News

El Pollo Loco Q3 comp sales up 2.6 percent

November 2, 2018

El Pollo Loco announced its Q3 financial results for the 13-week period ended Sept. 26, including total revenue growth of 5.5 percent to 106.7 million, excluding franchise advertising fee revenue. Including $5.5 million of franchise advertising fee revenue, total revenue increased 10.9 percent to $112.2 million, a news release said.

Other key Q3 results include: 

• 2.6 percent growth in systemwide comp sales.
• $6.8 million net income or $0.17 per diluted share, compared to last year's Q3 net loss of $4 million or $0.11 per diluted share.
• $7.6 million pro forma net income or $0.19 per diluted share, compared to last year's $6 million, or $0.15 per diluted share.
• $16.3 million adjusted EBITDA, compared to $16.2 million Q3 2017.

"We are very pleased to report third quarter results that demonstrate increasing business momentum," President and CEO Bernard Acoca said in the release. "Systemwide comparable restaurant sales grew 2.6 percent in the third quarter, or 4.3 percent on a two-year basis. 

"We are encouraged by the progress we are making against our Transformation Agenda, which we believe is reflected in these results. We are confident that as we continue to execute against our strategies to invest in and grow our talent, accentuate and build upon our brand strengths, and profitably and responsibly grow our business for the long term, we can realize our brand's full potential."

Based on current information, the company updated its earnings guidance for the year to say it expect 2018 pro forma diluted net income per share ranging from $0.70 to $0.73, excluding the impact of potential share repurchases. This compares to pro forma diluted net income per share of $0.63 in 2017. Pro forma net income guidance for fiscal year 2018 is based, in part, on the following updated annual assumptions:

• Systemwide comparable restaurant sales growth of flat to 1 percent.
• Eight new company-owned restaurants and nine to 10 new franchised restaurants.
• 18.7 to 19 percent restaurant contribution margin.
• Eight to 8.2 percent G&A expenses excluding CEO transition costs and legal and reflecting a change in accounting for franchise advertising fees.
• 26.5 percent pro forma income tax rate.
• $61.5 to $63 million adjusted EBITDA.