Signs Seven Franchise Development Agreements
Year to Date for 53 New Del Taco Restaurants from Coast to
Coast
Launches New Multi-Experience and Multi-Tiered
Del Yeah!™ Rewards App
Del Taco Restaurants, Inc. (“Del Taco” or the “Company”),
(NASDAQ: TACO), the second largest Mexican-American quick service
restaurant chain by units in the United States, today reported
fiscal third quarter 2021 financial results for the 12-week period
ended September 7, 2021.
Management Commentary
John D. Cappasola, Jr., President and Chief Executive Officer of
Del Taco, commented, “We have made significant progress in signing
new franchise development agreements, having signed a total of
seven so far this year, including four since July, for a total of
53 new future Del Taco restaurant commitments across six states
from coast to coast. Accelerating franchise development with
experienced operators looking to diversify their portfolios through
our unique QSR+ positioning is a critical part of our growth and
these new agreements further support our stated goal of 5%
system-wide new unit growth led by franchising beginning in
2023.”
Cappasola continued, “We are pleased with our positive third
quarter comparable restaurant sales as we lapped strong performance
driven by our very successful launch of Crispy Chicken, as well as
our momentum thus far in the fourth quarter. Notable product
innovation during the third quarter included new Double Cheese
Breakfast Tacos and new Stuffed Quesadilla Tacos, and we plan to
follow these introductions with the return of our seasonal,
limited-time Tamales menu beginning in November.”
Cappasola concluded, “We recently launched our new holistic CRM
platform and introduced our new loyalty App called Del Yeah!
Rewards, a points-based loyalty program with four tiers that unlock
exciting offers, rewards and experiences which increase along with
usage of the app. We are confident that the App will enable us to
not only strengthen our guest engagement but also increase sales
and frequency over time.”
Fiscal Third Quarter 2021 Highlights
- Comparable restaurant sales results compared to the fiscal
third quarter 2020:
- System-wide comparable restaurant sales increased 1.8%;
- Company-operated comparable restaurant sales increased
1.6%;
- Franchise comparable restaurant sales increased 2.0%;
- Total revenue of $124.3 million, representing 2.9% growth from
the fiscal third quarter 2020;
- Company-operated restaurant sales of $112.0 million,
representing 2.2% growth from the fiscal third quarter 2020;
- Net income of $3.8 million, or $0.10 per diluted share,
compared to $5.8 million, or $0.15 per diluted share, in the fiscal
third quarter 2020;
- Adjusted net income* of $4.2 million, or $0.11 per diluted
share, compared to $6.0 million, or $0.16 per diluted share, in the
fiscal third quarter 2020;
- Restaurant contribution* margin of 16.5% compared to 18.0% in
the fiscal third quarter 2020;
- Adjusted EBITDA* of $14.1 million compared to $15.3 million in
the fiscal third quarter 2020; and
- One company-operated and three franchised-operated restaurants
opened; one company-operated and one franchise-operated restaurant
closed.
* Adjusted net income, restaurant contribution, and adjusted
EBITDA are non-GAAP measures and defined below under “Key Financial
Definitions”. Please see the reconciliation of non-GAAP measures
accompanying this release.
Review of Fiscal Third Quarter 2021 Financial Results
Total revenue increased 2.9% to $124.3 million compared to
$120.8 million in the fiscal third quarter 2020. Comparable
restaurant sales increased 1.8% system-wide, increased 1.6% at
company-operated restaurants, and increased 2.0% at franchised
restaurants.
Net income was $3.8 million, or $0.10 per diluted share,
compared to $5.8 million, or $0.15 per diluted share, last
year.
Adjusted net income*, which excludes various items, was $4.2
million, or $0.11 per diluted share, compared to $6.0 million, or
$0.16 per diluted share, last year.
