Del Taco reports 1.5% growth in Q1 2019 total revenue to $114.2m

7th May 2019 (Last Updated May 7th, 2019 17:07)

Mexican-American chain Del Taco has reported a 1.5% increase in total revenue to $114.2m for the first quarter (Q1 2019) ending 26 March 2019, compared to $112.55m last year. 

Del Taco reports 1.5% growth in Q1 2019 total revenue to $114.2m
Del Taco opened four restaurants and closed one location during the quarter. Credit: Del Taco Restaurants.

Mexican-American chain Del Taco has reported a 1.5% increase in total revenue to $114.2m for the first quarter (Q1 2019) ending 26 March 2019, compared to $112.55m last year.

The company also reported a net income of $1.4m or $0.04 per diluted share, and adjusted net income of $1.7m.

Del Taco registered an increase of 0.8% in company-operated restaurant sales of approximately $105.9m.

The restaurant chain reported a 0.1% decline in system-wide comparable restaurant sales, a 0.6% decline in company-operated comparable restaurant sales, and 0.4% increase in franchised comparable restaurant sales.

“We are encouraged by this sequential improvement and are pleased to reaffirm our guidance for the full year.”

Del Taco president and CEO John D Cappasola Jr said: “While our Mix2 and seasonal seafood promotions performed well in the quarter, driving nearly 1% of menu mix at company-operated restaurants, comparable restaurant sales and transactions were adversely impacted by unfavourable weather in California and throughout the West, as well as a delayed Lenten season.

“However, our second quarter comparable restaurant sales have returned to positive territory as we cycled the Lenten calendar shift and began to benefit from our transaction-driving initiatives including our digital transformation, value evolution, and menu innovation.

“We are encouraged by this sequential improvement and are pleased to reaffirm our guidance for the full year.”

In addition, the restaurant chain reported adjusted EBITDA of $12.1m, compared to $13.9m in the first quarter of 2018.

Under its restaurant portfolio optimisation programme, Del Taco opened four franchised restaurants, closed one franchised restaurant, acquired three franchised restaurants, and refranchised 13 restaurants during the quarter.