LAKE FOREST, Calif.--(BUSINESS WIRE)--
Del Taco Restaurants, Inc. (“Del Taco” or the “Company”), (NASDAQ: TACO,
TACOW), the second largest Mexican-American QSR chain by units in the
United States, operating restaurants under the name Del Taco, today
announced that its Board of Directors has increased the repurchase
program for the Company’s common stock and warrants to $50 million
(raised from $25 million). The increased authorization is effective
immediately and will expire upon completion of the repurchase program
unless terminated earlier by the Board of Directors.
Purchases under the program may be made in open market or privately
negotiated transactions (including, without limitation, the use of Rule
10b5-1 plans) in compliance with applicable federal securities laws. The
Company has no obligation to repurchase common stock or warrants under
this authorization, and the timing, actual number and value of
securities purchased will be made at management’s discretion, taking
into consideration the Company’s common stock and warrant prices, market
conditions, and other factors.
Since the inception of the program in March 2016 through August 22,
2016, Del Taco has repurchased 990,555 shares at an average price per
share of $9.58 and 476,806 warrants at an average price per warrant of
$2.11 for an aggregate of $10.5 million with approximately $39.5 million
remaining under the increased $50 million authorization.
About Del Taco Restaurants, Inc.
Founded in 1964 in Southern California, Del Taco (NASDAQ: TACO) is the
nation’s second largest Mexican Quick Service Restaurant chain. Known
for serving Mexican and American favorites prepared fresh in every
restaurants’ working kitchen, Del Taco’s menu items taste better because
they are made with fresh ingredients like cheddar cheese grated from
40-lb blocks, hand chopped pico de gallo, fresh sliced avocado, slow
cooked beans made from scratch, and fresh-grilled marinated chicken and
carne asada steak. In June 2016, Del Taco reinvigorated its UnFreshing
Believable® marketing campaign to further communicate its commitment to
serve guests everything that they love, including choosing not to choose
between tacos and fries, fresh prep and fair price, or great tasting
food and the convenience of a drive thru. With nearly 550 restaurants in
16 states, Del Taco serves more than three million guests each week. For
more information, follow Del Taco on Twitter, Facebook and Instagram or
visit www.deltaco.com.
Forward-Looking Statements
In addition to historical information, this release may contain a number
of “forward-looking statements” as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include,
without limitation, information concerning Del Taco’s possible or
assumed future results of operations, business strategies, competitive
position, industry environment, potential growth opportunities and the
effects of regulation. These statements are based Del Taco’s
management’s current expectations and beliefs, as well as a number of
assumptions concerning future events. When used in this press release,
the words “estimates,” “projected,” “expects,” “anticipates,”
“forecasts,” “plans,” “intends,” “believes,” “seeks,” “target,” “may,”
“will,” “should,” “future,” “propose,” “preliminary,” “guidance,” “on
track” and variations of these words or similar expressions (or the
negative versions of such words or expressions) are intended to identify
forward-looking statements. Such forward-looking statements are subject
to known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside Del Taco’s management’s
control that could cause actual results to differ materially from the
results discussed in the forward-looking statements. These risks
included, without limitation, consumer demand, our inability to
successfully open company-owned or franchised restaurants or establish
new markets, competition in our markets, our inability to grow and
manage growth profitably, adverse changes in food and supply costs, our
inability to access additional capital, changes in applicable laws or
regulations, food safety and foodborne illness concerns, our inability
to manage existing and to obtain additional franchisees, our inability
to attract and retain qualified personnel, our inability to profitably
expand into new markets, changes in, or the discontinuation of, the
Company’s repurchase program, and the possibility that we may be
adversely affected by other economic, business, and/or competitive
factors. Additional risks and uncertainties are identified and discussed
in Del Taco’s reports filed with the SEC and available at the SEC’s
website at www.sec.gov
and the Company’s website at www.deltaco.com.
Forward-looking statements included in this release speak only as of the
date of this release. Del Taco undertakes no obligation to update its
forward-looking statements to reflect events or circumstances after the
date of this release or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160823005448/en/
Source: Del Taco Restaurants, Inc.