Del Taco Restaurants Inc. said on Monday that its same-store sales rose 6.7 percent in the quarter ended Sept. 6, the 12th straight quarter of growth for the Lake Forest, Calif.-based Mexican quick-service chain.
Company executives credited the chain’s addition of more higher-end products to its menu. Traffic in the period rose 2.3 percent, while average check rose 4.8 percent.
“Through the use of fresh ingredients and product innovation served with the speed and convenience of a drive-thru, we are further differentiating our iconic brand and broadening our appeal,” CEO Paul Murphy said in a statement. He noted that same-store sales are up 12.3 percent on a two-year basis.
Murphy said the company is planning to accelerate development next year and is working to attract new franchisees to the brand.
The company, which has 546 units, said that revenue rose 5.9 percent in the quarter to $104.4 million from $98.6 million in the same period a year ago. Net income increased to $4.9 million, or 13 cents per share, compared with a profit of $200,000 a year ago.
Del Taco estimates that higher minimum wages in California will increase labor costs by $7.2 million this year.
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