System-Wide Comparable Restaurant Sales
Increased 17.8% Compared to the Prior-Year Fiscal Quarter
Income from Operations Growth of 148.5%
Compared to Last Year
Signs New Franchise Development Agreement for
12 New Florida Panhandle Restaurants
Expects System-wide New Unit Growth to Achieve
5% in 2023 Led by Franchising
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 second quarter 2021 financial results for the 12-week period
ended June 15, 2021 and provided a business update.
Management Commentary
John D. Cappasola, Jr., President and Chief Executive Officer of
Del Taco, commented, “We generated outstanding revenue and
profitability growth during the second quarter as we leveraged our
top-line momentum across all key cost inputs. Top-line growth was
characterized by system-wide comparable restaurant sales growth
versus 2020 in the high teens, representing mid-single digit growth
versus 2019. Importantly, compared to 2019 all day parts were
positive during the second quarter except for breakfast, which has
since improved to flat in the third quarter, while late snack and
graveyard were our top performing dayparts compared to 2019, aided
by a strong delivery mix that again reached approximately 7% of
sales.”
Cappasola continued, “Looking ahead, our focus on driving sales
includes plans to introduce innovative new products and platforms
along with the launch of our new Del App and loyalty program this
September. In fact, just today we introduced a new breakfast
platform centered on Double Cheese Breakfast Tacos that is aimed at
capitalizing on the continued normalization of morning routines and
strong breakfast seasonality as we head into Fall. Later this
summer, we will follow this up with yet another exciting platform
launch, Stuffed Quesadilla Tacos, which puts us in a great position
to generate guest excitement and momentum in the back half of 2021
and entering 2022.”
Cappasola concluded, “We are very encouraged that Del Taco’s
franchise led system growth is gaining momentum as we now expect to
open thirteen system-wide restaurants in 2021. We recently
announced an agreement with a seasoned multi-concept QSR franchise
group for 12 restaurants across the Florida panhandle, representing
our third franchise development agreement signed this year for a
total of 30 future restaurants. We believe these agreements, plus
our expanding backlog and other late-stage agreements we are
finalizing, put us in a position to deliver system-wide new unit
growth of 5% starting in 2023.”
Fiscal Second Quarter 2021 Highlights
- Comparable restaurant sales results compared to the fiscal
second quarter 2020:
- System-wide comparable restaurant sales increased 17.8%;
- Company-operated comparable restaurant sales increased
18.3%;
- Franchise comparable restaurant sales increased 17.2%;
- Total revenue of $125.0 million, representing 19.5% growth from
the fiscal second quarter 2020;
- Company-operated restaurant sales of $113.0 million,
representing 18.6% growth from the fiscal second quarter 2020;
- Net income of $6.0 million, or $0.16 per diluted share,
compared to net loss of $0.6 million, or $0.02 per diluted share,
in the fiscal second quarter 2020;
- Adjusted net income* of $6.1 million, or $0.16 per diluted
share, compared to adjusted net loss* of $75 thousand, or $0.00 per
diluted share, in the fiscal second quarter 2020;
- Restaurant contribution* margin of 18.9% compared to 16.4% in
the fiscal second quarter 2020;
- Adjusted EBITDA* of $16.9 million compared to $12.1 million in
the fiscal second quarter 2020; and
- Two franchised restaurant openings.
* Adjusted net income/loss, 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 Second Quarter 2021 Financial
Results
Total revenue increased 19.5% to $125.0 million compared to
$104.6 million in the fiscal second quarter 2020. Comparable
restaurant sales increased 17.8% system-wide, increased 18.3% at
company-operated restaurants, and increased 17.2% at franchised
restaurants.
Net income was $6.0 million, or $0.16 per diluted share,
compared to net loss of $0.6 million, or $0.02 per diluted share,
last year.
Adjusted net income*, which excludes various items, was $6.1
million, or $0.16 per diluted share, compared to adjusted net loss*
of $75 thousand, or $0.00 per diluted share, last year.
