NasdaqCM:TACO

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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. More Details

Rewards

Earnings are forecast to grow 87.77% per year

Risk Analysis

No risks detected for TACO from our risk checks.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


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: TACO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TACO's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

TACO

1.8%

US Hospitality

1.3%

US Market


1 Year Return

21.7%

TACO

-11.5%

US Hospitality

21.0%

US Market

Return vs Industry: TACO exceeded the US Hospitality industry which returned -9.1% over the past year.

Return vs Market: TACO matched the US Market which returned 20.9% over the past year.


Shareholder returns

TACOIndustryMarket
7 Day2.4%1.8%1.3%
30 Day19.4%25.0%12.1%
90 Day2.9%14.7%4.8%
1 Year21.7%21.7%-10.2%-11.5%23.7%21.0%
3 Year-27.8%-27.8%-7.0%-13.0%46.6%36.8%
5 Year-21.0%-21.0%33.2%19.9%94.6%73.2%

Long-Term 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

Valuation

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

1.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TACO ($8.85) is trading above our estimate of fair value ($3.71)

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


Price To Earnings Ratio

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

PE vs Market: TACO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TACO is good value based on its PB Ratio (1.6x) compared to the US Hospitality industry average (2.7x).


Next Steps

Future Growth

How is Del Taco Restaurants forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

87.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TACO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: TACO's revenue (4.2% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: TACO's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TACO's Return on Equity is forecast to be low in 3 years time (7.5%).


Next Steps

Past Performance

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

-65.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TACO is currently unprofitable.

Growing Profit Margin: TACO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TACO is unprofitable, and losses have increased over the past 5 years at a rate of 65.2% per year.

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

Earnings vs Industry: TACO is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-53.8%).


Return on Equity

High ROE: TACO has a negative Return on Equity (-101.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Del Taco Restaurants's financial position?


Financial Position Analysis

Short Term Liabilities: TACO's short term assets ($15.8M) do not cover its short term liabilities ($83.6M).

Long Term Liabilities: TACO's short term assets ($15.8M) do not cover its long term liabilities ($454.2M).


Debt to Equity History and Analysis

Debt Level: TACO's debt to equity ratio (59.4%) is considered high.

Reducing Debt: TACO's debt to equity ratio has increased from 44% to 59.4% over the past 5 years.


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 TACO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TACO is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 7.9% 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 TACO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TACO'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 TACO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TACO'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 TACO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

John Cappasola (46 yo)

3.33yrs

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 ($USD2.16M) is about average for companies of similar size in the US market ($USD1.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Cappasola
CEO, President & Director3.33yrsUS$2.16m1.49%
$ 4.9m
Steven Brake
Executive VP & CFO10.58yrsUS$1.10m0.90%
$ 3.0m
Chad Gretzema
Chief Operating Officer1.17yrsUS$688.58k0.37%
$ 1.2m
Raphael Gross
Managing Director of Investor Relationsno datano datano data
Jack Tang
General Counsel & Secretaryno datano datano data
Jeff Little
Senior Vice President of Development4.67yrsno datano data
Tim Hackbardt
Chief Marketing Officer0.75yrno datano data

3.3yrs

Average Tenure

47.5yo

Average Age

Experienced Management: TACO's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Cappasola
CEO, President & Director3.33yrsUS$2.16m1.49%
$ 4.9m
Joseph Stein
Lead Independent Directorno dataUS$136.57k0.095%
$ 315.3k
Lawrence Levy
Independent Chairman7yrsUS$140.52k1.01%
$ 3.3m
Richard Melman
Independent Director5.42yrsUS$109.02k0.16%
$ 527.9k
Ari Levy
Independent Director7yrsUS$106.00k1.32%
$ 4.4m
Eileen Aptman
Independent Director5.42yrsUS$126.00k0.16%
$ 524.9k

5.4yrs

Average Tenure

49yo

Average Age

Experienced Board: TACO's board of directors are considered experienced (5.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TACO 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: TACO
  • Exchange: NasdaqCM
  • Founded: 1964
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: US$330.323m
  • Shares outstanding: 37.32m
  • 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 c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 00:12
End of Day Share Price2020/11/30 00:00
Earnings2020/09/08
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.