News

Del Taco closes books on 18th quarter of sales growth

May 4, 2018

Del Taco said its 2018 Q1 results show it has now reached 18 straight quarters of system-wide comparable sales growth, including a 3.7 percent boost this past three-month period, according to a news release. In fact, Del Taco President and CEO John D. Cappasola Jr. said the results are particularly heartening for a period that saw year's lowest expected menu prices and highest expected level of food inflation.

Other key results for Q1 2018 include:

• 2.6 percent boost in company-operated comparable restaurant sales.
• 5.2 percent boost in franchised comparable restaurant sales growth.
• 6.8 percent increase in total revenue to $112.6 million, compared to 2017 Q1 total of $105.3 million.
• 3.8 percent company restaurant sales increase to $105.1 million compared to $101.2 million last year quarter. 
• Decreased net income year over year to $3.2 million, representing diluted earnings per share of $0.08. 
• Adjusted EBITDA of $13.9 million compared to $14.6 million in the fiscal first quarter 2017. 
• One franchise location closed, while three company-operated restaurants opened.

"System-wide comparable restaurant sales growth of 3.7 percent, or 7.9 percent on a two-year basis, was a strong outcome," Cappasola said in the release. "We view the franchise restaurants 5.2 percent comparable restaurant sales increase as a reflection of Del Taco's strength in varied geographies. We are very pleased with the continued AUV growth within our franchise base which is driving increased traction on franchise development across the country.

"As the year progresses we expect to increase our menu pricing while food inflation trends moderate and various supply chain and labor optimization strategies generate additional savings."

The 54-year-old chain said it now serves more than 3 million guests each week at its more than 560 restaurants across 14 states.