Restaurant contribution* grew 36.9% to $21.4 million compared to
$15.6 million in the fiscal second quarter 2020. As a percentage of
company-operated restaurant sales, restaurant contribution margin
increased 250 basis points year-over-year to 18.9%. The increase
from the year-ago period was the result of an approximate 140 basis
point decrease in food and paper costs, an approximate 30 basis
point decrease in labor and related expenses, and an approximate 80
basis point decrease in occupancy and other operating expenses.
Adjusted EBITDA* grew 39.5% to $16.9 million compared to $12.1
million in the fiscal second quarter 2020.
Liquidity
As of June 15, 2021, Del Taco’s debt, net of cash, totaled
$103.0 million compared to $106.7 million at the end of fiscal year
2020. At the end of the fiscal second quarter 2021 the Company had
$126.6 million of remaining availability under its revolving credit
facility.
Common Stock Repurchase Program
Del Taco repurchased 210,401 shares of common stock at an
average price of $10.07 per share for a total of $2.1 million
during the fiscal second quarter 2021. At the end of the fiscal
second quarter approximately $15.0 million remained under the $75
million repurchase authorization.
Dividend Program Announcement
The Board of Directors has authorized a quarterly cash dividend
of $0.04 per share of common stock payable on August 25, 2021 to
shareholders of record at the close of business on August 11,
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 second quarter 2021, two franchised
restaurants opened.
The Company recently signed a new franchise development
agreement for 12 restaurants across the Florida panhandle with an
experienced multi-concept quick-service franchise group. This
represents the third development agreement Del Taco has signed in
2021 for a total of 30 restaurants, all in the Southeast.
Based on the current development backlog, the three newly signed
development agreements and additional agreements the Company
expects to announce shortly, Del Taco expects system-wide openings
will continue to be led by franchisees and will increase modestly
in 2022 compared to the 13 expected system-wide 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 up to
2% (up from 1% previously), inclusive of approximately 5% inflation
in the fiscal third quarter compared to the prior year and
approximately 4% inflation in the fiscal fourth quarter compared to
the prior year;
- Labor and related inflation of approximately 6%;
- Menu price increase of approximately 4%;
- 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% (up from 27%
previously);
- Capital expenditures in the low $30 million range, 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 (up from eight previously) franchised restaurant openings,
of which seven have already opened, for 13 (up from twelve
previously) 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 13721213.
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/loss 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/loss 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)
June 15, 2021 December 29, 2020
(Unaudited) Assets Current assets: Cash and cash
equivalents
$
6,580
$
7,912
Accounts and other receivables, net
6,553
5,463
Inventories
2,557
2,799
Prepaid expenses and other current assets
2,405
2,078
Assets held for sale
1,468
1,495
Total current assets
19,563
19,747
Property and equipment, net
145,638
146,706
Operating lease right-of-use assets
246,258
249,071
Goodwill
108,979
108,979
Trademarks
208,400
208,400
Intangible assets, net
9,144
9,754
Other assets, net
5,772
4,652
Total assets
$
743,754
$
747,309
Liabilities and shareholders’ equity Current
liabilities: Accounts payable
$
17,221
$
18,683
Other accrued liabilities
46,338
45,413
Current portion of finance lease obligations and other debt
88
190
Current portion of operating lease liabilities
21,612
22,648
Total current liabilities
85,259
86,934
Long-term debt, finance lease obligations and other debt, excluding
current portion, net
109,525
114,418
Operating lease liabilities, excluding current portion
249,198
251,958
Deferred income taxes
