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Del Taco Restaurants

Nasdaq:TACO
Snowflake Description

Moderate growth potential with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TACO
Nasdaq
$116M
Market Cap
  1. Home
  2. US
  3. Consumer Services
Company description

Del Taco Restaurants, Inc. develops, franchises, owns, and operates Del Taco quick-service Mexican-American restaurants in the United States. The last earnings update was 21 days ago. More info.


Add to Portfolio Compare Print
  • Del Taco Restaurants has significant price volatility in the past 3 months.
TACO Share Price and Events
7 Day Returns
-13.3%
NasdaqCM:TACO
-14.3%
US Hospitality
-4.1%
US Market
1 Year Returns
-69.4%
NasdaqCM:TACO
-50.9%
US Hospitality
-14.9%
US Market
TACO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Del Taco Restaurants (TACO) -13.3% -48.1% -60.4% -69.4% -75.6% -77.7%
US Hospitality -14.3% -41.1% -53.1% -50.9% -43.2% -42.5%
US Market -4.1% -19.1% -23.4% -14.9% 3.5% 14.5%
1 Year Return vs Industry and Market
  • TACO underperformed the Hospitality industry which returned -50.9% over the past year.
  • TACO underperformed the Market in United States of America which returned -14.9% over the past year.
Price Volatility
TACO
Industry
5yr Volatility vs Market
Related Companies

TACO Value

 Is Del Taco Restaurants undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Del Taco Restaurants to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Del Taco Restaurants.

NasdaqCM:TACO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqCM:TACO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Hospitality Unlevered Beta Simply Wall St/ S&P Global 0.79
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.794 (1 + (1- 21%) (360.73%))
2.377
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (2 * 5.44%)
12.62%

Discounted Cash Flow Calculation for NasdaqCM:TACO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Del Taco Restaurants is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqCM:TACO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.62%)
2020 13.36 Analyst x2 11.86
2021 14.55 Analyst x1 11.47
2022 15.42 Est @ 6.01% 10.80
2023 16.15 Est @ 4.73% 10.04
2024 16.77 Est @ 3.83% 9.26
2025 17.31 Est @ 3.2% 8.48
2026 17.79 Est @ 2.76% 7.74
2027 18.22 Est @ 2.46% 7.04
2028 18.63 Est @ 2.24% 6.39
2029 19.02 Est @ 2.09% 5.80
Present value of next 10 years cash flows $88.00
NasdaqCM:TACO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $19.02 × (1 + 1.74%) ÷ (12.62% – 1.74%)
$177.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $177.87 ÷ (1 + 12.62%)10
$54.19
NasdaqCM:TACO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $88.00 + $54.19
$142.19
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $142.19 / 37.08
$3.83
NasdaqCM:TACO Discount to Share Price
Calculation Result
Value per share (USD) From above. $3.83
Current discount Discount to share price of $3.14
= -1 x ($3.14 - $3.83) / $3.83
18.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Del Taco Restaurants is available for.
Intrinsic value
18%
Share price is $3.14 vs Future cash flow value of $3.83
Current Discount Checks
For Del Taco Restaurants to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Del Taco Restaurants's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Del Taco Restaurants's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Del Taco Restaurants's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Del Taco Restaurants's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:TACO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-3.20
NasdaqCM:TACO Share Price ** NasdaqCM (2020-04-02) in USD $3.14
United States of America Hospitality Industry PE Ratio Median Figure of 65 Publicly-Listed Hospitality Companies 11.98x
United States of America Market PE Ratio Median Figure of 2,944 Publicly-Listed Companies 12.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Del Taco Restaurants.

NasdaqCM:TACO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:TACO Share Price ÷ EPS (both in USD)

= 3.14 ÷ -3.20

-0.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Del Taco Restaurants is loss making, we can't compare its value to the US Hospitality industry average.
  • Del Taco Restaurants is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Del Taco Restaurants's expected growth come at a high price?
Raw Data
NasdaqCM:TACO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
137.3%per year
United States of America Hospitality Industry PEG Ratio Median Figure of 50 Publicly-Listed Hospitality Companies 0.55x
United States of America Market PEG Ratio Median Figure of 2,008 Publicly-Listed Companies 0.91x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Del Taco Restaurants, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Del Taco Restaurants's assets?
Raw Data
NasdaqCM:TACO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $8.15
NasdaqCM:TACO Share Price * NasdaqCM (2020-04-02) in USD $3.14
United States of America Hospitality Industry PB Ratio Median Figure of 106 Publicly-Listed Hospitality Companies 1.19x
United States of America Market PB Ratio Median Figure of 5,142 Publicly-Listed Companies 1.22x
NasdaqCM:TACO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:TACO Share Price ÷ Book Value per Share (both in USD)

