Operations

Del Taco reports 4.1% Q3 sales growth

Photo: File

September 16, 2020

Del Taco Restaurants Inc. reported Wednesday that its preliminary unaudited systemwide comp Q3 sales results, showed a systemwide growth of 4.1% for the period that ended Sept. 8.

In a company press release, Del Taco President and CEO John Cappasola Jr. called out the work of employees and franchisees, as well as the introduction of a crispy chicken menu for helping the brand maintain its footing in a tough year.

"Our unique value-oriented QSR-plus positioning, combined with our expanding off-premise convenience, is proving resilient and resonating with guests through our contactless or limited contact channels," he said. "I am pleased our nimble and focused approach resulted in comparable restaurant sales that sequentially improved from the fiscal second quarter and turned positive at both company-operated and franchised restaurants during the fiscal third quarter. This momentum enabled us to reduce our outstanding revolver balance by $21 million during the fiscal third quarter."

Some of the preliminary Q3 results, include:

• 2% increase in company-operated comparable sales.
• 6.5% increase in franchised comparable sales.
• 0.4% quarter-year over quarter-year growth in total revenue to $120.7 million.

The company said that company-operated restaurant sales fell 1.4% to of $109.5 million, which was attributed to fewer such locations being open this year, compared to those open last year at this time due to refranchising. One company-operated and four franchise restaurants opened and two franchise restaurants closed, the release said.

During the fiscal third quarter, the company reduced its outstanding revolving credit facility borrowing by $21 million to $124 million from $145 million at the end of both the fiscal second quarter and last year's fiscal fourth quarter. The company has $108.7 million available under its revolving credit facility.