EPL Intermediate Inc., parent company of El Pollo Loco Inc., today reported results for the 13 weeks ended March 30.
El Pollo Loco reported operating revenue of $66.9 million, which is a decrease of $1.1 million, or 1.7 percent, from operating revenue for the 13-week period ended March 31, 2010 of $68.0 million. Operating revenue includes sales at company-operated restaurants and franchise revenue.
The decrease was primarily attributed to a 2.4 percent decrease in systemwide same-store sales for the first quarter of 2011 compared to the first quarter of 2010. For the 13 weeks ended March 30, 2011, same-store sales at company-operated restaurants decreased 1.7 percent and same-store sales at franchise-operated restaurants decreased 3.0 percent.
Despite the slight drop, Steve Sather, president and CEO of El Pollo Loco Inc., said the company is energized by the momentum underway in the system.
"In addition to introducing new tools to assist our restaurant operators in providing our guests an exceptional experience, we are developing crave-able new menu items that highlight our commitment to freshness and bold flavor, collaborating with our new advertising agency, goodness Mfg., to create a fully integrated, dual language campaign scheduled to launch in July, and partnering with a leading global design firm, Gensler & Associates, to develop a new restaurant prototype and remodel program," he said.
The company's operating income increased 31.6 percent, to $5.7 million for the first 13 weeks of 2011 from $4.4 million for the first 13 weeks of 2010. This increase was primarily due to decreases in both product costs and advertising expenses, as well as expenses related to store closures in 2010. The increase was partially offset by an increase in severance expenses and group medical insurance expense.
"While we expect some continued economic challenges in 2011, since the end of the first quarter of 2011, we continue to see a modest improvement in our company-operated restaurant same-store sales to date which helps to fuel our optimism going forward," Sather said.
