Del Taco (NASDAQ:TACO) earnings for the Mexican restaurant company’s third quarter of 2019 have TACO stock falling hard in after-hours trading on Monday. This is thanks to the company’s adjusted earnings per share of 10 cents on revenue of $120.20 million. For comparison, Wall Street was looking for EPS and revenue of 14 cents and $119.28 million for the quarter.
Now let’s take a closer look at the most recent Del Taco earnings report.
- Adjusted EPS for the quarter was 33.33% lower YoY compared to 15 cents.
- Revenue comes in 2% higher than the $117.83 million reported during the same time last year.
- Operating losses are down from operating income in the third quarter of 2018.
- The Del Taco earnings report also includes a net loss.
- That’s a change from the company reporting net income in the same period of the year prior.
John Cappasola, President and CEO of Del Taco, has this to say about the TACO stock earnings for the third quarter of 2019.
“Flattish comparable restaurant sales at company-operated restaurants coupled with inflationary pressures on food, labor, and operating expenses resulted in lower restaurant contribution and adjusted EBITDA compared to the year-ago period.”
The Del Taco earnings report also includes a guidance update for the full year of 2019. It nows expects adjusted per-share earnings between 44 cents and 44 cents on revenue ranging from $512 million to $515 million. That’s bad news for TACO stock with Wall Street expecting adjusted EPS of 50 cents and revenue of $514.28m million for the year.
TACO stock was down 9.56% after hours on Monday. The stock closed the day out up 2.93%, but is down 3.20% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.