Restaurant contribution* was $18.5 million compared to $19.7
million in the fiscal third quarter 2020. As a percentage of
company-operated restaurant sales, restaurant contribution margin
decreased 150 basis points year-over-year to 16.5%. The decrease
from the year-ago period was the result of an approximate 80 basis
points increase in labor and related expense and an approximate 100
basis points increase in other operating expense, due to higher
advertising expense and utilities expense, partially offset by an
approximate 30 basis points decrease in food and paper costs.
Adjusted EBITDA* was $14.1 million compared to $15.3 million in
the fiscal third quarter 2020.
Liquidity
As of September 7, 2021, Del Taco’s debt, net of cash, totaled
$102.3 million compared to $106.7 million at the end of fiscal year
2020. At the end of the fiscal third quarter 2021 the Company had
$130.6 million of remaining availability under its revolving credit
facility.
Common Stock Repurchase Program
Del Taco repurchased 449,324 shares of common stock at an
average price of $9.87 per share for a total of $4.4 million during
the fiscal third quarter 2021. At the end of the fiscal third
quarter approximately $10.6 million remained under the $75 million
repurchase authorization.
Dividend Announcement
The Board of Directors has authorized a quarterly cash dividend
of $0.04 per share of common stock payable on November 24, 2021 to
shareholders of record at the close of business on November 3,
2021.
Del Taco intends to pay quarterly cash dividends for the
foreseeable future, however, all subsequent dividend payments will
be reviewed quarterly and declared by the Board of Directors at its
discretion.
Restaurant Portfolio and New Development Agreements
During the fiscal third quarter 2021, one company-operated and
three franchised-operated restaurants opened, and one
company-operated and one franchise-operated restaurant closed.
Since July, the Company signed four development agreements for a
total of 23 restaurants. These agreements followed three
development agreements announced earlier this year for 30 units. In
total, Del Taco has signed seven development agreements to date in
2021 for 53 restaurants, featuring new franchisees across six
states from coast to coast. The four recent new development
agreements cover future restaurants in four states from coast to
coast, including the east coast of Central Florida and
Raleigh/Durham, North Carolina, as well as Fresno, California and
non-traditional casino locations in Las Vegas.
Also, the Company recently announced a new delivery-only license
agreement with REEF, who is a leader in the growing ghost kitchen
and delivery restaurant space. The collaboration will initially
kick off later this month with the first location in the dense
urban Mid City area of Los Angeles, the first of several planned
delivery-only locations.
Based on the current development pipeline, including the seven
franchised development agreements signed this year, Del Taco
expects system-wide new unit openings will continue to be led by
franchisees and will increase modestly in 2022 compared to the
thirteen expected system-wide new unit openings in 2021, followed
by system-wide new unit growth of 5% beginning in 2023.
Fiscal Year 2021 Guidelines
- Annual commodity inflation compared to the prior year of 2%,
inclusive of approximately 5% inflation in the fiscal fourth
quarter compared to the prior year;
- Labor and related inflation of approximately 6%;
- Menu price increase of approximately 4.6%;
- Modest restaurant contribution margin* expansion compared to
the 16.1% achieved during fiscal 2020;
- General and administrative expenses, inclusive of stock-based
compensation, at approximately 9.0% of total revenue;
- Effective tax rate of approximately 29%;
- Capital expenditures up to $30 million, including expenditures
to maintain or enhance existing restaurants, company-operated
restaurant openings, the test remodel program, and various
discretionary technology and restaurant level investments;
- Four company-operated restaurant openings, of which three have
already opened; and
- Nine franchised restaurant openings, of which eight have
already opened, for 13 system-wide openings.
Conference Call and Webcast
A conference call and webcast are scheduled for 4:30 p.m. ET
today. Hosting the conference call and webcast will be John D.
Cappasola, Jr., President and Chief Executive Officer; and Steven
L. Brake, Executive Vice President and Chief Financial Officer.
Interested parties may listen to the conference call via
telephone by dialing 201-689-8471. A telephone replay will be
available shortly after the call has concluded and can be accessed
by dialing 412-317-6671; the passcode is 13723212.
