Del Taco Restaurants reports total revenue up 2% in third-quarter

22nd October 2019 (Last Updated October 22nd, 2019 11:38)

US-based Mexican-American quick-service restaurant chain Del Taco has reported a 2% increase in total revenues to $120.2m for the third quarter (Q3 2019) ending 10 September 2019.

Del Taco Restaurants reports total revenue up 2% in third-quarter
Del Taco opened four restaurants and closed one location during the quarter. Credit: Del Taco Restaurants.

US-based Mexican-American quick-service restaurant chain Del Taco has reported a 2% rise in total revenues to $120.2m for its third-quarter (Q3) ending 10 September 2019.

The company also reported a net loss of $7.7m, or $0.21 per diluted share, compared to $5.9m, or $0.15 in its third-quarter in 2018.

Adjusted net income of the restaurant chain was $3.7m, or $0.10 per diluted share, compared to $6.0m, or $0.15 per diluted share for the same period the previous year.

Del Taco reported a 1% increase in system-wide comparable restaurant sales. The QSR chain’s company-operated and franchised comparable restaurant sales increased by 0.4% and 1.8% respectively.

In addition, the restaurant chain reported adjusted EBITDA of $14.5m, compared with $17.7m in Q3 for 2018.

Del Taco president and chief executive officer John D. Cappasola Jr said: “Still, flattish comparable restaurant sales at company-operated restaurants coupled with inflationary pressures on food, labour, and operating expenses resulted in lower restaurant contribution and adjusted EBITDA compared to the year-ago period.

“We have since experienced an improvement in company-operated sales and transaction trends during the fourth quarter as we continue to activate and embed our transaction driving initiatives.

“Specifically, we have made great progress against our digital transformation following the late third-quarter launch of Postmates in substantially all company-operated restaurants along with ramping up the Del App to over 800,000 registered users.”

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

The chain also acquired a high-volume franchised restaurant in southern California.

Cappasola added: “Looking ahead, we expect to benefit from further menu innovation, including a new seasonal authentic Pork Tamales LTO and additional delivery traction, including the planned launch of DoorDash as our third delivery service provider late in the fourth quarter.”