Del Taco reports 3.1% growth in total revenue for Q2 2019

31st July 2019 (Last Updated July 31st, 2019 11:26)

US-based Mexican-American quick-service restaurant chain Del Taco has reported a 3.1% increase in total revenues to $121.46m for the second quarter (Q2 2019) ending 18 June 2019.

Del Taco reports 3.1% growth in total revenue for Q2 2019
Del Taco opened two franchised and one company-operated restaurants during the quarter. Credit: Del Taco Restaurants.

US-based Mexican-American quick-service restaurant chain Del Taco has reported a 3.1% increase in total revenues to $121.46m for the second quarter (Q2 2019) ending 18 June 2019.

The company also reported a net income of $2.09m or $0.06 per diluted share, compared with $4.2m, or $0.11 per diluted share, during Q2 2018.

Adjusted net income of the restaurant chain was $4.9m, or $0.13 per diluted share, compared to $5.4m, or $0.14 per diluted share for the same period the previous year.

Del Taco reported a 2.2% increase in system-wide comparable restaurant sales. The company-operated and franchised comparable restaurant sales increased by 1.7% and 2.8% respectively.

Del Taco president and CEO John D Cappasola Jr said: “Del Taco’s digital transformation, value evolution, and menu innovation strategies drove sequential system-wide comparable restaurant sales improvement during the second quarter.

“Company-operated restaurants experienced a 230 basis point and 300 basis point improvement respectively, in comparable restaurant sales and transactions relative to the first quarter while franchised restaurants similarly generated stronger sequential trends.

“We also improved our restaurant contribution margin performance compared to the first quarter due to these stronger top-line results coupled with effective cost management. Based upon our Q2 performance and outlook for the remainder of 2019, we are reaffirming our annual guidance.”

In addition, the restaurant chain reported adjusted EBITDA of $16.7m, compared with $16.8m in Q2 2018.

Del Taco opened two franchised and one company-operated restaurants, as well as closed three company-operated restaurants during the quarter.