Del Taco Restaurants, Inc. (NASDAQ:TACO) Q3 2019 Earnings Conference Call - Final Transcript
Oct 21, 2019 • 04:30 pm ET
John D. Cappasola
from lease accounting. Given our results to-date, as well as a more cautious stance on our current 16 week Q4, we have revised our annual guidance. As we've discussed on recent calls, our brand focus this year is to activate and embed our transaction-driving initiatives including our digital transformation, value evolution and product innovation. Beginning with digital, I would still characterize our digital initiatives as an early innings relative to the opportunity that we have to establish new channels of transactions, but we are certainly beginning to see encouraging results.
Our Del App now exceeds 800,000 registered users and all company restaurants are accepting mobile orders through the Del App for pickup or delivery plus over 100 franchise restaurants are currently live or in the process of adding this capability. As we've mentioned before, we are focused on growing our database of consumers in 2019 into a sizable base to leverage. As we move into 2020, we will enhance our CRM targeting capabilities to drive further guest engagement and ultimately returns on investment through improved segmentation techniques enabled with scale.
In addition, in late fiscal Q3, we launched Postmates across all company restaurants and immediately realized favorable adoption. In fact, we more than tripled our third party marketplace delivery incidents during the recent four weeks compared to the prior run rate, which had only one provider. We are also encouraged by the over indexing of delivery during our late snack and graveyard dayparts as they typically have significant capacity and also extend past the operating hours of most casual and fast casual brands as well as many QSRs who are not open late night. As you know, our goal is to maximize consumer demand through a multiple-DSP approach and by the end of the year we expect to launch our third DSP DoorDash who continues to expand market share in many of our markets and represents a viable opportunity to further expand our reach in the delivery channel.
Now let's shift to our value evolution. The first part of our evolution was the addition of Fresh Faves boxes at key $4, $5 in $6 price points to fill the mid-tier value opportunity on our menu and reinforce everyday value. We plan to continue to embed the platform with new news like we did in early Q3, which helped drive Fresh Faves mix of over 6% during the quarter. The next key part of our evolution is making sure we remain highly relevant on the lower tier of the value spectrum in order to complement Fresh Faves and our premium innovation. During Q4, we recently launched a 2 for $3 Del Taco promotion to enhance our value and affordability perceptions and we plan to maintain a focus on enhancing the lower end of the value spectrum given the highly competitive value landscape in QSR.
Finally, product innovation was led by the late fiscal Q3 debut of the $2 Breakfast Toasted Wrap which is a highly portable and craveable new product featuring