Del Taco (TACO) to be acquired by Jack in the Box (JACK) for $12.51/share in cash

San Diego, California-based Jack in the Box, which would now have over 2,800 restaurants spanning 25 states, said the deal would help the chain beef up its off-restaurant premise sales. About 99% of Del Taco restaurants feature a drive-thru. 

  

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Del Taco to be acquired by Jack in the Box (JACK) for $12.51/share in cash

• Cos announced that the companies have entered into a definitive agreement pursuant to which Jack in the Box will acquire Del Taco for $12.51 per share in cash in a transaction valued at approximately $575 million, including existing debt. While this price per share offers an attractive premium to Del Taco shareholders, Jack in the Box estimates that the transaction values Del Taco at a synergy adjusted multiple of approximately 7.6x trailing twelve months Adjusted EBITDA.
• Jack in the Box expects the transaction to be mid-single-digit accretive to earnings per share excluding transaction expenses in year one and meaningfully accretive beginning in year two once full synergizes are realized.
• Jack in the Box expects the combined company to realize run-rate strategic and cost synergies of approximately $15 million by the end of fiscal year 2023, with approximately half of the synergies achieved in the first year. Jack in the Box expects to achieve these synergies largely through procurement and supply chain savings, technology and digital efficiencies and other financial benefits, as well as knowledge-sharing initiatives.

Del Taco (TACO) reported earnings on Thur 19 Oct 2017 (a/h)

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Del Taco reports EPS in-line, revs in-line; System-wide and Co-operated comparable restaurant sales growth of 4.1% and 3.7%; lowers FY17 EPS below consensus, narrows revs in-line

• Reports Q3 (Sep) earnings of $0.13 per share, in-line with the Capital IQ Consensus of $0.13; revenues rose 6.3% year/year to $110.99 mln vs the $110.46 mln Capital IQ Consensus.
  • System-wide and Company-operated comparable restaurant sales growth of 4.1% and 3.7%. 
    • Company-operated comparable restaurant sales growth was comprised of average check growth of 4.0%, including approximately 1.5% of menu mix growth, partially offset by a transaction decline of 0.3%.
  • The opening of two company-operated and two franchise restaurants.
• Co issues guidance for FY17, sees EPS of $0.52-$0.54 (prior: $0.52-0.55) vs. $0.56 Capital IQ Consensus Estimate; sees FY17 revs of $472-$475 mln (prior: $470-476 mln) vs. $472.65 mln Capital IQ Consensus Estimate.
  • Adjusted EBITDA between $71.5 million and $72.5 million (previously $71.5 and $73.5). 
  • Restaurant contribution margin between 19.5% and 19.8% (was 19.8% to 20.3%).
  • General and administrative expenses of between approximately 8.1% and 8.3% of total revenue (previously 8.2% and 8.4%).
  • Effective tax rate of approximately 39.0% (previously 40.0%).
  • Reaffirms net capital expenditures totaling approximately $43.0 million to $46.0 million. 
• John D. Cappasola, Jr., President and Chief Executive Officer of Del Taco, commented, "During the third quarter, our company-operated and franchised restaurants both extended their track records of positive comparable restaurant sales, and The Del Taco system as a whole achieved 10.8% growth in comparable restaurant sales on a two-year stacked basis. We successfully executed our strategy to lap last year's accelerated performance by combining comprehensive improvement across the brand with an impactful marketing plan. We raised the bar in operations by focusing on improving our Overall Satisfaction Scores and Lunch and Dinner Speed compared to last year, embedding awareness and usage of The Del Taco and Platos, and reintroducing Carnitas as a limited time offer. We finished the quarter with our launch of Queso, a highly relevant and elevated QSR+ ingredient that is currently mixing at approximately 7% of sales and will enable exciting future product innovation across our menu."

Del Taco Restaurants (TACO) reported earnings Thur 4 May 2017 (a/h)

• IPO:  June 30, 2015

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• Del Taco beats Street 1Q forecasts

LAKE FOREST, Calif. (AP) _ Del Taco Restaurants Inc. (TACO) on Thursday reported first-quarter earnings of $4.2 million.

The Lake Forest, California-based company said it had net income of 10 cents per share.

The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.

The restaurant chain posted revenue of $105.3 million in the period, also exceeding Street forecasts. Three analysts surveyed by Zacks expected $105 million.

Del Taco expects full-year earnings to be 52 cents to 55 cents per share, with revenue in the range of $466 million to $476 million.

Del Taco shares have decreased 5 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $13.40, a rise of 35 percent in the last 12 months.