The webcast will be available at www.deltaco.com under the
investors section and will be archived on the site shortly after
the call has concluded.
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.
Restaurant contribution* is defined as company restaurant
sales less restaurant operating expenses, which are food and paper
costs, labor and related expenses and occupancy and other operating
expenses. Restaurant contribution margin is defined as
restaurant contribution as a percentage of company restaurant
sales. Restaurant contribution and restaurant contribution margin
are neither required by, nor presented in accordance with, GAAP.
Restaurant contribution and restaurant contribution margin are
supplemental measures of operating performance of restaurants and
the calculations thereof may not be comparable to those reported by
other companies. Restaurant contribution and restaurant
contribution margin have limitations as analytical tools, and you
should not consider them in isolation or as substitutes for
analysis of results as reported under GAAP. Management believes
that restaurant contribution and restaurant contribution margin are
important tools for investors because they are widely-used metrics
within the restaurant industry to evaluate restaurant-level
productivity, efficiency and performance. Management uses
restaurant contribution and restaurant contribution margin as key
performance indicators to evaluate the profitability of incremental
sales at Del Taco restaurants, to evaluate restaurant performance
across periods and to evaluate restaurant financial performance
compared with competitors.
Adjusted EBITDA* is defined as net income prior to
interest expense, income taxes, and depreciation and amortization,
as adjusted to add back certain charges, such as stock-based
compensation expense; (gain) loss on disposal of assets and
adjustments to assets held for sale, net; impairment of goodwill;
impairment of trademarks; impairment of long-lived assets;
restaurant closure charges, net; amortization of favorable and
unfavorable lease assets and liabilities, net; pre-opening costs;
sublease income for closed restaurants; executive transition costs;
and other income; as these expenses are not considered an indicator
of ongoing company performance. Adjusted EBITDA is a non-GAAP
financial measure and should not be considered as an alternative to
operating income or net income as a measure of operating
performance or cash flows or as measures of liquidity. Non-GAAP
financial measures are not necessarily calculated the same way by
different companies and should not be considered a substitute for
or superior to GAAP results. We believe Adjusted EBITDA facilitates
operating performance comparisons from period to period by
isolating the effects of some items that vary from period to period
without any correlation to core operating performance or that vary
widely among similar companies. These potential differences may be
caused by variations in capital structures (affecting interest
expense), tax positions (such as the impact on periods or changes
in effective tax rates or net operating losses) and the age and
book depreciation of facilities and equipment (affecting relative
depreciation expense). We also present Adjusted EBITDA because (i)
we believe this measure is frequently used by securities analysts,
investors and other interested parties to evaluate companies in our
industry and (ii) we use Adjusted EBITDA internally as a benchmark
to compare performance to that of competitors.
Adjusted net income* represents company net income before
sublease income for closed restaurants; impairment of goodwill;
impairment of trademarks; impairment of long-lived assets;
restaurant closure charges, net; (gain) loss on disposal of assets
and adjustments to assets held for sale, net; other income;
executive transition costs; net of tax. Adjusted diluted net
income per share* represents company diluted net income per
share before sublease income for closed restaurants; impairment of
goodwill; impairment of trademarks; impairment of long-lived
assets; restaurant closure charges, net; (gain) loss on disposal of
assets and adjustments to assets held for sale, net; other income;
executive transition costs; and tax impact of adjustments, net of
tax.
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, sliced avocado, freshly grated
cheddar cheese, slow-cooked beans made from scratch, and creamy
Queso Blanco.
Founded in 1964, today Del Taco serves more than three million
guests each week at its approximately 600 restaurants across 16
states. Del Taco’s commitment to providing guests with the best
quality and value for their money originates from cooking,
chopping, shredding and grilling menu items from scratch. For more
information, visit www.deltaco.com.
