Del Taco Restaurants (TACO) Misses Q1 EPS by 1c, Revenues Beat

Del Taco Restaurants (NASDAQ: TACO) reported Q1 EPS of $0.01, $0.01 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $109.8 million versus the consensus estimate of $106.6 million.

Fiscal First Quarter 2020 Highlights

• System-wide comparable restaurant sales decreased 3.1%;
  • Company-operated comparable restaurant sales decreased 2.5%. Company-operated comparable restaurant sales were comprised of average check growth of 3.7% offset by a transaction decline of 6.2%;
  • Franchised comparable restaurant sales decreased 3.7%;
  • For the first 10 weeks of the fiscal first quarter through March 10, 2020, system-wide comparable restaurant sales increased 1.0%, company-operated comparable restaurant sales increased 1.5%, and franchised comparable restaurant sales increased 0.3%;
  • For the final two weeks of the first fiscal quarter ended March 24, 2020, system-wide comparable restaurant sales decreased 21.4%, company-operated comparable restaurant sales decreased 21.1%, and franchised comparable restaurant sales decreased 21.6%;
• Total revenue of $109.8 million, representing a 3.8% decline from the fiscal first quarter 2019;
• Company-operated restaurant sales of $100.3 million, representing a 5.3% decline from the fiscal first quarter 2019;
• Net loss of $102.5 million, or $2.76 per diluted share (inclusive of non-cash pre-tax charges of $87.3 million and $11.9 million for the impairment of goodwill and trademarks, respectively, as well as impairment of long-lived assets of $8.3 million), compared to net income of $1.4 million, or $0.04 per diluted share, in the fiscal first quarter 2019;
• Adjusted net loss* of $0.3 million, or $0.01 per diluted share, compared to adjusted net income* of $1.9 million, or $0.05 per diluted share, in the fiscal first quarter 2019;
• Restaurant contribution* margin of 12.7% compared to 15.8% in the fiscal first quarter 2019;
• Adjusted EBITDA* of $8.7 million compared to $12.1 million in the fiscal first quarter 2019; and
• Three system-wide openings, including two company-operated and one franchised restaurant, as well as one company-operated and two franchise closures. Del Taco also refranchised a total of five restaurants in the Yuma, AZ and El Centro, CA region.

Fiscal Year 2020 Guidance Withdrawn

As a reminder, Del Taco previously withdrew guidance for the 52-week fiscal year 2020 ending December 29, 2020.

For earnings history and earnings-related data on Del Taco Restaurants (TACO) click here.

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