Four years after acquiring Del Taco for $575 million, Jack in the Box inked a deal to sell its subsidiary to Yadav Enterprises for $115 million in cash. Del Taco has more than 550 restaurants across 18 states, per a release announcing the deal which is expected to close by January 2026.

Yadav is a Jack in the Box franchisee but operates a variety of other concepts, too, including Denny’s and TGI Friday’s. The company also owns Taco Cabana, a 150-unit fast-casual chain, and Nick the Greek, a 90-unit fast-casual chain. Overall, Yadav operates more than 310 restaurants.

The deal appears to be part of the company’s “Jack on Track” plan announced in April in that the divestiture of Del Taco begins returning “Jack in the Box to a simpler, asset-light business model,” the release added,

Jack in the Box announced its plan to acquire Del Taco back in December of 2021. In acquiring Del Taco, Jack in the Box sought to leverage a “shared approach to building out markets, allowing Jack in the Box to support growth plans for both brands.”

Jack in the Box Inc. has approximately 2,160 restaurants across 22 states.