Jack In The Box Now Owns This Fan-Favorite Taco Restaurant

A few years ago, fast food chain Jack in the Box looked like it had hit serious financial trouble. According to Nation's Restaurant News, the company took itself off the market back in 2019 and had to restructure in order to stay profitable. The brand's strength comes from its diversified menu, which boasts egg rolls, burritos, burgers, bacon cheddar potato wedges, and mozzarella sticks, as well as its eclecticism (via Mental Itch). Thanks to a recent business acquisition, Jack in the Box has not only proven they have pulled themself out of their 2019 financial woes, but that they have taken one step towards consolidating their brand identity.

CNBC reports that this fast food chain is purchasing Del Taco for about $575 million. The buyout will amount to an approximate $12 cash payout per share to Del Taco stockholders. This comes as a significant financial gain to the current Del Taco owners, as each share of the taco chain previously amounted to about $7.50. While this move provides fortuitous to anyone associated with Del Taco, Jack in the Box appears to have positioned themself to possibly take on the giants of fast food with this buyout.

Reuters reports that in addition to the multi-million payout, Jack in the Box plans to use part of the $575 million to clear the debt Del Taco has accumulated. According to CNBC, Jack in the Box is expected to take over Del Taco's 600 locations. Del Taco operates as the second biggest Tex-Mex fast food chain, surpassed only by Taco Bell. Jack in the Box plans to strengthen both brands through this business deal and seems poised to make an even greater impact on the fast food market in the coming years. The expansion should save about $15 million by the end of 2023 thanks to resolving supply chain and digital issues.

If you count yourself as a fan of either of these fast food chains, good times might just be heading your way soon. With the buyout, you can expect to see some positive changes for the brands and you may even see some exciting deals or promotions through the buyout. Only time can tell what happens next, but with any luck, look for big moves from these two brands in the near future.