Del Taco Restaurants (NASDAQ:TACO) Shares Down 17.4% on Disappointing Earnings

Del Taco Restaurants Inc (NASDAQ:TACO)’s share price traded down 17.4% during mid-day trading on Tuesday following a dissappointing earnings announcement. The company traded as low as $7.95 and last traded at $8.00, 3,819,405 shares traded hands during mid-day trading. An increase of 997% from the average session volume of 348,254 shares. The stock had previously closed at $9.68.

The restaurant operator reported $0.10 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.14 by ($0.04). Del Taco Restaurants had a return on equity of 4.62% and a net margin of 2.94%. The firm had revenue of $120.20 million during the quarter, compared to the consensus estimate of $119.27 million. During the same period in the previous year, the company posted $0.15 earnings per share. The company’s revenue for the quarter was up 2.0% on a year-over-year basis.

A number of equities research analysts have issued reports on the stock. ValuEngine raised shares of Del Taco Restaurants from a “hold” rating to a “buy” rating in a research report on Monday, July 8th. BidaskClub downgraded shares of Del Taco Restaurants from a “sell” rating to a “strong sell” rating in a research report on Friday, September 20th. Maxim Group reaffirmed a “buy” rating on shares of Del Taco Restaurants in a research report on Wednesday, July 31st. TheStreet downgraded shares of Del Taco Restaurants from a “b-” rating to a “c+” rating in a research report on Thursday, October 3rd. Finally, Wedbush reduced their target price on shares of Del Taco Restaurants from $13.00 to $11.00 and set an “outperform” rating for the company in a research report on Tuesday. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and three have given a buy rating to the stock. Del Taco Restaurants has a consensus rating of “Hold” and an average target price of $12.33.

Institutional investors have recently added to or reduced their stakes in the company. GSA Capital Partners LLP bought a new position in shares of Del Taco Restaurants during the 2nd quarter valued at approximately $206,000. Bessemer Group Inc. boosted its holdings in Del Taco Restaurants by 1.1% in the 2nd quarter. Bessemer Group Inc. now owns 111,900 shares of the restaurant operator’s stock worth $1,435,000 after buying an additional 1,200 shares during the period. Menta Capital LLC boosted its holdings in Del Taco Restaurants by 179.8% in the 2nd quarter. Menta Capital LLC now owns 30,432 shares of the restaurant operator’s stock worth $390,000 after buying an additional 19,554 shares during the period. Catalyst Capital Advisors LLC bought a new position in Del Taco Restaurants in the 2nd quarter worth approximately $1,047,000. Finally, Coatue Management LLC bought a new position in Del Taco Restaurants in the 2nd quarter worth approximately $1,998,000. 89.51% of the stock is owned by hedge funds and other institutional investors.

The company’s fifty day moving average is $10.26 and its 200 day moving average is $11.10. The company has a market capitalization of $348.33 million, a P/E ratio of 14.29, a P/E/G ratio of 1.50 and a beta of 0.26. The company has a current ratio of 0.18, a quick ratio of 0.14 and a debt-to-equity ratio of 0.88.

About Del Taco Restaurants (NASDAQ:TACO)

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 December 10, 2018, it operated approximately 560 restaurants across 14 states.

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