Zacks Investment Research Downgrades Del Taco Restaurants (NASDAQ:TACO) to Hold

Zacks Investment Research downgraded shares of Del Taco Restaurants (NASDAQ:TACO) from a buy rating to a hold rating in a report published on Wednesday, Zacks.com reports.

According to Zacks, “Del Taco is the second largest Mexican-American QSR chain by units in the United States, serving more than three million guests each week. At Del Taco, menu items are made to order with fresh ingredients, including Cheddar cheese grated from 40-pound blocks, handmade pico de gallo salsa, lard-free beans slow-cooked from scratch, and marinated chicken grilled in the restaurant. The menu includes classic Mexican dishes such as tacos, burritos, quesadillas and nachos as well as American favorites including hamburgers, crinkle-cut fries and shakes. The company was founded on June 30, 2015 and is headquartered in Lake Forest, CA. “

A number of other research firms have also recently issued reports on TACO. Benchmark initiated coverage on Del Taco Restaurants in a research report on Friday, November 12th. They issued a buy rating and a $14.00 target price on the stock. Wedbush reiterated a buy rating and issued a $15.00 target price on shares of Del Taco Restaurants in a research report on Friday, October 15th. One analyst has rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of Buy and a consensus target price of $13.13.

Shares of NASDAQ TACO opened at $8.08 on Wednesday. The company has a quick ratio of 0.16, a current ratio of 0.19 and a debt-to-equity ratio of 0.49. Del Taco Restaurants has a 52 week low of $8.01 and a 52 week high of $11.99. The company has a market capitalization of $294.05 million, a PE ratio of 15.25 and a beta of 1.98. The stock has a fifty day moving average of $8.63.

Del Taco Restaurants (NASDAQ:TACO) last released its earnings results on Thursday, October 14th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.10 by $0.01. Del Taco Restaurants had a return on equity of 9.43% and a net margin of 3.83%. During the same period in the previous year, the firm earned $0.16 EPS. Research analysts anticipate that Del Taco Restaurants will post 0.48 earnings per share for the current year.

The company also recently declared a quarterly dividend, which was paid on Wednesday, November 24th. Stockholders of record on Wednesday, November 3rd were issued a dividend of $0.04 per share. This represents a $0.16 annualized dividend and a dividend yield of 1.98%. The ex-dividend date of this dividend was Tuesday, November 2nd. Del Taco Restaurants’s dividend payout ratio (DPR) is currently 30.19%.

Several large investors have recently added to or reduced their stakes in the company. Citigroup Inc. grew its holdings in shares of Del Taco Restaurants by 5.0% during the second quarter. Citigroup Inc. now owns 26,841 shares of the restaurant operator’s stock worth $269,000 after purchasing an additional 1,274 shares during the last quarter. Advisor Group Holdings Inc. lifted its stake in shares of Del Taco Restaurants by 122.9% in the third quarter. Advisor Group Holdings Inc. now owns 2,953 shares of the restaurant operator’s stock worth $26,000 after acquiring an additional 1,628 shares during the period. The Manufacturers Life Insurance Company lifted its stake in shares of Del Taco Restaurants by 9.4% in the second quarter. The Manufacturers Life Insurance Company now owns 20,169 shares of the restaurant operator’s stock worth $202,000 after acquiring an additional 1,728 shares during the period. Captrust Financial Advisors acquired a new position in shares of Del Taco Restaurants in the first quarter worth approximately $25,000. Finally, Lazard Asset Management LLC acquired a new position in shares of Del Taco Restaurants in the second quarter worth approximately $27,000. Institutional investors own 76.72% of the company’s stock.

About Del Taco Restaurants

Del Taco Restaurants, Inc engages in developing, franchising, owning, and operating dining place. It features made-to-order cuisine both Mexican inspired and American classic dishes. Its menu includes tacos and burritos, Double Del cheeseburgers, crinkle-cut fries, and milkshakes. The company was founded by Ed Hackbarth and David Jameson in 1964 and is headquartered in Lake Forest, CA.

Featured Article: Diversification For Individual Investors

Get a free copy of the Zacks research report on Del Taco Restaurants (TACO)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Del Taco Restaurants Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Del Taco Restaurants and related companies with MarketBeat.com's FREE daily email newsletter.