News

El Pollo Loco manages 2.4% Q1 comp sales growth, despite bad California weather

May 3, 2019

El Pollo Loco Holdings Inc. 2019 Q1 results for the 13 weeks that ended on March 28 revealed that total revenues grew 3%, while system-wide comp sales grew a healthy 2.4%. The company attributed some of the gains to higher check total, despite fewer overall tickets than the prior year's quarter, a news release said. 

Other key highlights include:  

• Total revenue grew to $109.0 million compared to $105.8 million in the same period of 2018.
• System-wide comparable restaurant sales for company-operated locations grew 1.5%.
• System-wide comparable restaurant sales for franchised restaurants grew 3.2%. 
• Net income fell to $0.9 million, or 2 cents per diluted share from $2.5 million, or 6 cents per diluted share the previous year's quarter. 
• Pro forma net income dropped to $5.9 million, or 15 cents per diluted share, compared to $6.7 million, or 17 centsper diluted share in the same period of 2018.
• Adjusted EBITDA fell to $14.2 million, compared to $14.6 million in the same period of 2018.

The company said that Q1 2019 also included a loss on assets held for sale of $4.1 million, while Q1 2018 included a $2.8 million pre-tax expense when two Texas locations were closed. The company also opted to drop plans for a third Texas location.

"We are pleased to begin the year with solid first quarter results, which included system-wide comparable sales growth of 2.4% and EPS of $0.15, despite adverse weather conditions in California where 80% of our restaurants are located," El Pollo Loco President and CEO Bernard Acoca, said in the release. 

"During the quarter we also continued to make tangible progress against our transformation agenda, specifically by adding key talent to our management team, initiating a brand relaunch, implementing a new simplified menu across our system, and holding our inaugural Employee Appreciation Month."

The company sad it was maintaining its earnings guidance for 2019 of pro forma diluted net income per share ranging from 70 to 75 cents.