= 3.14 ÷ 8.15

0.39x

* Primary Listing of Del Taco Restaurants.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Del Taco Restaurants is good value based on assets compared to the US Hospitality industry average.
X
Value checks
We assess Del Taco Restaurants's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Hospitality industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Hospitality industry average (and greater than 0)? (1 check)
  5. Del Taco Restaurants has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TACO Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
137.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Del Taco Restaurants expected to grow at an attractive rate?
  • Del Taco Restaurants's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Del Taco Restaurants's earnings growth is expected to exceed the United States of America market average.
  • Del Taco Restaurants's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:TACO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:TACO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 137.3%
NasdaqCM:TACO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -0.5%
United States of America Hospitality Industry Earnings Growth Rate Market Cap Weighted Average 16.8%
United States of America Hospitality Industry Revenue Growth Rate Market Cap Weighted Average 8.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqCM:TACO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:TACO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 507 51 14 4
2020-12-31 497 46 12 4
2020-04-03
NasdaqCM:TACO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 513 49 -118
2019-09-10 513 56 1
2019-06-18 511 58 15
2019-03-26 507 59 17
2019-01-01 505 62 19
2018-09-11 495 58 49
2018-06-19 488 63 48
2018-03-27 479 58 49
2018-01-02 471 58 50
2017-09-12 475 63 23
2017-06-20 469 61 23
2017-03-28 460 61 22
2017-01-03 452 58 21

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Del Taco Restaurants's earnings are expected to grow significantly at over 20% yearly.
  • Del Taco Restaurants's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqCM:TACO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Del Taco Restaurants Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:TACO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.38 0.40 0.36 3.00
2020-12-31 0.38 0.40 0.35 3.00
2020-04-03
NasdaqCM:TACO Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -3.20
2019-09-10 0.04
2019-06-18 0.40
2019-03-26 0.45
2019-01-01 0.50
2018-09-11 1.26
2018-06-19 1.24
2018-03-27 1.27
2018-01-02 1.29
2017-09-12 0.58
2017-06-20 0.58
2017-03-28 0.57
2017-01-03 0.54

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Del Taco Restaurants is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Del Taco Restaurants's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Del Taco Restaurants has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TACO Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Del Taco Restaurants's growth in the last year to its industry (Hospitality).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Del Taco Restaurants does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Del Taco Restaurants's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Del Taco Restaurants's 1-year growth to the US Hospitality industry average as it is not currently profitable.
Earnings and Revenue History
Del Taco Restaurants's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Del Taco Restaurants Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:TACO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 512.95 -118.29 45.09
2019-09-10 513.15 1.49 65.56
2019-06-18 510.78 15.04 64.54
2019-03-26 507.13 17.16 64.05
2019-01-01 505.49 18.96 45.36
2018-09-11 494.74 48.52 61.39
2018-06-19 487.90 47.74 60.70
2018-03-27 478.67 48.86 59.39
2018-01-02 471.46 49.87 39.75
2017-09-12 475.15 22.71 57.57
2017-06-20 468.58 22.56 57.05
2017-03-28 460.03 22.09 56.10
2017-01-03 452.08 20.91 55.15
2016-09-06 435.26 17.71 53.60
2016-06-14 429.41 12.99 51.83
2016-03-22 426.99 12.76 50.26
2015-12-29 424.00 4.76 49.29
2015-09-08 416.30 -8.20 46.11
2015-06-16 410.13 -7.54 45.37
2015-03-24 490.44 -13.95 51.21
2014-12-30 396.02 -9.26 43.80
2013-12-31 370.99 -6.54 38.01

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Del Taco Restaurants has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Del Taco Restaurants has efficiently used its assets last year compared to the US Hospitality industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Del Taco Restaurants improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Del Taco Restaurants's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Hospitality industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Del Taco Restaurants has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TACO Health

 How is Del Taco Restaurants's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Del Taco Restaurants's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Del Taco Restaurants's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Del Taco Restaurants's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Del Taco Restaurants's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Del Taco Restaurants Company Filings, last reported 3 months ago.

NasdaqCM:TACO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 302.11 144.23 1.42
2019-09-10 414.51 150.16 8.57
2019-06-18 423.31 146.09 5.25
2019-03-26 422.70 154.01 9.02
2019-01-01 422.27 178.43 7.15
2018-09-11 423.28 169.17 6.63
2018-06-19 421.17 170.32 13.15
2018-03-27 420.16 153.09 10.04
2018-01-02 416.25 152.00 6.56
2017-09-12 382.47 146.88 7.02
2017-06-20 379.25 160.20 4.93
2017-03-28 374.48 173.47 9.32
2017-01-03 377.33 173.74 8.80
2016-09-06 370.67 169.11 11.60
2016-06-14 370.99 167.39 7.30
2016-03-22 371.16 167.68 13.40
2015-12-29 368.38 167.97 10.19
2015-09-08 362.19 159.58 7.17
2015-06-16 5.00 0.26
2015-03-24 5.00 0.00 0.07
2014-12-30 81.40 321.05 8.55
2013-12-31 5.00 0.00 1.08
  • Del Taco Restaurants's level of debt (47.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (393.8% vs 47.7% today).
  • Debt is well covered by operating cash flow (34%, greater than 20% of total debt).
  • Del Taco Restaurants is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Del Taco Restaurants's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Del Taco Restaurants has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TACO Dividends