Forward-Looking Statements
In addition to historical information, this release may contain
a number of “forward-looking statements” as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include, without limitation, information concerning Del
Taco’s possible or assumed future results of operations, restaurant
openings, business strategies, competitive position, industry
environment, potential growth opportunities and the effects of
regulation. These statements are based on Del Taco’s management’s
current expectations and beliefs, as well as a number of
assumptions concerning future events. When used in this press
release, the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “target,” “may,” “will,” “should,” “future,” “propose,”
“preliminary,” “guidance,” “on track” and variations of these words
or similar expressions (or the negative versions of such words or
expressions) are intended to identify forward-looking statements.
Such forward-looking statements are subject to known and unknown
risks, uncertainties, assumptions and other important factors, many
of which are outside Del Taco’s management’s control that could
cause actual results to differ materially from the results
discussed in the forward-looking statements. These risks include,
without limitation, the impact of the COVID-19 pandemic, consumer
demand, our inability to successfully open company-operated or
franchised restaurants or establish new markets, competition in our
markets, our inability to grow and manage growth profitably,
adverse changes in food and supply costs, our inability to access
additional capital, changes in applicable laws or regulations
(including minimum wage regulations), food safety and foodborne
illness concerns, our inability to manage existing and to obtain
additional franchisees, our inability to successfully execute our
portfolio optimization strategy, our inability to attract and
retain qualified personnel, our inability to profitably expand into
new markets, changes in, or the discontinuation of, the Company’s
repurchase program or dividend policy, and the possibility that we
may be adversely affected by other economic, business, and/or
competitive factors. Additional risks and uncertainties are
identified and discussed in Del Taco’s reports filed with the SEC,
including under Part I. Item 1A. Risk Factors in our Annual Report
on Form 10-K for the year ended December 29, 2020 available at the
SEC’s website at www.sec.gov and the Company’s website at
www.deltaco.com.
Forward-looking statements included in this release speak only
as of the date of this release. Del Taco undertakes no obligation
to update its forward-looking statements to reflect events or
circumstances after the date of this release or otherwise.
Del Taco Restaurants, Inc. Consolidated Balance
Sheets (In thousands, except share and per share data)
September 7, 2021 December 29, 2020
(Unaudited) Assets Current assets: Cash and cash
equivalents
$
3,384
$
7,912
Accounts and other receivables, net
5,292
5,463
Inventories
2,952
2,799
Prepaid expenses and other current assets
4,191
2,078
Assets held for sale
1,468
1,495
Total current assets
17,287
19,747
Property and equipment, net
146,276
146,706
Operating lease right-of-use assets
243,595
249,071
Goodwill
108,979
108,979
Trademarks
208,400
208,400
Intangible assets, net
8,870
9,754
Other assets, net
6,260
4,652
Total assets
$
739,667
$
747,309
Liabilities and shareholders’ equity Current
liabilities: Accounts payable
$
20,830
$
18,683
Other accrued liabilities
46,739
45,413
Current portion of finance lease obligations and other debt
59
190
Current portion of operating lease liabilities
21,286
22,648
Total current liabilities
88,914
86,934
Long-term debt, finance lease obligations and other debt, excluding
current portion, net
105,578
114,418
Operating lease liabilities, excluding current portion
