Del Taco, the popular Mexican-American fast-food chain, has introduced a fresh brand look and several new menu items. However, this update comes amid speculation that its parent company, Jack in the Box, might sell the brand.
A Bold New Look for Del Taco
Del Taco recently launched three new “El Big Boxes” designed to offer customers great value. The chain also rolled out a bold marketing campaign celebrating its California roots and unique identity.
Sarah McAloon, Del Taco’s Senior Vice President and Chief Administration Officer, said, “Our refreshed look and voice reflect who we are at our core — innovative, authentic and unapologetically different. This rebrand lets us embrace the spirit that makes Del Taco stand out, while delivering fresh Ameri-Mex flavors and more value to our guests.”
The new El Big Boxes include:
$5 Clásico El Big Box: Del Combo Beef and Bean Burrito, Mini Quesadilla, Value Crinkle-Cut Fries, and a 16-ounce drink.
$7 Mex Faves El Big Box: Del Combo Beef and Bean Burrito, Grilled Chicken Taco, Soft Snack Taco, Mini Quesadilla, and a 16-ounce drink.
$9 Ameri-Mex El Big Box: Double Del Cheeseburger, Bean and Cheese Burrito (with choice of red or green sauce), Soft Snack Taco, Value Crinkle-Cut Fries, and a 16-ounce drink.
To highlight the new brand energy, Del Taco launched a commercial series featuring a fictional rock band called the Del Yeah’s. The campaign uses humor, music, and the brand’s bold flavors to capture the lively “Del Yeah!” attitude.
Is a Sale by Jack in the Box Imminent?
Despite the new brand push, Del Taco faces an uncertain future under Jack in the Box. The parent company acquired Del Taco in 2022 for about $585 million. At the time, the deal was positioned as a way to boost market share and improve efficiency. However, Del Taco’s performance has not met expectations.
Recent reports show that same-store sales fell by 3.6% at Del Taco locations and 4.4% at Jack in the Box outlets in the latest quarter. This suggests the acquisition failed to deliver the planned benefits like better scale or stronger brand presence.
Jack in the Box has acknowledged the challenges by exploring “strategic alternatives” for Del Taco, including a possible sale.
The company has paused any financial guidance for the brand, underscoring its uncertain outlook.
Brand Misalignment and Fierce Competition
Del Taco’s style and target market differ from Jack in the Box’s traditional focus. Del Taco competes mainly with Mexican fast-food chains like Taco Bell and fast-casual brands such as Chipotle and Torchy’s Tacos. Jack in the Box has typically targeted late-night customers with quirky burger and taco offerings.
This difference has made it hard for Del Taco to grow significantly under Jack in the Box’s management amid intense competition.
Investor confidence is also wavering. Jack in the Box’s stock price has dropped over 50% in the past year, signaling doubts about the company’s growth strategy and investment returns.
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