Del Taco (TACO) showed that restaurant sales don't have to be weak despite the pressure in the sector. Reports Q3 (Sep) earnings of $0.13 per share, $0.01 better than the Capital IQ Consensus of $0.12; revenues rose 27.3% year/year to $104.42 mln vs the $101.61 mln Capital IQ Consensus.Co issues guidance for FY16, reaffirms prior EPS guidance of $0.53-0.56 vs. $0.55 Capital IQ Consensus Estimate; sees FY16 revs of $446-449 mln vs. $446.8 mln Capital IQ Consensus Estimate and vs prior guidance of $439-449 mln. System-wide same store sales is expected to grow at the high end of the previous 2.5% to 4.5% guidance range.System-wide comparable restaurant sales in Q3 grew +6.7% and company-operated comparable restaurant sales grew +7.1%. The bad news is that despite reporting that comp sales grew around 7% for Q3, the Mexican concept didn't adjust EPS estimates for the year. The company plans to ramp up growth next year so investors might want to keep an eye on this concept that competes between a Taco Bell of Yum Brands (YUM) and a Chipotle Mexican Grill (CMG). Speaking of the later, Chipotle has given up $400 again and could finally be headed for a breakdown. As far as Del Taco, the stock is difficult to value not knowing how the company will operate in a growth environment. At about 6.5x EBITDA estimates of $70 million, the stock could have some value. Disclosure: No position