How Upstart Del Taco Is Taking Aim at Giants Taco Bell and Chipotle

Del Taco (TACO) is an up and comer in the business of quickly dishing out tacos and burritos. At some 550 plus restaurants in 16 states, the company is trying to carve out a niche in the competitive fast-food Mexican cuisine space led by giants such as Yum! Brands (YUM) Taco Bell and Chipotle (CMG). Despite less name recognition that comes from a smaller number of locations being operated relative to its peers, Del Taco managed to log its twelfth straight quarter of same-restaurant sales gains at company-owned locations in the second quarter. Systemwide same-restaurant sales improved for seven straight quarters. Income from operations increased 30.2% in the second quarter. 'I think it’s really the positioning we really have as a company, our motto is we start with fresh and serve with value – as a result we are able to take share not only from quick-service operators such as Taco Bell, but also the fast casual restaurants like a Chipotle,' explained Del Taco president and CEO Paul Murphy in an interview with TheStreet as to how the company is logging solid sales amidst formidable competitors. TheStreet’s Brian Sozzi reports from New York.