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Del Taco Restaurants, Inc.

deltaco.com

No Longer Reporting

The company has not filed an annual or quarterly report since its FY2021 10-K, filed Mar 8, 2022. Its latest SEC filing is a SC 13G/A from Feb 10, 2023.

The sections below describe the company as of the FY2021 annual report.

What Did They Do?

Runs restaurants serving made-to-order Mexican-inspired food and American classics to diners.

How Did They Make Money?

Most revenue comes from company restaurant sales: diners pay for food and service when delivered. Franchisees also pay fees over agreement terms and royalties based on their restaurant sales.

revenue
SegmentShareRevenue
Company restaurant sales
Sold outright

90%
FY2017: 96%
Franchise revenue
Mix
4.5%
FY2017: 3.5%
Franchise advertising contributions
3.4%
FY2017: 0.0%
Franchise sublease and other income
2.0%
FY2017: 0.6%

Who Were Their Customers?

Diners buy meals at company-operated and franchise-operated restaurants, with delivery available through third-party services.

Did Revenues Turn Into Profits?

Yes. It kept 1 cent of every revenue dollar as net income in FY2021 and turned 4 cents into free cash flow.

Operating income, FY2021
2% of revenue
▲ Now profitable vs FY2020 (−$87M, −18%)
Net income, FY2021
1% of revenue
▲ Now profitable vs FY2020 (−$89.7M, −18%)
Free cash flow, FY2021
4% of revenue
▼ −40% vs FY2020 ($37.7M, 8%)

How Were They Changing?

Grew. Revenue grew 12% in 3 years, from $471.5M in FY2017 to $527.4M in FY2021, about 4% a year.

More franchise-operated restaurants Portfolio optimization shifted restaurant ownership toward franchisees and focused company operations on core Western markets; the older report described acquiring some franchise restaurants while planning to refranchise others.

Expanded digital ordering and delivery The older report described a mobile app and planned delivery expansion; the latest report describes a relaunched app with loyalty and delivery through several providers across company-operated and franchise-operated restaurants.

Revenue over time
Company restaurant sales Franchise revenue Franchise advertising contributions Franchise sublease and other income
$1B$500M$0

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