DB:22L

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Executive Summary

Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Del Taco Restaurants's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 22L's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

22L

10.4%

DE Hospitality

2.0%

DE Market


1 Year Return

-41.6%

22L

-39.2%

DE Hospitality

-2.6%

DE Market

Return vs Industry: 22L matched the German Hospitality industry which returned -43.8% over the past year.

Return vs Market: 22L underperformed the German Market which returned -3.9% over the past year.


Shareholder returns

22LIndustryMarket
7 Day6.6%10.4%2.0%
30 Day33.3%16.4%8.4%
90 Day-5.8%-38.2%-7.3%
1 Year-41.6%-41.6%-37.0%-39.2%-1.0%-2.6%
3 Year-49.5%-49.5%-55.4%-61.4%-6.6%-13.9%
5 Year-59.7%-59.7%-54.3%-63.9%1.1%-11.7%

Price Volatility Vs. Market

How volatile is Del Taco Restaurants's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Del Taco Restaurants undervalued compared to its fair value and its price relative to the market?

1.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 22L (€5.55) is trading above our estimate of fair value (€2.92)

Significantly Below Fair Value: 22L is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 22L is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 22L is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 22L's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 22L is good value based on its PB Ratio (1.1x) compared to the DE Hospitality industry average (1.8x).


Next Steps

Future Growth

How is Del Taco Restaurants forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

104.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 22L is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: 22L is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 22L's is expected to become profitable in the next 3 years.

Revenue vs Market: 22L's revenue (2.8% per year) is forecast to grow slower than the German market (5.6% per year).

High Growth Revenue: 22L's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 22L's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

How has Del Taco Restaurants performed over the past 5 years?

-37.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 22L is currently unprofitable.

Growing Profit Margin: 22L is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 22L is unprofitable, and losses have increased over the past 5 years at a rate of -37.4% per year.

Accelerating Growth: Unable to compare 22L's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 22L is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-36.2%).


Return on Equity

High ROE: 22L has a negative Return on Equity (-110.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Del Taco Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: 22L's short term assets ($45.3M) do not cover its short term liabilities ($81.1M).

Long Term Liabilities: 22L's short term assets ($45.3M) do not cover its long term liabilities ($511.5M).


Debt to Equity History and Analysis

Debt Level: 22L's debt to equity ratio (86.8%) is considered high.

Reducing Debt: 22L had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 22L has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 22L is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 11.3% per year.


Next Steps

Dividend

What is Del Taco Restaurants's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 22L's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 22L's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 22L's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 22L's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 22L's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

John Cappasola (45yo)

2.83yrs

Tenure

US$2,160,601

Compensation

Mr. John D. Cappasola Jr., has been the Chief Executive Officer of Del Taco Restaurants, Inc. since July 7, 2017 and President since January 2017. Mr. Cappasola served as Chief Brand Officer of Del Taco Re ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.16M) is above average for companies of similar size in the German market ($USD765.80K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Cappasola
CEO, President & Director2.83yrsUS$2.16m1.34% $2.9m
Steven Brake
Executive VP & CFO10.08yrsUS$1.10m0.81% $1.7m
Chad Gretzema
Chief Operating Officer0.67yrUS$688.58k0.30% $645.4k
Jack Tang
General Counsel & Secretaryno datano datano data
Jeff Little
Senior Vice President of Development4.17yrsno datano data
Tim Hackbardt
Chief Marketing Officer0.25yrno datano data

2.8yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 22L's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Cappasola
CEO, President & Director2.83yrsUS$2.16m1.34% $2.9m
Joseph Stein
Lead Independent Directorno dataUS$136.57k0.074% $159.3k
Lawrence Levy
Independent Chairman6.5yrsUS$140.52k0.83% $1.8m
Richard Melman
Independent Director4.92yrsUS$109.02k0.12% $251.2k
Ari Levy
Independent Director6.5yrsUS$106.00k0.72% $1.6m
Eileen Aptman
Independent Director4.92yrsUS$126.00k0.16% $344.5k

4.9yrs

Average Tenure

48yo

Average Age

Experienced Board: 22L's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 22L insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Del Taco Restaurants, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Del Taco Restaurants, Inc.
  • Ticker: 22L
  • Exchange: DB
  • Founded: 1964
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$236.577m
  • Listing Market Cap: US$215.356m
  • Shares outstanding: 37.08m
  • Website: https://www.deltaco.com

Number of Employees


Location

  • Del Taco Restaurants, Inc.
  • 25521 Commercentre Drive
  • Lake Forest
  • California
  • 92630
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TACONasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDJan 2014
22LDB (Deutsche Boerse AG)YesNew Common StockDEEURJan 2014

Biography

Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States. The company’s restaurants offer Mexican inspired and American classic dishes. As of March 11, 2020, it operated 600 restaurants in 15 states. The company was founded in 1964 and is headquartered in Lake Forest, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 07:03
End of Day Share Price2020/05/26 00:00
Earnings2020/03/24
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.