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Factors Setting the Tone for Del Taco's (DEL) Q3 Earnings

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Del Taco Restaurants, Inc. is scheduled to report third-quarter 2020 results on Oct 15, after the closing bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 100%. Further, it has a trailing four-quarter earnings surprise of 30.4%, on average.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter earnings is pegged at 10 cents, flat year over year. Over the past seven days, earnings estimates have been revised upward by a penny. The consensus mark for quarterly revenues stands at $120.4 million, suggesting an improvement of 0.1% from the prior-year quarter.

Factors to Note

The company’s results in the quarter are likely to reflect robust off-premise sales. Moreover, sequential improvements in comparable restaurant sales at both company-operated and franchised restaurants are likely to have benefited the company’s performance in the quarter to be reported. Recently, the company reported preliminary results wherein system-wide comparable restaurant sales rose 4.1%, with positive trends being witnessed at company-operated (2%) and franchised restaurants (6.5%).

Del Taco Restaurants, Inc. Price and EPS Surprise Del Taco Restaurants, Inc. Price and EPS Surprise

Del Taco Restaurants, Inc. price-eps-surprise | Del Taco Restaurants, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Del Taco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Del Taco Restaurants has a Zacks Rank #1 and an Earnings ESP of 0.00%, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks worth considering from the Zacks Retail-Wholesale space as our model shows that these have the right combination of elements to beat on earnings this season:

Brinker International, Inc. (EAT - Free Report) currently has a Zacks Rank of 1 and an Earnings ESP of +65.43%.

The Cheesecake Factory Incorporated (CAKE - Free Report) has a Zacks Rank #3 and an Earnings ESP of +28.45%.

Starbucks Corporation (SBUX - Free Report) has a Zacks Rank of 2 and an Earnings ESP of +4.72%.

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