Jack in the Box announced Monday that it will acquire Del Taco in a $575 million deal.
Per Fox News, the acquisition is expected to be finalized in 2022 and will add 2,800 restaurants spanning 25 states to Jack in The Box’s portfolio, according to Fox News.
After the news, Del Taco stock surged 66%, per KTLA.
The Mexican restaurant sells tacos, burritos and nachos as well as regular hamburgers and fries. While Jack in the Box is known for a more eclectic menu that includes hamburgers, tacos, egg rolls and teriyaki bowls.
“Del Taco has a loyal, passionate guest base and a strong operating model, and we believe that we can leverage our infrastructure, experience franchising, and development strategy to support Del Taco’s growth plans and expand Del Taco’s footprint,” said Jack in the Box CEO Darin Harris, per the report.
“This is a natural combination of two like-minded, challenger brands with outstanding growth opportunities. Together, Jack in the Box and Del Taco will benefit from a stronger financial model, gaining greater scale to invest in digital and technology capabilities and unit growth for both brands,” he added.
The company previously bought and sold another Mexican chain, Qdoba, according to Fox News.