Del Taco (NASDAQ:TACO) reported its latest quarterly earnings results late today, bringing in mixed results that included in-line profit and sales that were a touch ahead of expectations, yet TACO stock was sliding after hours.
The California-based taco chain said that for its fourth quarter of fiscal 2018, it brought in revenue of $157.3 million, marking a 7.3% gain when compared to its year-ago total. Wall Street was calling for the business to amass sales of $156.9 million, according to a survey of three analysts polled by Zacks Investment Research.
Del Taco said that its earnings were down significantly from 89 cents per share during the fourth quarter of its fiscal 2017 to 15 cents per share in the fourth quarter of 2018. The restaurant business added that it brought in adjusted profit of $7 million, or 18 cents per share for the period, an increase of $800,000, or 2 cents per share, when compared to the year-ago period.
The Wall Street guidance predicted the company to rake in adjusted earnings of 18 cents per share, according to four analysts surveyed by Zacks. “We achieved our sixth consecutive year of system-wide comparable restaurant sales growth in 2018,” said Del Taco CEO John Cappasola.
“This was led by strong franchise comparable restaurant sales growth across a diverse 13 state footprint that supports Del Taco’s brand portability, including 25 new system-wide openings across ten states during 2018 of which nearly half were franchised restaurants,” he added.
For its fiscal 2019, Del Taco predicts earnings between 47 cents and 52 cents per share, while revenue is slated to be at around $522 million at the midpoint outlook.
TACO stock is down 4.6% after hours–shares had gained 4.3% during regular trading Monday.