comes despite continued challenges for Del Taco that have hammered profits.

The Bottom Line: Jack in the Box’s planned sale of Del Taco highlights the sector’s complexity. Consumers are eating more Mexican. But they’re avoiding fast-food Mexican restaurants. Unless it’s Taco Bell.

The Bottom Line: Jack in the Box is selling Del Taco just three years after buying the Mexican fast-food chain. But it’s not the first company to quickly decide to shed an acquisition. And it won’t be the last.

The fast-food restaurant company has hired an advisor to explore strategic alternatives with its Mexican brand just three years after buying the chain. It also plans to close 150 to 200 locations.

The Bottom Line: The Mexican fast-food chain moved aggressively to terminate an operator just one year after it gave them the right to operate an entire state. And then the lender pulled the plug.

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