Interested In Del Taco Restaurants Inc (TACO)? Here’s What Its Recent Track-Record Looks Like
Assessing Del Taco Restaurants Inc’s (NASDAQ:TACO) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess TACO’s recent performance announced on 12 September 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Del Taco Restaurants
How Did TACO’s Recent Performance Stack Up Against Its Past?
For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to examine different stocks on a similar basis, using new information. Del Taco Restaurants’s latest earnings is $22.7M, which, against the prior year’s level, has increased by 27.04%. Given that these values are fairly short-term, I’ve calculated an annualized five-year value for TACO’s earnings, which stands at $7.0M. This means that, on average, Del Taco Restaurants has been able to increasingly improve its profits over the past couple of years as well.
How has it been able to do this? Let’s take a look at if it is merely owing to an industry uplift, or if Del Taco Restaurants has seen some company-specific growth. Over the last few years, Del Taco Restaurants grew its bottom line faster than revenue by effectively controlling its costs. This resulted in a margin expansion and profitability over time. Scanning growth from a sector-level, the US hotels, restaurants and leisure industry has been growing its average earnings by double-digit 14.12% over the previous twelve months, and 11.05% over the previous few years. This shows that any tailwind the industry is profiting from, Del Taco Restaurants is capable of leveraging this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Del Taco Restaurants has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Del Taco Restaurants to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for TACO’s future growth? Take a look at our free research report of analyst consensus for TACO’s outlook.
2. Financial Health: Is TACO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
