Del Taco: Placentia location sporting new restaurant design

Del Taco: Placentia location sporting new restaurant design

Del Taco Restaurants Inc. (Nasdaq: TACO) faced what President and CEO John Cappasola called “a challenging year” in 2019 as the company sought to make improvements on the menu, digital and refranchising fronts.

The Lake Forest-based company said it’s now positioned to bolster transactions, restaurant visits and franchised growth this year. Its guidance for full-year fiscal 2020 projects comparable sales across all restaurants to grow in the low single digits and revenue between $503 million to $513 million. It expects 15 to 20 gross restaurant openings in 2020.

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The forecast also came with the company’s results for its fourth quarter ended Dec. 31. Revenue was essentially flat at $157.1 million in the fourth quarter. Analysts on average expected revenue of $157.3 million.

The company reported adjusted net income of $6.7 million, compared with $7.2 million a year ago. Analysts were targeting income of $6.3 million.

Del Taco’s stock rose 3.4% in after-hours trading with a market cap of $176 million. Shares have fallen about 40% in the last three weeks as part of the general market downturn.

It’s the 6th-largest restaurant chain based in Orange County.