Keeley Funds Comments on Del Taco Restaurants
- By Holly LaFon
Del Taco Restaurants, Inc (NASDAQ:TACO) engages in developing, franchising, owning, and operating Del Taco quick-service Mexican-American restaurants. Led by a recently promoted CEO, John Cappasola, the California based company has been successful at revitalizing the brand and introducing new products as evident by sixteen consecutive quarters of systemwide sales growth. Despite reporting sales growth of 4.1% in the third quarter, the stock sold off on concerns regarding future margin headwinds stemming from both food and labor inflation. In addition, the industry continues to fight for market share by pushing "value bundles" led by the larger brands such McDonalds. We continue to believe the company is well positioned to weather this environment and will continue to prudently grow outside its' core West Coast roots utilizing a barbell menu strategy of new entrees combined with compelling "buck and under" menu items.
Warning! GuruFocus has detected 1 Warning Sign with TACO. Click here to check it out.
The intrinsic value of TACO
From the Keeley All Cap Value Fund fourth quarter 2017 shareholder letter.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 1 Warning Sign with TACO. Click here to check it out.
The intrinsic value of TACO