246,220
251,958
Deferred income taxes
63,547
61,485
Other non-current liabilities
19,626
19,760
Total liabilities
523,885
534,555
Shareholders’ equity: Preferred stock, $0.0001 par value;
1,000,000 shares authorized; no shares
issued and outstanding
—
—
Common stock, $0.0001 par value; 400,000,000 shares authorized;
36,392,418 shares issued and outstanding at
September 7, 2021; 36,828,237 shares issued
and outstanding at December 29, 2020
4
4
Additional paid-in capital
324,269
333,712
Accumulated other comprehensive loss
—
—
Accumulated deficit
(108,491
)
(120,962
)
Total shareholders’ equity
215,782
212,754
Total liabilities and shareholders’ equity
$
739,667
$
747,309
Del Taco Restaurants, Inc. Consolidated Statements of
Comprehensive Income (Loss) (Unaudited) (In
thousands, except share and per share data) 12 Weeks
Ended 36 Weeks Ended September 7, 2021
September 8, 2020 September 7, 2021 September 8,
2020 Revenue: Company restaurant sales
$
111,981
$
109,522
$
328,563
$
305,116
Franchise revenue
5,586
5,169
16,395
14,080
Franchise advertising contributions
4,170
4,001
12,184
9,995
Franchise sublease and other income
2,534
2,090
7,631
5,971
Total revenue
124,271
120,782
364,773
335,162
Operating expenses: Restaurant operating expenses: Food and paper
costs
29,315
29,051
84,764
82,988
Labor and related expenses
37,210
35,450
109,932
101,995
Occupancy and other operating expenses
26,989
25,302
77,436
72,099
General and administrative
11,218
10,841
33,861
30,139
Franchise advertising expenses
4,170
4,001
12,184
9,995
Depreciation and amortization
6,021
6,055
17,952
18,477
Occupancy and other - franchise subleases and other
2,354
1,766
7,324
5,088
Pre-opening costs
152
63
407
359
Impairment of goodwill
—
—
—
87,277
Impairment of trademarks
—
—
—
11,900
Impairment of long-lived assets
—
—
—
8,287
Restaurant closure charges, net
690
413
1,488
1,406
Loss on disposal of assets and adjustments to assets held for sale,
net
37
140
91
697
Total operating expenses
118,156
113,082
345,439
430,707
Income (loss) from operations
6,115
7,700
19,334
(95,545
)
Other expense (income), net: Interest expense
660
941
2,082
3,730
Other income
—
—
(373
)
—
Total other expense, net
660
941
1,709
3,730
Income (loss) from operations before provision (benefit) for income
taxes
5,455
6,759
17,625
(99,275
)
Provision (benefit) for income taxes
1,617
962
5,154
(2,028
)
Net income (loss)
3,838
5,797
12,471
(97,247
)
Other comprehensive income: Reclassification of interest rate cap
amortization included in net income (loss), net of tax
—
—
—
52
Total other comprehensive income, net
—
—
—
52
Comprehensive income (loss)
$
3,838
$
5,797
$
12,471
$
(97,195
)
Earnings (loss) per share: Basic
$
0.11
$
0.16
$
0.34
$
(2.62
)
Diluted
$
0.10
$
0.15
$
0.34
$
(2.62
)
Weighted average shares outstanding Basic
36,455,883
37,293,390
36,642,380
37,152,419
Diluted
36,786,635
37,420,043
37,082,007
37,152,419
Del Taco Restaurants, Inc. Reconciliation of Net Income
(Loss) to EBITDA and Adjusted EBITDA (Unaudited) (In
thousands) 12 Weeks Ended 36 Weeks Ended
September 7, 2021
September 8, 2020
September 7, 2021
September 8, 2020
Net income (loss)
$
3,838
$
5,797
$
12,471
$
(97,247
)
Non-GAAP adjustments: Provision (benefit) for income taxes
1,617
962
5,154
(2,028
)
Interest expense
660
941
2,082
3,730
Depreciation and amortization
6,021
6,055
17,952
18,477
EBITDA
12,136
13,755
37,659
(77,068
)
Stock-based compensation expense (a)
1,427
1,267
4,346
3,905
Loss on disposal of assets and adjustments to assets held for sale,
net (b)
37
140
91
697
Impairment of goodwill (c)
—
—
—
87,277
Impairment of trademarks (d)
—
—
—
11,900
Impairment of long-lived assets (e)
—
—
—
8,287
Restaurant closure charges, net (f)
690
413
1,488
1,406
Amortization of favorable and unfavorable lease assets and
liabilities, net (g)
(72
)
(70
)
(243
)
(185
)
Pre-opening costs (h)
