v3.26.1
DISCONTINUED OPERATIONS (Tables)
 6 Months Ended
Apr. 12, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
The following table summarizes the Del Taco results for each period prior to the sale (in thousands, except per share data):
Quarter
Year-to-date(1)
April 12,
2026		April 13,
2025		April 12,
2026		April 13,
2025
Company restaurant sales$— $47,398 $48,713 $115,048 
Franchise revenues— 23,567 21,509 54,291 
Company restaurant costs— (41,332)(43,199)(99,641)
Franchise costs— (17,834)(12,944)(40,647)
Selling, general, and administrative expenses (2)
— (7,264)(7,018)(16,787)
Depreciation and amortization (3)
— (4,149)(882)(9,961)
Pre-opening costs— (33)(50)(52)
Impairment of goodwill and intangible assets— (203,230)— (203,230)
Other operating expense, net— (2,456)(570)(3,428)
Transaction-related costs (4)
(1,776)— (9,593)— 
Gains on the sale of company-operated restaurants— (30)— 2,776 
Interest expense, net— (15)1 (61)
Operating loss from discontinued operations before income taxes(1,776)(205,378)(4,033)(201,692)
Loss on Del Taco sale— — (47,428)— 
Losses from discontinued operations and before income taxes(1,776)(205,378)(51,461)(201,692)
Income tax expense (benefit) (5)
520 (42,451)(32,318)(41,455)
Losses from discontinued operations, net of income taxes(2,296)(162,927)(19,143)(160,237)
Net loss per share from discontinued operations
Basic$(0.12)$(8.56)$(1.00)$(8.41)
Diluted$(0.12)$(8.56)$(0.99)$(8.41)
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(1)Del Taco operating results include only twelve weeks of activity through the sale date on December 22, 2025.
(2)Selling, general and administrative expenses presented in the table above include corporate costs directly in support of Del Taco operations. All other corporate costs were classified in results of continuing operations.
(3)Depreciation and amortization ceased upon classification of the Del Taco assets as held for sale during the quarter.
(4)Transaction-related costs are comprised primarily of professional fees for accounting and legal, which were not contingent fees included in loss on sale calculation.
(5)Income tax benefit in 2026 is primarily due to utilization of capital loss from the Del Taco sale, net of valuation allowance against excess capital loss carryforward to expire in fiscal year 2031.
The following is a reconciliation of the loss recorded for the Del Taco sale (in thousands):
Net proceeds received from the Del Taco Sale (1)
$119,086 
Del Taco assets:
Cash$421 
Accounts and other receivables, net14,048 
Inventories1,688 
Prepaid expenses848 
Other current assets1,508 
Property and equipment, net99,790 
Operating lease right-of-use assets369,349 
Intangible assets, net9,803 
Trademarks105,600 
Other assets, net14,014 
Total Del Taco assets$617,069 
Del Taco liabilities:
Current maturities of long-term debt$31 
Current operating lease liabilities21,551 
Accounts payable12,986 
Accrued liabilities21,281 
Long-term debt, net of current maturities245 
Long-term operating lease liabilities, net of current portion349,616 
Deferred tax liabilities23,405 
Other long-term liabilities, including note payable26,390 
Total Del Taco liabilities $455,505 
Other transaction costs incurred as part of the Del Taco sale (2)
$4,950 
Loss on sale of Del Taco before income taxes$(47,428)
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(1)The proceeds received from the Del Taco Sale include working capital adjustments outlined in the Purchase Agreement.
(2)Costs directly incurred as a result of the Del Taco Sale, including investment bank fees and employee transaction awards.
The assets being sold and liabilities being assumed by the Buyer were classified as held-for-sale during the first quarter of 2026. As such, prior year balances have been recast to conform with this presentation. Upon classification of the Del Taco assets as held for sale, the assets were no longer depreciated. Proceeds from the Del Taco Sale have been presented in the condensed consolidated statement of cash flows within cash provided by discontinued operations in investing activities.
The following table summarizes the major categories of assets and liabilities classified as held for sale in our condensed consolidated balance sheet as of September 28, 2025 and acquired in the Del Taco Sale (in thousands):
September 28,
2025
Assets:
Cash$5,765 
Accounts and other receivables, net16,567 
Inventories1,612 
Prepaid and other current assets3,769 
Property and equipment, net99,991 
Operating lease right-of-use assets366,430 
Intangible assets, net9,884 
Trademarks105,600 
Deferred tax assets (1)
(20,233)
Other assets13,295 
Total assets classified as held for sale (2)
$602,680 
Liabilities:
Current operating lease liabilities$21,068 
Accounts payable14,752 
Accrued liabilities, including current note payable28,319 
Long-term operating lease liabilities, net of current portion351,667 
Other long-term liabilities, including note payable25,778 
Total liabilities classified as held for sale$441,584 
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(1)Reflects deferred income tax liabilities for Del Taco, which were netted against the Jack in the Box deferred income tax assets in other assets, net, on our condensed consolidated balance sheets.
(2)The current assets held for sale on the condensed consolidated balance sheet as of September 28, 2025 includes Jack in the Box assets held for sale of $18.3 million.