Lake Forest fast food chain Del Taco Restaurants Inc. (Nasdaq: TACO) shed some light Thursday on the status of its business since the coronavirus pandemic took hold.
The company said it tapped $50 million from a credit line, bringing its total cash on hand to over $56 million in a move “taken as a precautionary measure.” The company also said it pushed back some expenses and rejiggered operating costs.
“We believe that our actions have us well positioned for both the near term and when the crisis is firmly behind us,” said President and CEO John Cappasola.
Revised guidance for the current year will be provided during the company’s first-quarter update, which isn’t scheduled yet.
Del Taco corporate staff began working virtually March 16 in a transition that has so far gone smoothly, the company said.
The chain, with 597 franchised and company-owned restaurants, has so far seen four of those locations closed temporarily as a result of the pandemic.
Meanwhile, Del Taco’s delivery channel should see a boost in its fiscal second quarter, when a new deal with Uber Eats goes into effect. The delivery channel, pre-coronavirus, represented 3% of overall company-owned restaurant sales. Drive thru and takeout have typically accounted for the lion’s share of company-owned restaurant sales, comprising more than 85% of revenue.
Del Taco had $513 million in revenue last year. Shares were trading roughly flat Thursday afternoon to a recent $119 million market cap.
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