152
63
407
359
Sublease income for closed restaurants (i)
(282
)
(247
)
(807
)
(745
)
Executive transition costs (j)
—
—
—
287
Other income (k)
—
—
(373
)
—
Adjusted EBITDA
$
14,088
$
15,321
$
42,568
$
36,120
(a) Includes non-cash, stock-based compensation. (b) Loss on
disposal of assets and adjustments to assets held for sale, net
includes adjustments to reduce the carrying amount for assets held
for sale to estimated fair value less cost to sell, remeasurement
losses for assets held for sale reclassified back to held for use,
loss or gain on disposal of assets related to sales, retirements
and replacement or write-off of leasehold improvements or equipment
in the ordinary course of business, net gains or losses recorded
associated with the sale of company-operated restaurants to
franchisees, gains from the write-off of right-of-use assets and
operating lease liabilities related to the termination of leases
and net gains or losses recorded associated with sale-leaseback
transactions. (c) Includes non-cash charges related to impairment
of goodwill. (d) Includes non-cash charges related to impairment of
trademarks. (e) Includes non-cash charges related to impairment of
long-lived assets. (f) Restaurant closure costs include rent
expense, non-lease executory costs, other direct costs associated
with previously closed restaurants and future obligations
associated with the closure of a restaurant. (g) Includes
amortization of favorable lease assets and unfavorable lease
liabilities. (h) Pre-opening costs consist of costs directly
associated with the opening of new restaurants and incurred prior
to opening, including restaurant labor, supplies, cash and non-cash
rent expense and other related pre-opening costs. These are
generally incurred over the three to five months prior to opening.
(i) Includes other sublease income related to closed restaurants
that have been subleased to third parties. (j) Includes costs
associated with the transition of former Company executives, such
as severance expense. (k) During 2021, other income consists of a
legal settlement related to construction defects at a
company-operated restaurant.
Del Taco Restaurants, Inc.
Reconciliation of Company Restaurant Sales to Restaurant
Contribution (Unaudited) (In thousands)
12 Weeks Ended 36 Weeks Ended
September 7, 2021
September 8, 2020
September 7, 2021
September 8, 2020
Company restaurant sales
$
111,981
$
109,522
$
328,563
$
305,116
Restaurant operating expenses
93,514
89,803
272,132
257,082
Restaurant contribution
$
18,467
$
19,719
$
56,431
$
48,034
Restaurant contribution margin
16.5
%
18.0
%
17.2
%
15.7
%
Del Taco Restaurants, Inc.
Reconciliation of Income (Loss) from Operations to Restaurant
Contribution (Unaudited) (In thousands)
12 Weeks Ended 36 Weeks Ended September 7,
2021 September 8, 2020 September 7, 2021
September 8, 2020 Income (loss) from operations
$
6,115
$
7,700
$
19,334
$
(95,545
)
Less: Franchise revenue
(5,586
)
(5,169
)
(16,395
)
(14,080
)
Franchise advertising contributions
(4,170
)
(4,001
)
(12,184
)
(9,995
)
Franchise sublease income and other
(2,534
)
(2,090
)
(7,631
)
(5,971
)
Plus: General and administrative
11,218
10,841
33,861
30,139
Franchise advertising expenses
4,170
4,001
12,184
9,995
Depreciation and amortization
6,021
6,055
17,952
18,477
Occupancy and other - franchise subleases and other
2,354
1,766
7,324
5,088
Pre-opening costs
152
63
407
359
Impairment of goodwill
—
—
—
87,277
Impairment of trademarks
—
—
—
11,900
Impairment of long-lived assets
—
—
—
8,287
Restaurant closure charges, net
690
413
1,488
1,406
Loss on disposal of assets and adjustments to assets held for sale,
net
37
140
91
697
Restaurant contribution
$
18,467
$
19,719
$
56,431
$
48,034
Company restaurant sales
$
111,981
$
109,522
$
328,563
$
305,116
Restaurant contribution margin
16.5
%
18.0
%
17.2
%
15.7
%
