Here's Why Del Taco Stock Got Crushed Today
Shares of Del Taco Restaurants (NASDAQ: TACO) got crushed on Friday after the company reported results for the third quarter of 2020. Sales growth and results actually exceeded analyst expectations. Nevertheless, Del Taco stock was down 16% as of 10:45 a.m. EDT today.
Before today, there was plenty of reason to expect Del Taco to report a bad quarter. For one, its restaurant locations are highly concentrated in California, a state with strict ongoing coronavirus guidelines. This means most of the company's dining rooms are still closed.
But Del Taco reported surprising sales growth in Q3. Sales at existing restaurants (known as comparable sales) were up 4.1% year over year. Total revenue was up less than this due to some company-owned locations converting to franchised locations during the past year. But it was still up nonetheless.
Source Fool.com
