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Why Del Taco Restaurants, Inc. Stock Plummeted

TheMotleyFool

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Why Del Taco Restaurants, Inc. Stock PlummetedPhoto, wide shot, wide-angle lens, Retail store, neutral atmosphere, photo by Joe Cornish: https://img.theapi.app/temp/5574eb69-dc38-42f3-aadd-6163ac8bd4a8.png

Why Del Taco Restaurants, Inc. Stock Plummeted

Shares of fast-food company Del Taco (NASDAQ: TACO) fell as much as 22.6% on Friday, following the company's third-quarter earnings release. The stock is down about 19% at the time of this writing.

While Del Taco's third-quarter results were in line with analysts' consensus estimates for the quarter, the company's decision to revise its guidance on some key metrics could have some investors worried. Cost pressures, particularly from food inflation, led the company to reduce its outlook for expected restaurant contribution margins.

Image source: Getty Images.

Source: Fool.com