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Financing

Del Taco sales turned positive last quarter

The Mexican fast-food chain said same-store sales rose 4.1% in the third quarter, according to its preliminary earnings.
Del Taco
Photograph: Shutterstock

Del Taco’s same-store sales turned positive last quarter as customers lined up at the chain’s drive-thrus.

The Lake Forest, Calif.-based Mexican fast-food chain’s same-store sales rose 4.1% in the third quarter ended Sept. 8, according to preliminary earnings released late on Tuesday.

Same-store sales rose 2% at company locations and 6.5% at franchised restaurants. The company credited its expanding off-premise, value-focused offering and contactless channels that “resonated” with customers.

The results enabled the company to reduce the balance on its revolving credit line by $21 million.

“Our nimble and focused approach resulted in comparable restaurant sales that sequentially improved from the fiscal second quarter and turned positive at both company-operated and franchised restaurants during the third quarter,” CEO John Cappasola said in a statement.

Fast-food restaurants have largely recovered in recent months and have been showing positive sales, as their focus on takeout has proven an advantage at a time when dine-in remains limited or unavailable altogether. Several chains have turned positive in recent months, including 12% in the week ended Sept. 13, according to the financial data firm Facteus.

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