Del Taco Shares Jump After Earnings Beat, Guidance Raised

Del Taco Restaurants Inc. shares are up 8.9% in Tuesday premarket trading after the company announced third-quarter earnings that beat earnings and sales expectations. The Mexican fast-food chain said late Monday it had net income of $4.9 million, or 13 cents per share, compared with a loss of $2.2 million, or 6 cents per share, during the same period last year. Sales for the quarter totaled $104.4 million, up from $82.0 million last year, and exceeding the FactSet consensus of $102.0 million. Same-restaurant sales system-wide grew 6.7% while company-operated same-restaurant sales were up 7.1%. For fiscal year 2016, Del Taco now expects revenue between $446 million and $449 million, up from the previous forecast between $439 million and $449 million. Earnings per share are expected to be 53 cents to 56 cents, and same-restaurant sales are expected to grow in the 2.5% to 4.5% range. Del Taco shares are up 18.6% for the year so far while the S&P 500 Index is up 4% for the same period.