Del Taco Restaurants, Inc. Reports Preliminary Unaudited Fiscal Second Quarter 2020 Sales Results

Total revenue of $104.5 million, representing a 14.0% decline from the fiscal second quarter 2019

Del Taco Restaurants, Inc. (NASDAQ: TACO), the second largest Mexican-American quick service restaurant chain by units in the United States, today reported preliminary unaudited sales results for the 12-week period ending June 16, 2020 and provided a liquidity update.

John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, “We are pleased that our system demonstrated sequential improvement in comparable restaurant sales trends throughout the second fiscal quarter, which we will look to build upon in the weeks and months ahead. This sales momentum helped enhance our liquidity as we recently reduced our outstanding revolving credit facility borrowing to $145 million, consistent with the balance at the end of fiscal year 2019. Notably, our franchised restaurants across a broad 14-state footprint achieved positive comparable restaurant sales growth during the last five weeks of the quarter, representing a more than 30% swing compared to the first three weeks of the fiscal quarter.”

Cappasola concluded, “We have leveraged our QSR+ strengths during the pandemic through our no contact or limited contact channels, lack of reliance upon dining rooms, and of course, Del Taco’s strong heritage of great value and variety. Our team members and franchise partners have done an incredible job rising to unique challenges and, looking ahead, we believe Del Taco is well positioned to accelerate performance.”

Fiscal Second Quarter 2020 Comparable Restaurant Sales

 
   

Twelve weeks

 

 

Four weeks

 

 

Four weeks

 

 

Four weeks

ended

 

 

ended

 

 

ended

 

 

ended

   

June 16, 2020

 

 

April 21, 2020

 

 

May 19, 2020

 

 

June 16, 2020

Company-operated

   

-12.6%

   

-23.9%

   

-10.4%

   

-3.7%

Franchised

   

-7.2%

   

-22.7%

   

-2.9%

   

3.5%

System-wide

   

-10.1%

   

-23.4%

   

-6.9%

   

-0.3%

 

The results in the table above are compared to the comparable prior year period.

Other Fiscal Second Quarter 2020 Sales Highlights

  • Total revenue of $104.5 million, representing a 14.0% decline from the fiscal second quarter 2019;
  • Company-operated restaurant sales of $95.2 million, representing a 15.2% decline from the fiscal second quarter 2019; and
  • At the end of the fiscal second quarter there was one franchise restaurant temporarily closed.

The expected sales results are preliminary and unaudited, have not been reviewed by our independent registered public accountants, and remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change.

Cash and Liquidity

During the fiscal second quarter the Company reduced its outstanding revolving credit facility borrowing down to $145 million, consistent with the balance at the end of fiscal year 2019, and the Company currently has over $6 million in cash on hand. The remaining availability under the revolving credit facility is currently $87.7 million.

Key Financial Definitions

Comparable restaurant sales growth reflects the change in year-over-year sales for the comparable company, franchise and total system restaurant base. Restaurants are included in the comparable store base in the accounting period following its 18th full month of operations and excludes restaurant closures.

About Del Taco Restaurants, Inc.

Del Taco (NASDAQ: TACO) offers a unique variety of both Mexican and American favorites such as burritos and fries, prepared fresh in every restaurant’s working kitchen with the value and convenience of a drive-thru. Del Taco’s menu items taste better because they are made with quality ingredients like fresh grilled chicken and carne asada steak, hand-sliced avocado, hand-grated cheddar cheese, slow-cooked beans made from scratch, and creamy Queso Blanco. The brand’s campaign further communicates Del Taco’s commitment to providing guests with the best quality and value for their money through cooking, chopping, shredding and grilling menu items from scratch. Founded in 1964, today Del Taco serves more than three million guests each week at its approximately 600 restaurants across 15 states.