Shares in Del Taco Restaurants Inc. (Nasdaq: TACO) in Lake Forest fell about 11% in Thursday trading following yesterday's release of its fourth quarter and full-year results.
Shares are below the fast food chain's year-ago level of $11.75 to about $11.25 and a $444 million market cap, after a fall 2017 spike to $16.
Several metrics were higher including revenue and same-store sales but net income for the quarter declined and for the year was flat, excluding a $29 million benefit from U.S. tax reform.
The chain opened 10 restaurants and close four locations in the quarter; for the year it opened 20 sites and closed seven. Most of the new sites were company-owned.
Del Taco has said it wants to increase its franchised locations. As of January 2 the chain had 564 locations, of which 55% were company-owned.
It plans to open 25 to 28 new locations this year.
It guided 2018 company-run restaurant sales to between $473 million and $483 million, an increase of about 4% over 2017 and adjusted earnings before interest, taxes, depreciation and amortization of $71.5 million to $74 million; 2017 EBITDA was $71.5 million.
Del Taco is the 5th largest OC-based restaurant chain, according to Business Journal research.