 What is Del Taco Restaurants's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Del Taco Restaurants dividends.
If you bought $2,000 of Del Taco Restaurants shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Del Taco Restaurants's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Del Taco Restaurants's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqCM:TACO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Hospitality Industry Average Dividend Yield Market Cap Weighted Average of 39 Stocks 6.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1941 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2%
United States of America Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqCM:TACO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Del Taco Restaurants has not reported any payouts.
  • Unable to verify if Del Taco Restaurants's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Del Taco Restaurants's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Del Taco Restaurants has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Del Taco Restaurants's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Del Taco Restaurants afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Del Taco Restaurants has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TACO Management

 What is the CEO of Del Taco Restaurants's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Cappasola
COMPENSATION $2,969,569
AGE 45
TENURE AS CEO 2.8 years
CEO Bio

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 Restaurants, Inc. since February 2011 until July 7, 2017 and served as its President since January 2017 until July 7, 2017 and served as its Executive Vice President from July 2012 to January 5, 2017. Mr. Cappasola has been the Chief Brand Officer and Executive Vice President of Del Taco LLC at Del Taco Restaurant Properties I, Del Taco Restaurant Properties II, Del Taco Restaurant Properties III and Del Taco Income Properties IV since February 2011 and also serves as its Executive Vice President. Mr. Cappasola served as Vice President of Marketing Development at Del Taco, LLC from November 2008 to March 2009 and its Vice President of Marketing from March 2009 to February 2011. He previously served as Vice President of Marketing at Del Taco Restaurant Properties II and Del Taco Restaurant Properties I from March 2009 to February 2011 and Vice President of Marketing Development from September 2008 to March 2009. He spent 16 years with Blockbuster in market sales development, field marketing and in various operational, strategic and concept development disciplines. From August 2002 to September 2008, he held various positions in marketing, strategic development and operations at Blockbuster, Inc. He has been Director of Del Taco Restaurants, Inc. since July 7, 2017. Mr. Cappasola holds a bachelor of science degree in business management from california coast university.

CEO Compensation
  • John's compensation has increased whilst company is loss making.
  • John's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Del Taco Restaurants management team in years:

2.8
Average Tenure
46.5
Average Age
  • The tenure for the Del Taco Restaurants management team is about average.
Management Team

John Cappasola

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
45
TENURE
2.8 yrs

Steve Brake

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
46
TENURE
10 yrs

Chad Gretzema

TITLE
Chief Operating Officer
AGE
47
TENURE
0.6 yrs

Jack Tang

TITLE
General Counsel & Secretary

Jeff Little

TITLE
Senior Vice President of Development
TENURE
4.1 yrs

Tim Hackbardt

TITLE
Chief Marketing Officer
AGE
55
TENURE
0.2 yrs
Board of Directors Tenure

Average tenure and age of the Del Taco Restaurants board of directors in years:

4.8
Average Tenure
48
Average Age
  • The tenure for the Del Taco Restaurants board of directors is about average.
Board of Directors

Larry Levy

TITLE
Chairman
COMPENSATION
$136K
AGE
75
TENURE
6.4 yrs

John Cappasola

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
45
TENURE
2.8 yrs

Eileen Aptman

TITLE
Independent Director
COMPENSATION
$126K
AGE
51
TENURE
4.8 yrs

Joe Stein

TITLE
Independent Director
COMPENSATION
$112K
AGE
58
TENURE
4.8 yrs

Ari Levy

TITLE
Independent Director
COMPENSATION
$106K
AGE
39
TENURE
6.4 yrs

Rich Melman

TITLE
Independent Director
COMPENSATION
$126K
AGE
39
TENURE
4.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Del Taco Restaurants individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
18. Mar 20 Buy Ari Levy Individual 16. Mar 20 17. Mar 20 229,702 $2.67 $606,304
17. Mar 20 Buy Lawrence Levy Individual 13. Mar 20 16. Mar 20 171,573 $3.73 $494,719
16. Dec 19 Buy Belfer Management Company 12. Dec 19 12. Dec 19 91,369 $7.86 $717,996
11. Dec 19 Buy Belfer Management Company 06. Dec 19 09. Dec 19 63,090 $7.38 $458,917
13. May 19 Sell David Pear Individual 09. May 19 09. May 19 -13,500 $11.85 $-159,991
X
Management checks
We assess Del Taco Restaurants's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Del Taco Restaurants has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TACO News