62,225
61,485
Other non-current liabilities
19,453
19,760
Total liabilities
525,660
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;
36,548,895 shares issued and outstanding at June 15, 2021;
36,828,237 shares issued and outstanding at December 29, 2020
4
4
Additional paid-in capital
330,419
333,712
Accumulated other comprehensive loss
—
—
Accumulated deficit
(112,329
)
(120,962
)
Total shareholders’ equity
218,094
212,754
Total liabilities and shareholders’ equity
$
743,754
$
747,309
Del Taco Restaurants, Inc. Consolidated Statements
of Comprehensive Income (Loss) (Unaudited) (In
thousands, except share and per share data) 12 Weeks
Ended 24 Weeks Ended June 15, 2021 June 16,
2020 June 15, 2021 June 16, 2020 Revenue:
Company restaurant sales
$
113,004
$
95,261
$
216,582
$
195,594
Franchise revenue
5,604
4,520
10,809
8,911
Franchise advertising contributions
4,189
2,783
8,014
5,994
Franchise sublease and other income
2,174
2,006
5,097
3,881
Total revenue
124,971
104,570
240,502
214,380
Operating expenses: Restaurant operating expenses: Food and paper
costs
28,797
25,642
55,449
53,937
Labor and related expenses
37,214
31,609
72,722
66,545
Occupancy and other operating expenses
25,605
22,389
50,447
46,797
General and administrative
11,382
9,432
22,643
19,298
Franchise advertising expenses
4,189
2,783
8,014
5,994
Depreciation and amortization
5,984
6,285
11,931
12,422
Occupancy and other - franchise subleases and other
2,092
1,727
4,970
3,322
Pre-opening costs
59
63
255
296
Impairment of goodwill
—
—
—
87,277
Impairment of trademarks
—
—
—
11,900
Impairment of long-lived assets
—
—
—
8,287
Restaurant closure charges, net
386
499
798
993
Loss on disposal of assets and adjustments to assets held for sale,
net
52
435
54
557
Total operating expenses
115,760
100,864
227,283
317,625
Income (loss) from operations
9,211
3,706
13,219
(103,245
)
Other expense (income), net: Interest expense
701
1,281
1,422
2,789
Other income
—
—
(373
)
—
Total other expense, net
701
1,281
1,049
2,789
Income (loss) from operations before provision (benefit) for income
taxes
8,510
2,425
12,170
(106,034
)
Provision (benefit) for income taxes
2,508
3,001
3,537
(2,990
)
Net income (loss)
6,002
(576
)
8,633
(103,044
)
Other comprehensive income: Reclassification of interest rate cap
amortization included in net income (loss), net of tax
—
7
—
52
Total other comprehensive income, net
—
7
—
52
Comprehensive income (loss)
$
6,002
$
(569
)
$
8,633
$
(102,992
)
Earnings (loss) per share: Basic
$
0.16
$
(0.02
)
$
0.24
$
(2.78
)
Diluted
$
0.16
$
(0.02
)
$
0.23
$
(2.78
)
Weighted average shares outstanding Basic
36,709,588
37,086,962
36,735,629
37,081,511
Diluted
37,269,233
37,086,962
37,229,694
37,081,511
Del Taco Restaurants, Inc. Reconciliation of Net
Income (Loss) to EBITDA and Adjusted EBITDA (Unaudited)
(In thousands) 12 Weeks Ended 24 Weeks
Ended June 15, 2021 June 16, 2020 June 15,
2021 June 16, 2020 Net income (loss)
$
6,002
$
(576
)
$
8,633
$
(103,044
)
Non-GAAP adjustments: Provision (benefit) for income taxes
2,508
3,001
3,537
(2,990
)
Interest expense
701
1,281
1,422
2,789
Depreciation and amortization
5,984
6,285
11,931
12,422
EBITDA
15,195
9,991
25,523
(90,823
)
Stock-based compensation expense (a)
1,519
1,413
2,919
2,638
Loss on disposal of assets and adjustments to assets held for sale,
net (b)
52
435
54
557
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)
386
499
798
993
Amortization of favorable and unfavorable lease assets and
liabilities, net (g)
(85
)
(66
)
(171
)
(115
)
Pre-opening costs (h)
59
63
255
296
Sublease income for closed restaurants (i)
(269
)
(248
)
(525
)
(498
)
Executive transition costs (j)
—
—
—
287
Other income (k)
—
—
(373
)
—
Adjusted EBITDA
$
16,857
$
12,087
$
28,480
$
20,799
(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 24 Weeks Ended
June 15, 2021 June 16, 2020 June 15, 2021
June 16, 2020 Company restaurant sales
$
113,004
$
95,261
$
216,582
$
195,594
Restaurant operating expenses
91,616
79,640
178,618
167,279
Restaurant contribution
$
21,388
$
15,621
$
37,964
$
28,315
Restaurant contribution margin
18.9
%
16.4
%
17.5
%
14.5
%
Del Taco Restaurants, Inc.