Del Taco Restaurants, Inc. Reconciliation of Net Income
(Loss) to Adjusted Net Income (Unaudited) (In
thousands, except per share data) 12 Weeks Ended
36 Weeks Ended September 7, 2021 September 8,
2020 September 7, 2021 September 8, 2020 Net
income (loss), as reported
$
3,838
$
5,797
$
12,471
$
(97,247
)
Sublease income for closed restaurants (a)
(282
)
(247
)
(807
)
(745
)
Impairment of goodwill (b)
—
—
—
87,277
Impairment of trademarks (c)
—
—
—
11,900
Impairment of long-lived assets (d)
—
—
—
8,287
Restaurant closure charges, net (e)
690
413
1,488
1,406
Loss on disposal of assets and adjustments to assets held for sale,
net (f)
37
140
91
697
Other income (g)
—
—
(373
)
—
Executive transition costs (h)
—
—
—
287
Tax impact of adjustments (i)
(120
)
(82
)
(107
)
(5,891
)
Non-GAAP adjusted net income
$
4,163
$
6,021
$
12,763
$
5,971
Earnings (loss) per share (as reported): Basic
$
0.11
$
0.16
$
0.34
$
(2.62
)
Diluted
$
0.10
$
0.15
$
0.34
$
(2.62
)
Weighted average shares outstanding (as reported): Basic
36,455,883
37,293,390
36,642,380
37,152,419
Diluted
36,786,635
37,420,043
37,082,007
37,152,419
Adjusted earnings per share: Basic
$
0.11
$
0.16
$
0.35
$
0.16
Diluted
$
0.11
$
0.16
$
0.34
$
0.16
Shares used in computing adjusted earnings per share: Basic
36,455,883
37,293,390
36,642,380
37,152,419
Diluted
36,786,635
37,420,043
37,082,007
37,213,880
(a) Includes other sublease income related to closed restaurants
that have been subleased to third parties. (b) Includes non-cash
charges related to impairment of goodwill. (c) Includes non-cash
charges related to impairment of trademarks. (d) Includes non-cash
charges related to impairment of long-lived assets. (e) Restaurant
closure costs include rent expense, non-lease executory costs,
other direct costs associated with previously closed restaurants
and future obligations associated with the closure of a restaurant.
(f) Loss on disposal of assets and adjustments to assets held for
sale, net includes adjustments to reduce the carrying amount for
assets held for sale to estimated fair value less cost to sell,
remeasurement losses for assets held for sale reclassified back to
held for use, loss or gain on disposal of assets related to sales,
retirements and replacement or write-off of leasehold improvements
or equipment in the ordinary course of business, net gains or
losses recorded associated with the sale of company-operated
restaurants to franchisees, gains from the write-off of
right-of-use assets and operating lease liabilities related to the
termination of leases and net gains or losses recorded associated
with sale-leaseback transactions. (g) During 2021, other income
consists of a legal settlement related to construction defects at a
company-operated restaurant. (h) Includes costs associated with the
transition of former Company executives, such as severance expense.
(i) Represents the income tax associated with the adjustments in
(a) through (h) that are deductible for income tax purposes.
Del
Taco Restaurants, Inc. Restaurant Development
12 Weeks Ended 36 Weeks Ended September 7,
2021 September 8, 2020 September 7, 2021
September 8, 2020 Company-operated restaurant
activity: Beginning of period
297
294
295
300
Openings
1
1
3
3
Closures
(1)
—
(1)
(2)
Sold to franchisees
—
—
—
(6)
Restaurants at end of period
297
295
297
295
Franchise-operated restaurant activity: Beginning of period
304
299
301
296
Openings
3
4
8
5
Closures
(1)
(2)
(3)
(6)
Purchased from Company
—
—
—
6
Restaurants at end of period
306
301
306
301
Total restaurant activity: Beginning of period
601
593
596
596
Openings
4
5
11
8
Closures
(2)
(2)
(4)
(8)
Restaurants at end of period
603
596
603
596
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211014005989/en/
Investor Relations Contact: Raphael Gross (203) 682-8253
investor@deltaco.com
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