Simply Wall St News

Why Del Taco Restaurants, Inc.'s (NASDAQ:TACO) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Del Taco Restaurants: P/E of 27.02 = $10.86 ÷ $0.40 (Based on the trailing twelve months to June 2019.) Is A High Price-to-Earnings Ratio Good? … NasdaqCM:TACO Price Estimation Relative to Market, September 4th 2019 Its relatively high P/E ratio indicates that Del Taco Restaurants shareholders think it will perform better than other companies in its industry classification. … The Verdict On Del Taco Restaurants's P/E Ratio Del Taco Restaurants trades on a P/E ratio of 27, which is above its market average of 17.1.

Simply Wall St -

A Closer Look At Del Taco Restaurants, Inc.'s (NASDAQ:TACO) Uninspiring ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Del Taco Restaurants: 3.6% = US$15m ÷ US$423m (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Del Taco Restaurants Have A Good ROE? … Del Taco Restaurants's Debt And Its 3.6% ROE Although Del Taco Restaurants does use debt, its debt to equity ratio of 0.35 is still low.

Simply Wall St -

Examining Del Taco Restaurants, Inc.’s (NASDAQ:TACO) Weak Return On Capital Employed

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Del Taco Restaurants: 0.042 = US$37m ÷ (US$955m - US$75m) (Based on the trailing twelve months to June 2019.) So, Del Taco Restaurants has an ROCE of 4.2%. … How Del Taco Restaurants's Current Liabilities Impact Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … With barely any current liabilities, there is minimal impact on Del Taco Restaurants's admittedly low ROCE.

Simply Wall St -

Del Taco Restaurants, Inc. (NASDAQ:TACO): Is Growth Priced In?

Del Taco Restaurants is available at price-to-earnings ratio of 27.44x, showing us it is overvalued based on current earnings compared to the Hospitality industry average of 22.4x , and overvalued compared to the US market average ratio of 17.88x. … However, since Del Taco Restaurants is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … So, when we include the growth factor in our analysis, Del Taco Restaurants appears a bit overvalued , based on its fundamentals.

Simply Wall St -

Does Del Taco Restaurants (NASDAQ:TACO) Have A Healthy Balance Sheet?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … NasdaqCM:TACO Historical Debt, July 5th 2019 A Look At Del Taco Restaurants's Liabilities The latest balance sheet data shows that Del Taco Restaurants had liabilities of US$72.5m due within a year, and liabilities of US$458.3m falling due after that. … Since Del Taco Restaurants does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time.

Simply Wall St -

What Does Del Taco Restaurants, Inc.'s (NASDAQ:TACO) P/E Ratio Tell You?

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Del Taco Restaurants: P/E of 24.1 = $10.94 ÷ $0.45 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good? … Hypothetically, a company could reduce its future P/E ratio by spending its cash (or taking on debt) to achieve higher earnings. … With relatively high debt, and no earnings per share growth over twelve months, it's safe to say the market believes the company will improve its earnings growth in the future.

Simply Wall St -

Shareholders Should Look Hard At Del Taco Restaurants, Inc.’s (NASDAQ:TACO) 5.6% Return On Capital

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Del Taco Restaurants, Inc. (NASDAQ:TACO): Time For A Financial Health Check

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Is Del Taco Restaurants, Inc.'s (NASDAQ:TACO) ROE Of 4.5% Concerning?

Our data shows Del Taco Restaurants has a return on equity of 4.5% for the last year. … That means that for every $1 worth of shareholders' equity, it generated $0.045 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Did Changing Sentiment Drive Del Taco Restaurants's Share Price Down By 18%?

(NASDAQ:TACO) have tasted that bitter downside in the last year, as the share price dropped 18%. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … During the unfortunate twelve months during which the Del Taco Restaurants share price fell, it actually saw its earnings per share (EPS) improve by 117%.

Simply Wall St -

TACO Company Info

Description

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 March 11, 2020, it operated 600 restaurants in 15 states. The company was founded in 1964 and is headquartered in Lake Forest, California.

Details
Name: Del Taco Restaurants, Inc.
TACO
Exchange: NasdaqCM
Founded: 1964
$116,434,214
37,080,960
Website: http://www.deltaco.com
Address: Del Taco Restaurants, Inc.
25521 Commercentre Drive,
Lake Forest,
California, 92630,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM TACO New Common Stock Nasdaq Capital Market US USD 06. Jan 2014
DB 22L New Common Stock Deutsche Boerse AG DE EUR 06. Jan 2014
Number of employees
Current staff
Staff numbers
7,844
Del Taco Restaurants employees.
Industry
Restaurants
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 05:21
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/03/19
Last earnings filing: 2020/03/13
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.