Reconciliation of Income (Loss) from Operations to Restaurant
Contribution (Unaudited) (In thousands)
12 Weeks Ended 24 Weeks Ended June 15, 2021
June 16, 2020 June 15, 2021 June 16, 2020
Income (loss) from operations
$
9,211
$
3,706
$
13,219
$
(103,245
)
Less: Franchise revenue
(5,604
)
(4,520
)
(10,809
)
(8,911
)
Franchise advertising contributions
(4,189
)
(2,783
)
(8,014
)
(5,994
)
Franchise sublease income and other
(2,174
)
(2,006
)
(5,097
)
(3,881
)
Plus: General and administrative
11,382
9,432
22,643
19,298
Franchise advertising expenses
4,189
2,783
8,014
5,994
Depreciation and amortization
5,984
6,285
11,931
12,422
Occupancy and other - franchise subleases and other
2,092
1,727
4,970
3,322
Pre-opening costs
59
63
255
296
Impairment of goodwill
—
—
—
87,277
Impairment of trademarks
—
—
—
11,900
Impairment of long-lived assets
—
—
—
8,287
Restaurant closure charges, net
386
499
798
993
Loss on disposal of assets and adjustments to assets held for sale,
net
52
435
54
557
Restaurant contribution
$
21,388
$
15,621
$
37,964
$
28,315
Company restaurant sales
$
113,004
$
95,261
$
216,582
$
195,594
Restaurant contribution margin
18.9
%
16.4
%
17.5
%
14.5
%
Del Taco Restaurants, Inc. Reconciliation of Net
Income (Loss) to Adjusted Net Income (Loss) (Unaudited)
(In thousands, except per share data) 12 Weeks
Ended 24 Weeks Ended June 15, 2021 June 16,
2020 June 15, 2021 June 16, 2020 Net income
(loss), as reported
$
6,002
$
(576
)
$
8,633
$
(103,044
)
Sublease income for closed restaurants (a)
(269
)
(248
)
(525
)
(498
)
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)
386
499
798
993
Loss on disposal of assets and adjustments to assets held for sale,
net (f)
52
435
54
557
Other income (g)
—
—
(373
)
—
Executive transition costs (h)
—
—
—
287
Tax impact of adjustments (i)
(45
)
(185
)
13
(5,809
)
Non-GAAP adjusted net income (loss)
$
6,126
$
(75
)
$
8,600
$
(50
)
Earnings (loss) per share (as reported): Basic
$
0.16
$
(0.02
)
$
0.24
$
(2.78
)
Diluted
$
0.16
$
(0.02
)
$
0.23
$
(2.78
)
Weighted average shares outstanding (as reported): Basic
36,709,588
37,086,962
36,735,629
37,081,511
Diluted
37,269,233
37,086,962
37,229,694
37,081,511
Adjusted earnings per share: Basic
$
0.17
$
(0.00
)
$
0.23
$
(0.00
)
Diluted
$
0.16
$
(0.00
)
$
0.23
$
(0.00
)
Shares used in computing adjusted earnings per share: Basic
36,709,588
37,086,962
36,735,629
37,081,511
Diluted
37,269,233
37,086,962
37,229,694
37,081,511
(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 12
Weeks Ended June 15, 2021 June 16, 2020 June
15, 2021 June 16, 2020 Company-operated restaurant
activity: Beginning of period
297
296
295
300
Openings
—
—
2
2
Closures
—
(1
)
—
(2
)
Sold to franchisees
—
(1
)
—
(6
)
Restaurants at end of period
297
294
297
294
Franchise-operated restaurant activity: Beginning of period
302
300
301
296
Openings
2
—
5
1
Closures
—
(2
)
(2
)
(4
)
Purchased from Company
—
1
—
6
Restaurants at end of period
304
299
304
299
Total restaurant activity: Beginning of period
599
596
596
596
Openings
2
—
7
3
Closures
—
(3
)
(2
)
(6
)
Restaurants at end of period
601
593
601
593
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210722005851/en/
Investor Relations Contact: Raphael Gross (203) 682-8253
investor@deltaco.com
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