Del Taco (TACO, $9.87) shares tumble after missing Q4 estimates
Shares of Del Taco Restaurants Inc. fell after the company failed to meet its fourth quarter estimates.
Missing earnings estimates by a penny, Del Taco’s Q4 earnings stood at 18 cents per share. However, sales for the quarter came in at $157.3 million, beating estimates by $290,000. Further, the company issued weak earnings guidance. It expects full-year adjusted EPS somewhere between 47 cents to 52 cents, lower than the estimate of 58 cents.
The company’s CEO is optimistic, however, as he interprets fourth quarter sales to be the sixth year of consistent achievement in a row. He believes that this was made possible by a strong franchise comparable restaurant sales growth across a diverse 13 state footprint that supports Del Taco's brand portability, including 25 new system-wide openings across ten states during 2018 -- of which nearly half were franchised restaurants.
He further commented that amidst challenges like wage and operation inflation, the company has demonstrated effective cost management and pricing strategies to post a strong annual restaurant contribution margin that remained near or above 20% in each of the last four years.
Some of the key Q4 highlights include system-wide restaurant sales up 2.5%, average check growth of 3.6%, 7.2% revenue growth year-over-year, and 25 system wide openings.
TACO in downward trend: price may decline as a result of having broken its higher Bollinger Band on June 26, 2026
TACO broke above its upper Bollinger Band on June 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 18 similar instances where the stock broke above the upper band. In of the 18 cases the stock fell afterwards. This puts the odds of success at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TACO moved out of overbought territory on July 08, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 11 similar instances where the indicator moved out of overbought territory. In of the 11 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 24 cases where TACO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TACO as a result. In of 30 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Aroon Indicator for TACO entered a downward trend on July 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TACO just turned positive on June 29, 2026. Looking at past instances where TACO's MACD turned positive, the stock continued to rise in of 12 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TACO advanced for three days, in of 62 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.310) is normal, around the industry mean (1.757). P/E Ratio (29.810) is within average values for comparable stocks, (99.854). TACO's Dividend Yield (0.000) is considerably lower than the industry average of (0.034). P/S Ratio (0.000) is also within normal values, averaging (1.790).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TACO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TACO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 99, placing this stock better than average.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a chain of fast food restaurants
Industry FinancialConglomerates
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