Why Shares of Del Taco Are Falling Today
Shares of Del Taco Restaurants (NASDAQ: TACO) traded down more than 14% on Tuesday after the fast-casual restaurant chain delivered weaker-than-expected quarterly results and cut guidance. The company blamed "inflationary pressure" on food, labor, and operating expenses for eating into profits, causing it to take a more conservative view on future results.
After markets closed on Monday, Del Taco reported third-quarter adjusted earnings of $0.10 per share, short of the $0.14-per-share consensus despite meeting analyst revenue expectations for $120.2 million. Systemwide same-store sales were up 1% year over year. Del Taco also cut its full-year fiscal 2019 earnings view to $0.44 to $0.47 per share, from $0.47 to $0.52 per share, and dropped full-year revenue targets as well.
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Source Fool.com
