Food & Beverage

Del Taco Q4 results perk up a tough year

March 9, 2021

California-based Mexican-American QSR, Del Taco, roughed it out like so many others in 2020, but was seeing hopeful signs of recovery in Q4 that continue on into this year, according to the company's latest Q4 and full-year 020 financials results.

For the year, total revenue fell just over 4% to $491.9 million from FY 2019, as sales fell 0.9% systemwide. However, in the fourth-quarter of 2020 – that ended systemwide, comp sales grew 3.8% and total revenue was down just 0.2% from FY2019 to $156.7 million, the financial report from the company showed.

Other key financial results from the year include:

• Net loss of $89.7 million, or $2.41 per diluted share, compared to net loss of $118.3 million, or $3.20 per diluted share, in fiscal year 2019.
• Adjusted net income of $13.5 million, or 36 cents per diluted share, compared to adjusted net income of $17.7 million, or 47 cents per diluted share, in in FY19.
• Adjusted EBITDA of $54.6 million compared to $63.8 million in FY19.
• 10 stores opened and 10 closed, while six company-operated restaurants were sold to franchisees.

Key fourth-quarter results, include:

• Net income of $7.5 million, or 20 cents per diluted share, compared to net loss of $114.1 million, or $3.08 per diluted share, in Q4 2019.
• Adjusted net income of $7.5 million, or 20 cents per diluted share, compared to adjusted net income of $6.7 million, or 18 cents per diluted share, in the fiscal fourth quarter 2019.
• Adjusted EBITDA of $18.4 million compared to $20.5 million in Q4 2019.
• Two franchise-operated restaurants opened and two franchise-operated restaurants closed.

"We delivered a solid fourth quarter performance in terms of comparable restaurant sales growth, restaurant contribution margin and adjusted EBITDA performance. Our great food, great value, and great experiences drove overall satisfaction scores to record levels, while the success of our Crispy Chicken menu and seasonal Tamale promotion enabled us to grow system-wide comparable restaurant sales while navigating through the clear headwinds affecting our industry. …

"Both company-operated and franchise restaurants continue to generate positive comparable restaurant sales to date in the first quarter and have demonstrated sequential improvement compared to the fourth quarter last year. We further expect accelerated performance for the remainder of the first quarter and through the second quarter as we lap the initial COVID-19 impact. In addition, we believe our five drivers of acceleration, coupled with ongoing margin management strategies, will help drive our results in the second half of the year and facilitate modest restaurant contribution margin expansion on an annual basis," " Del Taco President and CO john D. Cappasola, Jr. said in the release.