Del Taco Restaurants (NASDAQ:TACO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Del Taco is the second largest Mexican-American QSR chain by units in the United States, serving more than three million guests each week. At Del Taco, menu items are made to order with fresh ingredients, including Cheddar cheese grated from 40-pound blocks, handmade pico de gallo salsa, lard-free beans slow-cooked from scratch, and marinated chicken grilled in the restaurant. The menu includes classic Mexican dishes such as tacos, burritos, quesadillas and nachos as well as American favorites including hamburgers, crinkle-cut fries and shakes. The company was founded on June 30, 2015 and is headquartered in Lake Forest, CA. “
A number of other research firms also recently issued reports on TACO. BidaskClub raised shares of Del Taco Restaurants from a “hold” rating to a “buy” rating in a research report on Wednesday, June 27th. Piper Jaffray Companies increased their target price on shares of Del Taco Restaurants from $12.00 to $14.00 and gave the stock a “neutral” rating in a research report on Friday, July 27th. Citigroup increased their price objective on shares of Del Taco Restaurants from $13.00 to $16.00 and gave the company a “buy” rating in a research report on Thursday, June 21st. TheStreet raised shares of Del Taco Restaurants from a “c+” rating to a “b-” rating in a research report on Wednesday, July 18th. Finally, ValuEngine downgraded shares of Del Taco Restaurants from a “buy” rating to a “hold” rating in a research report on Thursday, July 26th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and six have issued a buy rating to the company. The company has an average rating of “Buy” and an average price target of $16.06.
TACO traded down $0.16 on Thursday, reaching $12.75. 1,057 shares of the company’s stock were exchanged, compared to its average volume of 152,642. The company has a market cap of $495.22 million, a PE ratio of 24.44, a price-to-earnings-growth ratio of 1.36 and a beta of -0.09. Del Taco Restaurants has a twelve month low of $10.00 and a twelve month high of $15.99. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.34 and a current ratio of 0.39.
Del Taco Restaurants (NASDAQ:TACO) last posted its earnings results on Thursday, July 26th. The restaurant operator reported $0.14 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.14. The firm had revenue of $117.81 million during the quarter, compared to the consensus estimate of $116.97 million. Del Taco Restaurants had a net margin of 9.79% and a return on equity of 4.84%. The company’s revenue was up 8.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.13 EPS. sell-side analysts predict that Del Taco Restaurants will post 0.6 earnings per share for the current year.
In other news, CEO John D. Jr. Cappasola sold 7,500 shares of the firm’s stock in a transaction that occurred on Monday, July 2nd. The shares were sold at an average price of $13.98, for a total transaction of $104,850.00. Following the completion of the sale, the chief executive officer now owns 506,031 shares of the company’s stock, valued at $7,074,313.38. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 14.60% of the stock is currently owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in TACO. Keeley Teton Advisors LLC grew its position in shares of Del Taco Restaurants by 43.4% during the first quarter. Keeley Teton Advisors LLC now owns 1,996,488 shares of the restaurant operator’s stock worth $20,684,000 after buying an additional 603,909 shares in the last quarter. BlackRock Inc. grew its position in shares of Del Taco Restaurants by 21.5% during the first quarter. BlackRock Inc. now owns 3,076,121 shares of the restaurant operator’s stock worth $31,868,000 after buying an additional 544,121 shares in the last quarter. Millennium Management LLC grew its position in shares of Del Taco Restaurants by 74.9% during the second quarter. Millennium Management LLC now owns 906,943 shares of the restaurant operator’s stock worth $12,860,000 after buying an additional 388,445 shares in the last quarter. Royce & Associates LP grew its position in shares of Del Taco Restaurants by 23.7% during the second quarter. Royce & Associates LP now owns 1,452,863 shares of the restaurant operator’s stock worth $20,602,000 after buying an additional 278,300 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its position in shares of Del Taco Restaurants by 9.6% during the first quarter. Dimensional Fund Advisors LP now owns 3,028,759 shares of the restaurant operator’s stock worth $31,378,000 after buying an additional 264,462 shares in the last quarter. 77.68% of the stock is owned by institutional investors and hedge funds.
Del Taco Restaurants Company Profile
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 January 2, 2018, it operated 312 company-operated and 252 franchise-operated Del Taco restaurants located in 14 states, including 1 franchise-operated unit in Guam.
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