Del Taco Restaurants (TACO) Tops Q3 EPS by 6c, Comps Rise 4.1%

Del Taco Restaurants (NASDAQ: TACO) reported Q3 EPS of $0.16, $0.06 better than the analyst estimate of $0.10. Revenue for the quarter came in at $120.8 million versus the consensus estimate of $117.62 million. System-wide comparable restaurant sales increased 4.1%.

John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “As we continue to navigate the challenges and opportunities related to COVID-19, I am proud of our actions to stabilize our business as demonstrated by our strong third quarter performance. Positive third quarter comparable restaurant sales for company-operated and franchised restaurants reflects our value-oriented QSR+ positioning, expanding off-premise convenience and use of innovation with the very successful launch of new fresh Guacamole and our Crispy Chicken menu. We also drove operational efficiencies and maintained our cost discipline to help slightly expand our restaurant contribution margin after adjusting for the timing of advertising expense which will normalize during our fourth quarter.”

Cappasola concluded, “We are delivering great experiences and driving high overall guest satisfaction scores due to the exceptional work and dedication of our restaurant teams, franchisees and support center employees. Their efforts have established a solid foundation that we plan to leverage with continued innovation including the recent introduction of a new flavor to our Crispy Chicken menu through our partnership with Cholula. Looking ahead to 2021, we plan to elevate our brand engagement and transform our digital capability through a holistic CRM platform to incentivize and reward our fans, and launch our ‘Ultimate Convenience’ initiative to expand our access and convenience through new technology.”

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

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