- Del Taco saw a strong recovery in revenue in Q3, with the stock up over 250% from its March lows.
- The company's delivery and drive-through business made up for most dining rooms being closed in the quarter, with quarterly revenues up 0.5% year-over-year to $120.8 million.
- However, while the stock has held up better than most during the global pandemic, the stock remains a little expensive, trading at over 31x forward earnings for a low-growth story.
- Therefore, I don't see any reason to pay up for the stock here at $9.20, and I would view rallies above $10.30 as an opportunity to book some profits.
For further details see:
Del Taco: Priced For Near Perfection