Del Taco hits 19 straight quarters of sales growth
Del Taco's Q2 results show the chain has attained 19 straight quarters of sales growth, including the most recent quarter when system-wide comp sales jumped 3.3 percent, a news release said. With that, the company reaffirmed its FY 18 guidance on an adjusted basis and said it's increasing its common stock and warrants repurchase program from $25 million to $75 million.
Total revenue for the quarter grew 8.5 percent to $117.8 million over the same period last year. That number includes $3.1 million of franchise advertising contributions and $0.2 million of other franchise revenue.
Other Q2 financial results include:
- 4.2 percent growth in franchised comparable sales.
- 2.5 percent increase in company-operated comparable restaurant sales growth.
- 3.7 percent average check growth with more than a fourth of that coming from menu mix growth, offset by a 1.2 percent transaction decrease.
- 5.6 percent growth in company restaurant sales.
- Net income was $4.2 million and 11 cents per diluted share, compared to $5.3 million in Q2 17 and 13 cents per diluted share.
- Adjusted net income was $5.4 million, or 14 cents per diluted share, compared to $5.3 million and 13 cents in Q2 17.
- Adjusted EBITDA was $16.8 million compared to $17.0 million in Q2 17.
"Since fiscal 2013 our company and franchise AUV's have each grown by more than 25 percent, helping us achieve enhanced unit economics that are driving company and franchise growth opportunities," President and CEO John D. Cappasola, Jr. said in the release. "Our second quarter was in line with our expectations and we remain on track to achieve our annual guidance on an adjusted basis. We are particularly pleased with our system-wide comparable restaurant sales growth of 3.3 percent, or 10.4 percent on a two-year basis."
Cappasola said the company started Q3 by launching an initiative that included a number of brand catalysts and operational improvements designed to further the company's status in the QSR-plus segment. This initiative, he said, includes a new concept tagline — "Fresh Mexican Grill" — as well as a new ad campaign centered around the so-called "hardest working hands in fast food," new packaging, menu boards kitchen equipment, uniforms and other initiatives.