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TACO: Del Taco Restaurants, Inc. (NASDAQ:TACO)

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Del Taco Restaurants, Inc. (“Del Taco” or the “Company”), (NASDAQ: TACO), the 2nd-leading Mexican-American quick-service restaurant chain by units in the United States, newly declared fiscal 3rd-quarter 2k19 financial results for the 12-week duration ending September 10, 2k19.

Financial 3rd-Quarter 2k19 Highlights

  • System-wide comparable restaurant sales raised 1.00 percent;
    • Company-operated comparable restaurant sales raised 0.40 percent. Company-operated comparable restaurant sales were comprised of average check growth of 4.10 percent, counting modest menu mix growth, mostly offset by a transaction decline of 3.70 percent;
    • Franchised comparable restaurant sales raised 1.80 percent;
  • Total revenue of $120.20M representing 2.00 percent growth from the financial 3rd-quarter 2k18;
  • Company-operated restaurant sales of $111.10M representing 1.40 percent growth from the financial 3rd-quarter 2k18;
  • Net loss of $7.70M, or $0.210 for each diluted share, contrast to net income of $5.90M, or $0.150 for each diluted share, in the fiscal 3rd-quarter 2k18;
  • Adjusted net income* of $3.70M, or $0.100 for each diluted share, a contrast to $6.00M, or $0.150 for each diluted share, in the financial 3rd-quarter 2k18;
  • Restaurant contribution* margin of 16.80 percent, which includes an approximate 70.0 basis points unfavorable impact from the adoption of the new lease accounting standard, a contrast to 19.90 percent in the financial 3rd-quarter 2k18;
  • Adjusted EBITDA* of $14.50M, which includes about $0.70M of unfavorable impact from the adoption of the new lease accounting standard, a contrast to $17.70M in the financial 3rd-quarter 2k18;

Review of Fiscal 3rd-Quarter 2k19 Financial Results

Total revenue raised 2.00 percent to $120.20M in contrast to $117.80M in the financial 3rd-quarter 2k18. Comparable restaurant sales raised 1.00 percent system-wide, resulting in a 2.40 percent incline on a two-year basis. Company-operated comparable restaurant sales raised 0.40 percent while franchise comparable restaurant sales raised 1.80 percent.

Net loss was $7.70M, representing a loss of $0.210 for each diluted share, contrast to net income of $5.90M in the financial 3rd-quarter 2k18, representing $0.150 for each diluted share. During the financial 3rd-quarter 2k19 the net loss contrast to net income in the prior-year duration was mainly because of a $7.90M loss on disposal of assets and adjustments to assets held for sale, and the resulting income tax provision that was influenced by the reclassification of $14.80M of non-tax deductible goodwill to assets held for sale, in addition to impairment of long-lived assets of $1.40M.

Adjusted net income* was $3.70M, or $0.100 for each diluted share, a contrast to $6.00M in the financial 3rd-quarter 2k18, or $0.150 for each diluted share.

Restaurant contribution* was $18.60M in contrast to $21.80M in the financial 3rd-quarter 2k18. As a percentage of Company-operated restaurant sales, restaurant contribution margin reduced 310 basis points year-over-year to 16.80 percent. The decline was the result of about 70.0 basis point incline in food and paper costs, and about 50.0 basis point incline in labor and related costs, and an about 200.0 basis point incline in occupancy and other operating costs. Restaurant contribution margin included a negative impact of about 70.0 basis points because of the adoption of the new lease accounting standard and a negative impact of about 40.0 basis points from the timing of advertising cost.

Adjusted EBITDA* was $14.50M contrast to $17.70M in the financial 3rd-quarter 2k19, counting an about $0.70M of unfavorable impact from the adoption of the new lease accounting standard.

 

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