Zacks Investment Research Upgrades Del Taco Restaurants, Inc. (TACO) to Buy

Del Taco Restaurants, Inc. (NASDAQ:TACO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Thursday. The brokerage presently has a $14.00 target price on the restaurant operator’s stock. Zacks Investment Research‘s price target points to a potential upside of 4.09% from the company’s previous close.

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. “

TACO has been the subject of several other research reports. Piper Jaffray Companies reiterated a “hold” rating and set a $13.00 price target on shares of Del Taco Restaurants in a report on Wednesday, July 26th. BidaskClub downgraded Del Taco Restaurants from a “sell” rating to a “strong sell” rating in a report on Sunday, July 30th. Wedbush reiterated a “buy” rating and set a $17.00 price target on shares of Del Taco Restaurants in a report on Monday, May 15th. Maxim Group reiterated a “buy” rating and set a $19.00 price target on shares of Del Taco Restaurants in a report on Thursday, June 22nd. Finally, Jefferies Group LLC reiterated a “buy” rating and set a $16.00 price target on shares of Del Taco Restaurants in a report on Monday, May 15th. One analyst has rated the stock with a sell rating, two have given a hold rating and six have given a buy rating to the company. The stock has a consensus rating of “Buy” and an average target price of $15.43.

Shares of Del Taco Restaurants (TACO) opened at 13.45 on Thursday. Del Taco Restaurants has a 52-week low of $10.75 and a 52-week high of $15.32. The firm has a 50-day moving average of $12.90 and a 200 day moving average of $13.09. The company has a market capitalization of $520.33 million, a P/E ratio of 23.68 and a beta of -0.21.

Del Taco Restaurants (NASDAQ:TACO) last announced its quarterly earnings results on Thursday, July 27th. The restaurant operator reported $0.13 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.13. Del Taco Restaurants had a return on equity of 5.90% and a net margin of 4.81%. The business had revenue of $108.60 million during the quarter, compared to the consensus estimate of $107.08 million. During the same quarter in the prior year, the company posted $0.13 earnings per share. Del Taco Restaurants’s revenue was up 8.6% compared to the same quarter last year. On average, analysts anticipate that Del Taco Restaurants will post $0.55 EPS for the current year.

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Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of Montreal Can increased its position in shares of Del Taco Restaurants by 5,995.7% in the second quarter. Bank of Montreal Can now owns 9,814 shares of the restaurant operator’s stock worth $135,000 after buying an additional 9,653 shares during the period. Voya Investment Management LLC acquired a new position in shares of Del Taco Restaurants during the second quarter worth about $165,000. American International Group Inc. increased its position in shares of Del Taco Restaurants by 7.0% in the first quarter. American International Group Inc. now owns 14,229 shares of the restaurant operator’s stock worth $189,000 after buying an additional 927 shares during the period. Martingale Asset Management L P acquired a new position in shares of Del Taco Restaurants during the second quarter worth about $200,000. Finally, C M Bidwell & Associates Ltd. acquired a new position in shares of Del Taco Restaurants during the second quarter worth about $249,000. Hedge funds and other institutional investors own 65.78% of the company’s stock.

About Del Taco Restaurants

Del Taco Restaurants, Inc is an operator and franchisor of restaurants featuring made-to-order cuisine, including both Mexican inspired and American classic dishes. As of January 3, 2017, the Company operated 551 Del Taco restaurants. The Company’s menu offers a combination of Mexican-inspired food, such as tacos and burritos, and American classics, such as Double Del cheeseburgers, crinkle-cut fries and milkshakes.