News
Del Taco delivers lackluster Q4, FY 2019 results
March 12, 2020
California-based Del Taco Restaurants Inc. turned in a disappointing Q4 financial performance as well as lackluster fiscal year 2019 results this week for the two periods, both ending on Dec. 31. In fact, total revenue in Q4 fell 0.1% from the previous year's quarter to $157.1 million while the company recorded a $114.1 million net loss, or $3.08 per diluted share, which compared to net income of $5.6 million or 15 cents a diluted in the previous year's fourth quarter, according to the financial report.
Other Q4 highlights include:
- 0.4% growth in system-wide comparable restaurant sales.
- $6.7 million adjusted net income or 18 cents per diluted share, compared to $7.2 million, or 19 cents per diluted share.
- 17.4% restaurant contribution margin, compared to 20.3% in Q4 2018.
- $20.5 million adjusted EBITDA, compared to $23.6 million for the last year's quarter.
- 13 system-wide openings, two franchise closures and 18 refranchises.
Fiscal year 2019 highlights include:
- 0.9% growth in system-wide comparable restaurant sales.
- 1.5% growth in total revenue year over year, to $513 million.
- $118.3 million net loss or $3.20 per diluted share, compared to net income of $19 million, or 49 cents per diluted share in FY2018.
- $17.7 million in adjusted net income or 47 cents per diluted share, compared to $22.6 million, or 58 cents per diluted share, in FY2018.
- $63.8 million adjusted EBITDA compared to $72 million in FY2018.
- 24 system-wide openings, with 31 restaurants refranchised.
"2019 was a challenging year in which we delivered on our revised financial expectations across key metrics while making solid progress on several strategic fronts that position us well for the future," Del Taco President and CEO John D. Cappasola, Jr. said in the report. "We successfully entered into the digital landscape, transforming our marketing model and creating future sales opportunities by achieving our goal of making our food available through three integrated delivery service providers and growing the new Del app to over 950,000 registered users currently.
"This year, the combination of reinvigorating our category leading value position and compelling new product innovation are expected to serve as transaction catalysts, while our strategic progress during 2019 on digital initiatives and daypart utilization strategies are expected to improve heavy user frequency."
In 2020, the company expects system-wide comparable restaurant sales growth in the low single digits, with total revenue between $503 million and $513 million. Adjusted EBITDA is expected between $57 million and $60 million, with 15-20 gross system-wide new unit openings.
